Bitcoin ticks closer to $100,000 in extended surge following US elections

NEW YORK (AP) — Bitcoin extended its streak of record highs after ticking above $99,000 for the first time overnight. The cryptocurrency has rocketed more than 40% in just two weeks.

Now, bitcoin is at the doorstep of $100,000, just two years after dropping below $17,000 following the collapse of crypto exchange FTX. The dramatic rally arrives as industry players expect the incoming Trump administration to bring a more “crypto-friendly” approach toward regulating the digital currency.

Bitcoin was trading at $98,882 early Friday, according to CoinDesk.

As with everything in the volatile crypto markets, the future is impossible to know. And while some are bullish, other experts continue to warn of investment risks.

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, tether and dogecoin have also 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.

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

Crypto industry players have welcomed Trump’s victory, 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.

Trump, who was once a crypto skeptic, recently 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.

How of this will actually pan out — and whether or not Trump will successfully act quickly on these promises — has yet to be seen.

“This is not necessarily a short-term story, it’s likely a much longer-term story," Citi macro strategist David Glass told The Associated Press last week. "And there is the question of how quickly can U.S. crypto policy make a serious impact on (wider adoption).”

Adam Morgan McCarthy, a research analyst at Kaiko, thinks the industry is craving “just some sort of clarity.” Much of the approach to regulating crypto in the past has been “enforcement based,” he notes, which has been helpful in weeding out some bad actors — but legislation might fill in other key gaps.

Gary Gensler, who as head of the Securities and Exchange Commission under President Joe Biden has led a U.S. government’s crackdown on the crypto industry, penalized a number of crypto companies for violating securities laws. Gensler announced Thursday that he would step down as SEC chair on Jan. 20, Inauguration Day.

Despite crypto’s recent excitement around Trump, McCarthy said that 2024 has already been a “hugely consequential year for regulation in the U.S.” — pointing to January’s approval of spot bitcoin ETFs, for example, which mark a new way to invest in the asset.

Spot ETFs have been the dominant driver of bitcoin for some time now — but, like much of the crypto’s recent momentum, saw record inflows postelection. According to Kaiko, bitcoin ETFs recorded $6 billion in trade volume for the week of the election alone.

In April, bitcoin also saw its fourth “halving” — a preprogrammed event that impacts production by cutting the reward for mining, or the creation of new bitcoin, in half. In theory, if demand remains strong, some analysts say this “supply shock” can also help propel the price long term. Others note it may be too early to tell.

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, during high demand for technology assets, but later crashed during an aggressive series of Federal Reserve rate hikes. And in 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. But experts still stress caution, especially for small-pocketed investors. And lighter regulation from the coming Trump administration could mean less guardrails.

While its been a big month for crypto — and particularly bitcoin, which McCarthy notes has set record highs for ten of the last 21 days — there's always risk for “correction," or seeing prices fluctuate back down some. Some assets may also have more restrictions than others.

“I would say, keep it simple. And don’t take on more risk than you can afford to," McCarthy said — adding that there isn't a “magic eight ball” to know for certain what comes next.

Assets like bitcoin are produced through a process called “mining,” which consumes a lot of energy. 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

FILE - Securities and Exchange Commission Chair Gary Gensler testifies during a Senate Banking Committee Hybrid hearing on 'Oversight of the U.S. Securities and Exchange Commission," on Sept. 12, 2023, on Capitol Hill in Washington. (AP Photo/Mariam Zuhaib, File)

FILE - Securities and Exchange Commission Chair Gary Gensler listens during a Senate Banking Committee Hybrid hearing on 'Oversight of the U.S. Securities and Exchange Commission," on Sept. 12, 2023, on Capitol Hill in Washington. (AP Photo/Mariam Zuhaib, File)

Employees pass by an electronic signboard displaying the prices of Bitcoin and other cryptocurrencies at the lounge of Bithumb cryptocurrency exchange in Seoul, South Korea, Thursday, Nov. 21, 2024. (AP Photo/Ahn Young-joon)

An employee takes a picture of an electronic signboard displaying the prices of Bitcoin and other cryptocurrencies at the lounge of Bithumb cryptocurrency exchange in Seoul, South Korea, Thursday, Nov. 21, 2024. (AP Photo/Ahn Young-joon)

An employee watches an electronic signboard displaying the prices of Bitcoin and other cryptocurrencies at the lounge of Bithumb cryptocurrency exchange in Seoul, South Korea, Thursday, Nov. 21, 2024. (AP Photo/Ahn Young-joon)

TEMPE, Ariz. (AP) — Cam Skattebo was the workhorse once again for Arizona State, carrying the Sun Devils on his back by rushing for 147 yards and three touchdowns. His reward was a well-earned celebration with fans.

Twice.

Skattebo had another big game, Sam Leavitt threw for 247 yards and No. 21 Arizona State held on in the final minutes to beat No. 14 BYU 28-23 on Saturday. The tight finish was capped by a bizarre final minute, including a premature field storming by Arizona State’s fans that took roughly 15 minutes to clear before BYU heaved a final Hail Mary that fell incomplete.

“We won the football game,” second-year coach Kenny Dillingham said. “We beat another ranked team at Mountain America Stadium. So this is all about the guys. These guys battled, these guys fought and found a way to win. Whatever happened at the end, it happened.

“You know what? We got to rush the field twice, how about that?”

Javan Robinson's interception with 1:04 left looked as if it would close it out for Arizona State, but the Sun Devils stalled on the ensuing offensive drive. Leavitt threw the ball out of bounds on fourth down and Arizona State's student section — believing the game was over — rushed the field.

But officials ruled there was 1 second left and BYU had a shot at the Hail Mary attempt from its own 49. BYU coach Kalani Sitake argued for an unsportsmanlike conduct penalty, which would have moved the ball closer to the end zone, but didn't get it.

Thousands of fans had to be cleared from the field before Jake Retzlaff’s deep pass fell incomplete a few yards short of the end zone.

“This game didn't come down to that,” Sitake said. "That's just the game. This ref crew was awesome, they communicated well with me. We had a chance to snap the ball from the 49. We would have loved to have it closer, but that's just the game. The game wasn't won or lost in that moment.

“It was the 59 minutes and 59 seconds before.”

The surprising Sun Devils (9-2, 6-2 Big 12) have won four straight and now find themselves on the fringe of the College Football Playoff discussion. BYU (9-2, 6-2) has lost two in a row, all but dashing its CFP hopes.

Arizona State took a 28-9 lead when Leavitt hit a wide-open Xavier Guillory for a 61-yard touchdown with 2:06 left in the third quarter, but BYU rallied, cutting the margin to 28-17 less than 90 seconds later when Retzlaff hit Jojo Phillips for a 21-yard score.

After a defensive stop, BYU scored again on Keelan Marion's 1-yard touchdown run with 8:44 left. The Cougars' 2-point conversion attempt failed, leaving the score at 28-23.

Retzlaff threw for 297 yards and a touchdown, but also had two costly interceptions. Darius Lassiter caught five passes for 103 yards.

Arizona State started the game with a defensive stop on fourth-and-5 at midfield and responded with a bruising 10-play, 54-yard drive, capped by Skattebo's 3-yard touchdown run. The 215-pound back had 44 yards on seven carries.

“The boys have fought every day,” Skattebo said. “We didn’t blink when they started scoring points.”

The Sun Devils and Skattebo were back at it in the second quarter, putting together a methodical 12-play, 95-yard march for the team's longest touchdown drive of the season.

Skattebo finished it off with a 4-yard run, slicing through the right side of the offensive line for a 14-0 lead.

Arizona State stayed aggressive with a perfectly executed onside kick that was recovered by Plas Johnson. Six plays later, Skattebo broke through the line again and sprinted 23 yards for his third touchdown of the first half.

BYU: It's been a deflating few weeks for the Cougars, who were in command of the Big 12 when the calendar turned to November.

Arizona State: The Sun Devils added to their unexpected rise with the win over the Cougars. Skattebo, Leavitt and receiver Jordyn Tyson continued their stellar seasons while the defense played extremely well for a second straight week. Arizona State was 6-0 at home this season.

Arizona State likely will jump ahead of BYU in the rankings, but the question is by how much. The Sun Devils are probably still a long shot to make the CFP but there's definitely hope.

BYU: Hosts Houston next Saturday.

Arizona State: On the road at Arizona next Saturday.

Get poll alerts and updates on the AP Top 25 throughout the season. Sign up here. AP college football: https://apnews.com/hub/ap-top-25-college-football-poll and https://apnews.com/hub/college-football

Arizona State fans run on the field following a 28-23 win over BYU in an NCAA college football game Saturday, Nov. 23, 2024, in Tempe, Ariz.

Arizona State defensive back Shamari Simmons, center, celebrates with fans following a 28-23 win over BYU in an NCAA college football game Saturday, Nov. 23, 2024, in Tempe, Ariz. (AP Photo/Ross D. Franklin)