Bitcoin Nears USD 100,000 as Post-Election Rally Gains Steam

Bitcoin surged past $98,000 for the first time on Thursday, extending a near-daily run of record highs that began after the U.S. presidential election. (All figures are in U.S. dollars.) The cryptocurrency has climbed more than 40% in roughly two weeks, bringing it to the brink of $100,000 as investor demand stays strong despite bitcoin’s well-known volatility.

Cryptocurrencies and related products, including crypto exchange-traded funds, have rallied in part because the incoming U.S. administration is widely viewed as more crypto-friendly than the previous one. As of 8:30 a.m. ET on Nov. 21, bitcoin traded at $97,466 after reaching an intraday high of $98,349, according to CoinDesk.

Still, crypto markets remain unpredictable. While some analysts are optimistic about further gains, others warn of substantial downside risk. Below is a concise primer on what is driving the rally, the risks involved and the environmental concerns tied to crypto mining.

Crypto basics

In simplest terms, cryptocurrency is digital money that operates on decentralized networks. Transactions are recorded on a blockchain, a distributed ledger that does not rely on a single central authority or government for validation. Bitcoin, launched in 2009, is the oldest and largest cryptocurrency by market value, but alternatives such as ethereum, tether and dogecoin have also attracted significant attention.

Some investors treat crypto as a form of digital alternative to traditional assets. However, prices can be highly volatile and are influenced by broader market conditions, regulatory developments and changes in investor sentiment.

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Why are bitcoin and other crypto assets soaring?

A major catalyst for the recent rally has been the outcome of the U.S. election and expectations for friendlier policy toward digital assets. Former President Trump, who previously expressed skepticism about crypto, has more recently positioned himself as a pro-crypto advocate—pledging to make the U.S. a global hub for crypto activity and suggesting policies such as a strategic bitcoin reserve. His public engagement with the crypto community and new private ventures have bolstered optimism among industry participants.

Market participants also welcomed the prospect of regulatory changes, given that current regulators—including the Securities and Exchange Commission under its recent leadership—have emphasized stricter oversight of the industry.

A man watches bitcoin prices on a large screen — _{An employee views crypto prices at an exchange in South Korea. Photo by Ahn Young-joon / AP Photo.}

Institutional demand has also played a significant role. The approval and rollout of spot bitcoin ETFs in the U.S. earlier this year created an easier on-ramp for investors to gain exposure to bitcoin, and inflows into those ETFs have been a key driver of recent returns. Citi analysts noted that spot ETF inflows have substantially contributed to bitcoin’s price performance and that inflows accelerated in the days after the election.

Another structural factor is bitcoin’s periodic “halving” events, the most recent of which occurred in April. Halving reduces the reward miners receive for validating transactions, cutting the production rate of new bitcoins in half. With fewer new coins entering circulation, some analysts argue that sustained demand can create a supply-driven price boost over time.

What are the risks of crypto?

Cryptocurrency markets can move sharply in both directions. Bitcoin’s history illustrates those swings: from just over $5,000 at the start of the COVID-19 pandemic to nearly $69,000 in November 2021, then a steep decline amid aggressive interest-rate hikes and the collapse of the FTX exchange in late 2022, which briefly pushed bitcoin below $17,000.

Investors returned as inflation cooled and as spot ETFs offered new access points, but experts continue to advise caution—especially for retail investors with limited capacity for loss. Crypto trading operates 24/7 and is sensitive to macroeconomic trends, regulatory announcements and shifts in market liquidity.

What about the climate impact?

Bitcoin and many other cryptocurrencies are minted through a process called mining that consumes substantial electricity. The environmental footprint depends heavily on the energy sources used by miners. Research cited by the United Nations University and the journal Earth’s Future estimated that bitcoin mining in 2020–2021 across 76 countries produced a carbon footprint comparable to burning large amounts of coal or operating many natural gas–fired power plants, with coal, natural gas and hydropower among the dominant sources.

Industry observers point out that the mix of energy sources for mining can shift over time, and some mining operations are increasing their use of low-carbon and renewable energy. Nonetheless, energy consumption and emissions remain central concerns for regulators, investors and the public.

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