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Bitcoin hovers near $100,000 as post-election highs continue. Here’s what to know.
Bitcoin topped $98,000 for the first time Thursday, extending a streak of almost daily all-time highs since the U.S. presidential election. The cryptocurrency has rocketed more than 40% in just two weeks.
Now, bitcoin is at the doorstep of $100,000 and investors do not appear to be fazed by gravity or any cautionary tales of the cryptocurrencies history of volatility.
Cryptocurrencies and related investments like crypto exchange traded funds have rallied because the incoming Trump administration is expected to be more “crypto-friendly” than the outgoing Biden administration.
As of 11:02 a.m. ET, bitcoin traded at $96,747 after rising as high as $98,349 according to CoinDesk.
Yet cryptocurrency markets remain a wild place and what comes next is impossible to know. And while some are bullish, other experts are warning of investment risks.
Here’s what you need to know.
Cryptocurrency has been around for a while now but have come under the spotlight in recent 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, Tether and Dogecoin have gained popularity over the years. Some investors see cryptocurrency as a “digital alternative” to traditional money — but it can be very volatile, with its price reliant on larger market conditions.
Trump’s election win boosts crypto
A lot of the recent action has to do with the outcome of the U.S. election.
President-elect Donald Trump, who was once critical of digital currencies, pledged during his campaign against Vice President Kamala Harris to make the U.S. the “crypto capital of the planet” and to create a bitcoin “strategic reserve.” 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.
Crypto industry players welcomed Trump’s victory, in hopes that he would be able to push through legislative and regulatory changes that they’ve long lobbied for. Trump also had promised that, if elected, he would remove the chair of the Securities and Exchange Commission, Gary Gensler, who has been leading the U.S. government’s crackdown on the crypto industry and repeatedly called for more oversight.
Spot bitcoin ETFs
Digital assets like bitcoin had posted notable gains in the months ahead of the election, mostly due to the early success of a new way to invest in the asset: spot bitcoin ETFs, which were approved by U.S. regulators in January.
A spot bitcoin ETF allows investors to gain direct exposure to bitcoin without holding it. Unlike regular bitcoin ETFs, in which bitcoin futures contracts are the underlying asset, bitcoins are the underlying asset of a spot bitcoin ETF. Each spot bitcoin ETF is managed by a firm that issues shares of its own bitcoin holdings purchased through other holders or through an authorized cryptocurrency exchange. The shares are listed on a traditional stock exchange.
Inflows into spot ETFs, “have been the dominant driver of Bitcoin returns from some time, and we expect this relationship to continue in the near-term,” Citi analysts David Glass and Alex Saunders wrote in a research note two weeks ago. They added that spot crypto ETFs saw some of their largest inflows on record in the days following the election.
Bitcoin volatility
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.
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, in a time marked by high demand for technology assets. Bitcoin later crashed during an aggressive series of Federal Reserve rate hikes aimed at curbing inflation. The collapse of FTX in late 2022 significantly undermined confidence in crypto overall and bitcoin fell 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. Experts still stress caution, especially for small-pocketed investors.
How bitcoin mining works
Assets like bitcoin are produced through a process called “mining,” which consumes a lot of energy. And operations relying on pollutive sources have drawn particular concern over the years.
Recent research published by the United Nations University and Earth’s Future journal found that the carbon footprint of 2020-2021 bitcoin mining across 76 nations was equivalent to the emissions from burning 84 billion pounds of coal or running 190 natural gas-fired power plants. Coal satisfied the bulk of bitcoin’s electricity demands (45%), followed by natural gas (21%) and hydropower (16%).
Environmental impacts of bitcoin mining boil largely down to the energy source used. Industry analysts have maintained that clean energy has increased in use in recent years, coinciding with rising calls for climate protections.
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Holiday spending this year is expected to tick up from what it was in 2023. And it’s not like last year was exactly cheap, with consumers forecasted to spend 7% more than they did then, bringing the expected new average to around $2,100. But for those who are expected to cover these via a credit card, that could be problematic.
The average American has around $8,000 in credit card debt currently. With the average credit card interest rate recently surging to 23%, approximately – a record high – that means many Americans are already struggling with debt. And that’s before the bulk of their holiday shopping has even been completed.
Against this backdrop, many credit card users may be considering their debt relief options. One effective way to reduce what you owe is credit card debt forgiveness. But should you apply for this option before the holidays or are you better served by waiting until January? That’s what we’ll explore below.
See how much of your debt a forgiveness program could help with here now.
Should you apply for credit card debt forgiveness before the holidays?
The short answer is: It depends. If you’re in a position where you’ve exhausted all of your alternative debt relief options and can’t repay your credit card debt, then forgiveness could be worth exploring immediately, including before the holiday season kicks off. Waiting to ask for relief could be a costly mistake, particularly if you plan to increase your credit card spending during the season, as many Americans plan to do.
On the other hand, credit card debt forgiveness isn’t an overnight fix. It can take years to be effective and, even then, it will only likely erase somewhere between 30% to 50% of your outstanding balance. So it makes sense to pursue this option when you’re in a dire position – and when your spending can be legitimately curtailed. If you know that you need to increase your credit card debt, at least for November and December, it may be more beneficial to wait for a time when you can afford to stop swiping your card.
This all noted, every credit card user’s experience is different and there may be exceptions to this broad advice. If you’re unsure of which applies to you, it makes sense to first speak to a financial advisor for guidance. Consider speaking to a debt relief provider, too, although they will have a financial incentive to get you set up with a service. So keep that in mind when speaking to a representative.
Start exploring your credit card debt forgiveness options online today.
How to qualify for credit card debt forgiveness
Not everyone with a credit card balance can secure forgiveness. Users will need to qualify for help and, even then, it will take time to reduce what you owe (assuming you don’t add to it in the interim). Here are three important credit card debt forgiveness qualifications to know:
Minimum debt: Most credit card debt forgiveness servicers won’t work with you if your debt is under $7,500. In these cases, the debt is largely considered manageable and other alternative debt relief options may be more helpful. That said, if you’re burdened with a debt of $10,000 or more, credit card debt forgiveness could provide critical support.
Financial hardship: Is there a specific reason behind your inability to repay all that you’ve borrowed? If you’re able to demonstrate a financial hardship preventing you from paying anything – even minimum payments – you can boost your eligibility chances. Financial hardship examples include but are not limited to job losses and health issues.
Failure to pay: It may seem counterintuitive, but if you’ve already stopped making your credit card payments or are already in collections, this can help improve your qualification chances. This demonstrates a true inability to pay your bills, which many credit card debt forgiveness providers will want to see before agreeing to help.
The bottom line
Applying for credit card debt forgiveness is a personal decision, weighed heavily by your unique qualifications and financial situation. But if you need help and know that you can’t dig out of your financial hole, it doesn’t make sense to delay it, even with the pending holiday season. By taking action now you can start improving your credit and work toward regaining your financial freedom in the new year.
Learn more about credit card debt forgiveness here.
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With the holiday season just days away and, with it, the commencement of shopping, many Americans may be wondering about what to gift to family members and friends. This is a popular time for selling and buying gold, whether it be in the form of jewelry or just simple gold bars and coins. And even though the price has been elevated for much of 2024, it can still be affordable for many in the form of fractional gold.
That said, there are multiple benefits of gifting gold bars and coins, particularly during this upcoming holiday season. Below, we’ll break down three big benefits buyers should be aware of currently.
Start exploring your top gold options online now.
3 big benefits of gifting gold bars and coins this holiday season
Not sure if gold is worth giving now? Here are three reasons why it could be a smart gift:
Rising value
Despite a small drop in the price at the start of November, gold has been on a steady upward trend for much of 2024, breaking numerous price records throughout the year before surpassing the $2,700 mark at the end of October. Currently priced at $2,702.94 per ounce, according to American Hartford Gold, gold is positioned to break additional records, possibly before the holidays even begin.
Understanding the real potential of rising value, then, buyers would be well-served by gifting gold bars and coins today, even if they’re in a smaller, more affordable size. Waiting, however, could cause the price to become prohibitive. So start your holiday gold shopping sooner rather than later.
Get started with gold here today.
A tangible investment
You can invest in gold in multiple ways but gold bars and coins are one of the few tangible ways to do so. Gift receivers can hold them in their hands, inspect them and store them for safekeeping on their own. This feature is a major advantage compared to other, more opaque gold types like stocks, futures and ETFs. While you can, theoretically, gift those other gold investment types, too, only gold bars and coins can provide the same experience as other, more conventional gift types.
It’s easy to buy
Gold bars and coins aren’t like other hot holiday gift ideas. They’re ubiquitous and easy to purchase both online and in person. Big retailers like Costco and Walmart sell them in their stores and on their websites (and some even sell silver, too). So if you’re worried about your ability to be able to secure this sort of gift, don’t be. That said, as the holidays get closer, it’s possible retailers could sell out of these items (as Costco has in the past). So don’t wait until Christmas Eve to act, either.
The bottom line
There are scarce gift options this year that will come with a rising value, tangible and visible benefits and an easy ability to be purchased by shoppers. But gold bars and coins offer all of those benefits right now. So if you want to add a shiny precious metal to your shopping list this holiday season, gold may be the best one to consider.
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