bitcoin nears $100k as market sees crypto boost

As bitcoin approached $100,000, stall holders in a south London market say accepting the cryptocurrency has led to extra sales.

Bitcoin touched a fresh record high, with its sights set firmly on the $100,000 barrier, in a stellar rally for the cryptocurrency sparked by expectations of a more friendly regulatory environment under a Donald Trump administration.

It has more than doubled in value this year and is up about 45% since Trump's sweeping election victory on Nov. 5, which has also seen a slew of pro-crypto lawmakers being elected to Congress.

So far in its roughly 15-year history, the currency has failed to catch on as a means of payment, and merchants often point to its volatility as a reason.

But its recent gains mean bitcoin appears to be on the cusp of mainstream acceptance for the first time since its creation.

Cryptocurrencies have soared since the Nov. 5 U.S. election as traders bet President-elect Trump's promised support for digital assets would lead to a less restrictive regulatory regime and inject some life back into bitcoin after a listless few months.

The growing excitement has taken the global cryptocurrency market's value above $3 trillion to a record high, based on analytics and data aggregator CoinGecko.

One big reason Bitcoin’s price has gone up is because institutional demand continues to rise.. They’re putting a lot of money into Bitcoin, which makes it more trustworthy.

The way the market works also helps. More people are accepting Bitcoin as a real type of investment. Since there’s only a limited amount of Bitcoin available and more people want it, the price keeps going up on the basic rule of supply and demand.

The derivatives market is a big factor in Bitcoin’s price increase. Bitcoin’s Open Interest, which shows how many contracts are active, has reached $63 billion. This is a record amount and is much higher than in 2021 when it was over $20 billion. Back then, Bitcoin’s price was at its highest, around $69,000.