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Bitcoin’s price has risen by around 45% in November 2024 alone. Attributed largely to Donald Trump’s victory in the U.S. presidential election, Bitcoin’s price surge has convinced many in the community that more favorable regulatory infrastructure under a Trump administration could further drive the adoption of decentralized digital assets. When Bitcoin hits the $100,000 mark, many believe it will have satisfied its case for legitimacy having solidified its status as a mainstream asset class. The milestone is expected to attract increased institutional investment and broader public acceptance, further integrating Bitcoin into the global financial system.
Why is Bitcoin’s price going up?
Bitcoin’s price is going up. In reality, it has been steadily rising since its creation in 2009. But in recent weeks, Bitcoin has hit several new all-time highs (ATHs) as it nears the $100,000 mark; a figure predicted by some, while criticized and flouted by others. At the time of writing, Bitcoin’s new all-time high stands at $99,571. This surge has been attributed mainly to Donald Trump’s victory in the U.S. presidential election as he is expected to implement policies that favor deregulation and pro-business initiatives.
Beyond politics, Bitcoin’s current price surge is also fueled by growing concerns surrounding inflation, increased adoption by financial institutions, and the use of cryptocurrencies in global finance. Institutional investors, such as hedge funds and publicly traded companies, are much more likely to view Bitcoin as a hedge against economic uncertainty and currency devaluation than before, factors which bode very well for Bitcoin’s future.
How high can Bitcoin go?
In theory, there is no limit to how high Bitcoin’s price can go. Bitcoin’s characteristics have not changed since it was created, meaning that its value has fluctuated because of the value its users attribute to it. In essence, Bitcoin gains value based on the fact that people choose to use it, and as its utility and ubiquity increases, its value follows. Its fixed supply of 21 million coins also contrasts sharply with the unlimited supply of FIAT currencies, making Bitcoin an attractive hedge against inflation.
What’s more, the expansion of Bitcoin adoption as a store of value, a means of payment, or even as a reserve asset could fuel further growth. Innovations in financial products and services, and the bridging of traditional and digital systems (such as the approval of spot Bitcoin ETFs) also open the door for greater participation. It is also not impossible that Bitcoin could replace the local FIAT currency in some regions (take the case in El Salvador). If this were to happen and the cryptocurrency accounted for a significant portion of global wealth, Bitcoin’s price could rise exponentially.
Normalizing crypto payments
As crypto adoption and acceptance increase, so does its utility. In this sense, Bitcoin is slowly but surely fulfilling the objective behind creation: to become “a purely peer-to-peer version of electronic cash [that] would allow online payments to be sent directly from one party to another without going through a financial institution”. The growing incorporation of crypto payment processors, such as ForumPay, that help fortify the digital economy and Bitcoin’s legitimacy as a valid currency, has made it easier than ever for users and merchants to transact using crypto. Major retailers and online platforms now accept Bitcoin as payment, further integrating it into everyday commerce.
Advancements in scalability solutions like the Lightning Network have significantly reduced transaction costs and times and made Bitcoin more practical for daily use. In many regions such as Sub-Saharan Africa and East Asia, the “unbanked” and financially excluded populations use Bitcoin and other cryptocurrencies to transact with businesses and send funds internationally, thanks to the borderless nature of cryptocurrencies. As more use cases emerge, Bitcoin is transitioning from a speculative asset to a widely accepted and used means of exchange.
For more on Bitcoin, discussions of current crypto trends, and how to integrate crypto payments into your business’ workflow, visit www.forumpay.com, or get in touch with our sales team to discuss any questions you may have.
