Bitcoin's price attained a record high of $100,000 on Wednesday, fueled by a significant increase in demand following an election resulting in a pro-cryptocurrency political climate, particularly with the election of President-elect Donald Trump. Since November 5th, bitcoin's value has appreciated by over 45%, more than doubling year-to-date.

Reaching the six-figure threshold marks another significant achievement for a digital currency that originated 15 years ago from a brief white paper authored by the enigmatic Satoshi Nakamoto. The concepts outlined in that document have led to the development of a vast technological ecosystem focused on peer-to-peer transactions, encompassing hundreds of other digital tokens, NFTs, and various trading platforms.

However, the cryptocurrency landscape remains contentious. Many cryptocurrencies, including bitcoin, have been linked to a rise in cybercrimes and scams, resulting in billions of dollars in consumer losses last year, according to the FBI.

This situation has led current federal regulators to adopt a cautious stance towards many cryptocurrency initiatives.

In light of the recent election, bitcoin supporters are optimistic that a more favorable pro-crypto perspective will emerge in Washington, potentially easing stringent regulations and enforcement on digital tokens. This shift could also facilitate bitcoin investments by traditional financial institutions and enhance the profitability of bitcoin mining through increased energy production.

Trump, who previously expressed skepticism towards cryptocurrency, has shown interest in establishing a U.S. bitcoin "strategic reserve," similar to those for gold and oil. During his third presidential campaign, he attended this year's Bitcoin Conference in Nashville, Tennessee, where he commended the crypto community for its innovation and pledged to position the U.S. as the global leader in cryptocurrency if elected.

Experts caution that bitcoin's price fluctuations are notoriously unpredictable, a trend that is unlikely to change regardless of the political landscape.

The persistent increase in prices over time is indisputable. Recently, a significant portion of the demand driving this growth has been directed towards exchange-traded funds (ETFs) that track bitcoin's price, particularly those managed by major financial institutions, with BlackRock's iShares Bitcoin Trust ETF being the largest in this category.

In a recent interview, Jay Jacobs, BlackRock's U.S. head of thematic and active ETFs, noted that since its launch in January, the IBIT ETF has surged to a valuation exceeding $45 billion, with a remarkable increase of $4.1 billion occurring in just the last month.

Jacobs also pointed out that the electoral victories of candidates more favorable to cryptocurrency, along with a growing number of investors from various wealth brackets globally, are beginning to see bitcoin as a safeguard against geopolitical uncertainties, particularly currency devaluations driven by inflation.

Exchange-traded funds (ETFs) offer investors a streamlined approach to participating in bitcoin's price volatility; consequently, Jacobs anticipates widespread cryptocurrency adoption is imminent. He notes a growing interest in the cryptocurrency market among institutional and wealth management firms, although he acknowledges that comprehensive market understanding will require a sustained educational effort.