Bitcoin, the digital currency that has been making waves in the financial world, reached a significant milestone on Wednesday. The price of bitcoin rallied above $100,000, returning the cryptocurrency over the six-figure threshold and extending a post-election surge. This comes after the latest U.S. inflation report fell in line with analyst expectations.

Unlock the Potential of Bitcoin's Post-Election Rally

Bitcoin's Rapid Ascent

Bitcoin increased by nearly 6% to over $101,300 as of around 3:15 p.m. EST on Wednesday. This follows a two-day selloff that dropped the crypto as low as $94,304. The cryptocurrency had previously eclipsed the $100,000 milestone for the first time late on Dec. 4 and briefly hit an intraday record of $103,844.05. This rapid movement showcases the volatility and potential of bitcoin in the market.Bitcoin's journey to reach $100,000 was not an easy one. It took several weeks and significant price movements. Between Nov. 4, the day before the election, and Dec. 4, the price of bitcoin increased by 52.8%. During this period, bitcoin crossed the $90,000 threshold just three days after surpassing $80,000 for the first time. This shows the consistent upward trend and the ability of bitcoin to break through significant price levels.

The Impact of Inflation Report

The return to six figures in bitcoin's price follows the latest report from the Bureau of Labor Statistics. The report indicated that inflation rose 2.7% in November, while core inflation—a measurement excluding the cost of food and energy—remained unchanged from October’s annual rate increase of 3.3%, aligning with estimates from analysts. This news had a significant impact on the market, as it led to increased optimism and a surge in bitcoin's price.Lower inflation rates often lead to lower interest rates, which can improve liquidity for assets like cryptocurrency. This is one of the reasons why bitcoin's price tends to surge when there is optimism surrounding lowered rates. The approval of spot bitcoin exchange-traded funds in January also contributed to the initial surge in bitcoin's price before the presidential election. President-elect Donald Trump, an earlier critic of cryptocurrencies, has since campaigned on making the U.S. the “crypto capital of the planet.” He has announced support for bitcoin mining and previously sold a line of Trump-branded NFTs. As of Sept. 30, about $3 million of his $6 billion fortune has been invested in cryptocurrency. In the weeks since winning the election, Trump tapped Paul Atkins to lead the SEC, citing Atkins’ pro-crypto views. Gary Gensler, the current SEC lead who had undertaken enforcement actions against several crypto firms, announced he would step down from the role in January.

The Future of Bitcoin

The rally of bitcoin above $100,000 raises questions about the future of the cryptocurrency. Will it continue to rise? What impact will it have on the global financial system? These are questions that investors and analysts are closely watching. Bitcoin's volatility and potential for significant price movements make it a fascinating asset to follow. It will be interesting to see how it continues to evolve in the coming months and years.In conclusion, the rally of bitcoin above $100,000 is a significant event in the world of cryptocurrency. It shows the power and potential of this digital asset and the impact that external factors like inflation reports and political decisions can have on its price. As bitcoin continues to gain popularity and acceptance, it will be important to closely monitor its movements and understand the factors that drive its price.