The price of Bitcoin burst through US$100,000 (A$153,846) for the first time on Wednesday (Thursday AEDT) due to positive sentiment about the election of Donald Trump as United States President.
The world's largest digital currency had risen from $69,374 since election day on 5 November to $103,713 overnight before easing back below $100,000 on profit taking.
The Republican leader originally described Bitcoin as a scam but has since embraced the cryptocurrency by claiming he would make the United States the “crypto capital of the planet” and announcing a number of supportive policies.
Caroline Bowler, CEO of Australian crypto exchange BTC Markets, said the strong rally reflected renewed confidence in Bitcoin and highlighted a possible shift in market dynamics, with capital rotating from other cryptocurrencies like XRP and TRX.
She said broader regulatory changes which could improve Australians’ access to crypto products added to the momentum.
"Together, these domestic and international factors create a supportive backdrop for Bitcoin’s historic rise," Bowler said.
Another supportive development was Trump’s nomination of a crypto advocate Paul Atkins as Head of the Securities and Exchange Commission.
“Atkins’s market-friendly stance and emphasis on fostering innovation have raised expectations for clearer, more crypto-aligned policies,” Bowler said.
Bitcoin, which was invented in 2008, is a limited resource with a total supply 21 million coins, which is expected to be reached around 2140.
