Bitcoin has surpassed the $100,000 mark as the post-election rally continues. What's next?

NEW YORK (AP) — Bitcoin topped $100,000 for the first time this week as a massive rally in the world's most popular cryptocurrency, largely accelerated by the election of Donald Trump, rolls on.

The cryptocurrency officially to rose six figures Wednesday night, just hours after the president-elect said he intends to nominate cryptocurrency advocate Paul Atkins to be the next chair of the Securities and Exchange Commission.

Bitcoin has soared since Trump won the U.S. presidential election on Nov. 5. The asset climbed from $69,374 on Election Day, hitting as high as $103,713 Wednesday, according to CoinDesk. And the latest all-time high arrives just two years after bitcoin dropped below $17,000 following the collapse of crypto exchange FTX.

Bitcoin fell back below the $100,000 by Thursday afternoon, sitting above $99,000 by 4 p.m. ET. Even amid a massive rally that has more than doubled the value of bitcoin this year, some experts continue to warn of investment risks around the asset, which has quite a volatile history.

Here’s what you need to know.

Cryptocurrency has been around for a while now. But chances are you’ve heard about it more and more over the last few years.

In basic terms, cryptocurrency is digital money. This kind of currency is designed to work through an online network without a central authority — meaning it’s typically not backed by any government or banking institution — and transactions get recorded with technology called a blockchain.

Bitcoin is the largest and oldest cryptocurrency, although other assets like ethereum, XRP, tether and dogecoin have also gained popularity over the years. Some investors see cryptocurrency as a “digital alternative” to traditional money, but most daily financial transactions are still conducted using fiat currencies such as the dollar. Also, bitcoin can be very volatile, with its price reliant on larger market conditions.

A lot of the recent action has to do with the outcome of the U.S. presidential election.

Trump, who was once a crypto skeptic, has pledged to make the U.S. “the crypto capital of the planet” and create a “strategic reserve” of bitcoin. His campaign accepted donations in cryptocurrency and he courted fans at a bitcoin conference in July. He also launched World Liberty Financial, a new venture with family members to trade cryptocurrencies.

On Thursday morning, hours after bitcoin surpassed the $100,000 mark, Trump congratulated “BITCOINERS” on his social media platform Truth Social. He also appeared to take credit for the recent rally, writing, “YOU’RE WELCOME!!!”

Top crypto players welcomed Trump’s election victory last month, in hopes that he would be able to push through legislative and regulatory changes that they’ve long lobbied for — which, generally speaking, aim for an increased sense of legitimacy without too much red tape. And the industry has made sizeable investments along the way. Back in August, Public Citizen, a left-leaning consumer rights advocacy nonprofit, reported finding that crypto-sector corporations spent more than $119 million in 2024 to back pro-crypto candidates across federal elections.

Trump made his latest pro-crypto move when he announced his plans Wednesday to nominate Atkins to chair the SEC. Atkins was an SEC commissioner during the presidency of George W. Bush. In the years since leaving the agency, Atkins has made the case against too much market regulation. He joined the Token Alliance, a cryptocurrency advocacy organization, in 2017.

Under current chair Gary Gensler, who will step down when Trump takes office, the SEC has cracked down on the crypto industry — penalizing a number of companies for violating securities laws. Gensler has also faced ample criticism from industry players in the process.

One crypto-friendly move the SEC did make under Gensler was the approval in January of spot bitcoin ETFs, or exchange trade funds, which allow investors to have a stake in bitcoin without directly buying it. The spot ETFs were the dominant driver of bitcoin's price before Trump's win — but, like much of the crypto’s recent momentum, saw record inflows postelection.

Bitcoin surpassing the coveted $100,000 mark has left much of the crypto world buzzing.

“What we’re seeing isn’t just a rally — it’s a fundamental transformation of bitcoin’s place in the financial system,” Nathan McCauley, CEO and co-founder of crypto custodian Anchorage Digital, said in a statement — while pointing to the growth of who's entering the market, particularly with rising institutional adoption.

Still, others note that the new heights of bitcoin's price don't necessarily mean the asset is going mainstream. The $100,000 level is “merely a psychological factor and ultimately just a number,” Dan Coatsworth, investment analyst at British investment company AJ Bell, wrote in a Thursday commentary.

That being said, bitcoin could keep climbing to more and more all-time highs, particularly if Trump makes good on his promises for more crypto-friendly regulation once in office. If Trump actually makes a bitcoin reserve, for example, supply changes could also propel the price forward.

“It is hard to overstate the magnitude of the change in Washington’s attitude towards crypto post-election,” Matt Hougan, chief investment officer at Bitwise Asset Management, said via email Thursday, reiterating that prices could keep rising if trends persist. “There is a lot more demand than there is supply, and that’s usually a pretty good recipe for success.”

Still, as with everything in the volatile cryptoverse, the future is never promised. Worldwide regulatory uncertainties and environmental concerns around bitcoin “mining" — the creation of new bitcoin, which consumes a lot of energy — are among factors that analysts like Coatsworth note could hamper future growth. And, as still a relatively young asset with a history of volatility, longer-term adoption has yet to be seen through.

Today’s excitement around bitcoin may make many who aren’t already in the space want to get in on the action. For those in a position to invest, Hougan says it's not too late — noting that bitcoin is still early in its development and most institutional investors “still have zero exposure.”

At the same time, Hougan and others maintain that it's important to tread cautiously and not bite off more than you can chew. Experts continue to stress caution around getting carried away with crypto “FOMO,” or the fear of missing out, especially for small-pocketed investors.

“A lot of people have got rich from the cryptocurrency soaring in value this year, but this high-risk asset isn’t suitable for everyone,” Coatsworth noted Thursday. “It’s volatile, unpredictable and is driven by speculation, none of which makes for a sleep-at-night investment.”

In short, history shows you can lose money in crypto as quickly as you’ve made it. Long-term price behavior relies on larger market conditions. Trading continues at all hours, every day.

Coatsworth points to recent research from the Bank for International Settlements, a Switzerland-based global organization of central banks, which found that about three-quarters of retail buyers on crypto exchange apps likely lost money on their bitcoin investments between 2015 and 2022.

At the start of the COVID-19 pandemic, bitcoin stood at just over $5,000. Its price climbed to nearly $69,000 by November 2021, during high demand for technology assets, but later crashed during an aggressive series of rate hikes by the Federal Reserve. And the late-2022 collapse of FTX significantly undermined confidence in crypto overall, with bitcoin falling below $17,000.

Investors began returning in large numbers as inflation started to cool — and gains skyrocketed on the anticipation and then early success of spot ETFs, and again, now the post-election frenzy. But lighter regulation from the coming Trump administration could also mean less guardrails.

This story has been corrected to refer to Anchorage Digital as a crypto custodian, not a crypto asset manager.

FILE - Republican presidential nominee former President Donald Trump speaks at the Bitcoin 2024 Conference July 27, 2024, in Nashville, Tenn. (AP Photo/Mark Humphrey, File)

FILE - Bitcoin logos are displayed at the Inside Bitcoins conference and trade show on April 7, 2014, in New York. Bitcoin has topped the $100,000 mark. (AP Photo/Mark Lennihan, File)

FILE - Republican presidential candidate former President Donald Trump speaks at the Bitcoin 2024 Conference Saturday, July 27, 2024, in Nashville, Tenn. (AP Photo/Mark Humphrey, File)

FILE - Republican presidential candidate former President Donald Trump speaks at the Bitcoin 2024 Conference Saturday, July 27, 2024, in Nashville, Tenn. (AP Photo/Mark Humphrey, File)

MELBOURNE, Australia (AP) — It's not often that a man is able to follow up his first Grand Slam title by repeating as the champion at the same tournament a year later, which is what Jannik Sinner will be trying to do Sunday when he faces Alexander Zverev in the Australian Open final.

The last time it happened was nearly 20 years ago: Rafael Nadal accomplished that sort of repeat at the 2005 and 2006 French Opens. He turned out OK.

For the No. 1-ranked Sinner, the past year also included the doping case that is still unresolved. He tested positive for a trace amount of an anabolic steroid twice in March, which didn't become public until his exoneration was announced shortly before the start of play at the U.S. Open — which he won. There is a hearing in the World Anti-Doping Agency's appeal scheduled in April.

“He finds playing tennis matches to be his safe place. That’s where he can go and do his thing and feel like this is what he knows, this is what he understands, what is what he’s good at. It become a home for him to step on to the court and play tennis,” said one of Sinner's two coaches, Darren Cahill, who will leave the team after this season.

“There's been a lot of pressure around him for the last nine months now, since April last year. He deals with it as well as anybody that I’ve ever seen deal with pressure," Cahill said. "He’s an amazing young man that’s been able to put that to one side. ... He has a clear conscience.”

Over these two weeks in Australia, Sinner also dealt with health issues. He got medical attention when he felt dizzy and had an upset stomach during his fourth-round victory against No. 13 Holger Rune, then cramping late in his semifinal win over No. 21 Ben Shelton.

“There's a lot of things going on, on and off the court. I try to isolate myself a little bit, trying to be myself on the court. Sometimes it’s a bit easier. There are days where it’s easier, days where I struggle a little bit more,” said Sinner, a 23-year-old from Italy who can become the youngest man to win consecutive championships at the Australian Open since Jim Courier in 1992-93.

“I'm just happy to put myself in this position again,” Sinner said, “to play for a big trophy again.”

Standing in his way is No. 2 Zverev, a 27-year-old from Germany who is 0-2 in previous major finals, losing both in five sets — to Dominic Thiem at the 2020 U.S. Open after taking the first two sets and holding a match point, and to Carlos Alcaraz at last year's French Open after leading by two sets to one. Zverev won his semifinal in Paris last June hours after an out-of-court settlement was announced in Berlin that ended a trial stemming from an ex-girlfriend’s accusation of assault during a 2020 argument.

Zverev got his spot in the Australian Open final — play is scheduled to start at 7:30 p.m. local time (3:30 a.m. EST) on Sunday — when 24-time major champion Novak Djokovic stopped playing because of a leg injury just one set into their semifinal on Friday.

This will be the first title match at Rod Laver Arena between the men seeded 1 and 2 since No. 1 Djokovic defeated No. 2 Nadal in 2019.

“Jannik has been the best player in the world for the past 12 months,” Zverev said. “There’s no doubt about it.”

That is not really up for debate.

Sinner went 73-6 in 2024 with eight titles, the most on the ATP Tour since 2016, and is currently on a 20-match winning streak that began late last season.

He is listed as a -275 money-line favorite against Zverev, according to BetMGM Sportsbook.

But don't expect Sinner to proclaim that status or be willing to talk about himself in glowing terms.

“Back of my head, I also know that I’m 23 years old, and I am not perfect, no? I know that I have things still to improve. I have certain areas where I can get better. That’s why we work,” Sinner said. “Every day is a big challenge. Every day you have a different opponent. You try to understand what’s happening. Sometimes you have some issues and then trying to understand that whatever works best for that day and trying to go for it.”

Alexander Zverev of Germany plays a forehand return to Novak Djokovic of Serbia during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Friday, Jan. 24, 2025. (AP Photo/Ng Han Guan)

Jannik Sinner of Italy plays a backhand return to Ben Shelton of the U.S. during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Friday, Jan. 24, 2025. (AP Photo/Ng Han Guan)

Alexander Zverev of Germany serves to Novak Djokovic of Serbia during their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Friday, Jan. 24, 2025. (AP Photo/Ng Han Guan)

Jannik Sinner of Italy receives medical treatment during his semifinal match against Ben Shelton of the U.S. at the Australian Open tennis championship in Melbourne, Australia, Friday, Jan. 24, 2025. (AP Photo/Ng Han Guan)

Jannik Sinner of Italy signs autographs after defeating Ben Shelton of the U.S. in their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Friday, Jan. 24, 2025. (AP Photo/Manish Swarup)

Alexander Zverev, right, of Germany embraces Novak Djokovic of Serbia after Djokovic retired from their semifinal match at the Australian Open tennis championship in Melbourne, Australia, Friday, Jan. 24, 2025. (AP Photo/Ng Han Guan)

Jannik Sinner of Italy reacts during his semifinal match against Ben Shelton of the U.S. at the Australian Open tennis championship in Melbourne, Australia, Friday, Jan. 24, 2025. (AP Photo/Ng Han Guan)