Bitcoin hits $100,000 as investors bet on Trump crypto rally

Bitcoin has seen fewer drastic falls in value during 2024 than in previous years.

In 2022 its price fell sharply below $16,000 after crypto exchange FTX collapsed into bankruptcy.

A number of key events besides Trumps victory in the election have helped boost investor confidence that its value will keep going up.

The SEC approved several spot Bitcoin exchange traded funds (ETFs) allowing giant investment firms like Blackrock, Fidelity and Grayscale to sell products based on the price of Bitcoin.

Some of these products have seen billions of dollars in cash inflows.

But its potential to suddenly plummet in value serves as a reminder that it is not like orthodox currencies - and investors have no protection or recourse if they lose money on Bitcoin investments.

Carol Alexander, professor of finance at Sussex University, told BBC News that fear of missing out (FOMO) among younger people will see Bitcoins price continue to rise.

But she added that while this could spark a rise in other cryptocurrencies, many of the younger investors investing in meme coins are losing money.