The world largest cryptocurrency continues its enormous run, which was primarily fueled by Donald Trump’s win, Bitcoin Cross 100k Dollar for the first time this week.
Following the announcement by the president-elect that cryptocurrency supporter Paul Atkins will be the new chair of the Securities and Exchange Commission, Bitcoin skyrocketed.
Since Election Day on November 5, Bitcoin has jumped from $69,374 to $103,713 on December 4. Just two years ago, Bitcoin plunged below $17,000 after the FTX crypto exchange collapsed.
On December 5, Bitcoin dipped slightly below $103,000. However, Bitcoin futures are still up over 4%. Despite this year’s massive rally, which has more than doubled Bitcoin’s value, experts continue to caution about the risks of investing in cryptocurrencies. Here’s all to know!
What’s The Cryptocurrency?
Cryptocurrency has been around for a while, but you’ve probably heard more about it in recent years. Simply put, cryptocurrency is digital money. It works online without relying on a central authority like a government or bank. Instead, transactions are tracked using blockchain technology.
Some people view cryptocurrency as a digital alternative to traditional money. However, most daily financial transactions still use regular currencies like the dollar. Bitcoin’s value can be very unpredictable because it depends on overall market conditions.
Why Did Bitcoin Cross 100K Dollar at this particular point in time?
The U.S. presidential election has brought significant attention to cryptocurrency. Donald Trump, once skeptical of crypto, now plans to make the U.S. “the crypto capital of the planet” and create a “strategic reserve” of bitcoin. His campaign accepted cryptocurrency donations, and he connected with fans at a Bitcoin conference in July. He also launched a new family venture, World Liberty Financial, to trade cryptocurrencies.
Crypto industry leaders are optimistic about Trump’s victory, hoping he will introduce laws and regulations that boost the industry’s legitimacy without adding excessive restrictions. On December 4 (the day when Bitcoin Cross 100k Dollar), Trump announced his intention to nominate Paul Atkins as the next chair of the Securities and Exchange Commission (SEC). Atkins has long argued against heavy market regulations. He also joined the Token Alliance, a cryptocurrency advocacy group, in 2017.
Under the current SEC chair, Gary Gensler, the agency has cracked down on crypto companies for violating securities laws. However, Gensler has faced criticism for his strict and “hostile” stance toward crypto, with industry leaders like Robinhood’s chief legal officer openly opposing his approach.
One crypto-friendly move during Gensler’s tenure was the approval of spot bitcoin ETFs in January. Traders may get a peek at Bitcoin through such investments without actually buying any of it. Spot ETFs significantly boosted Bitcoin’s price before the election, and their popularity surged even further afterward, contributing to crypto’s recent momentum.
What Does Bitcoin Value Bursting 100k Dollar Indicate?
Bitcoin’s price recently skyrocketed (Bitcoin Cross 100k Dollar), sending waves of excitement through the crypto world.
“This isn’t just a rally; it’s a shift in how Bitcoin fits into the financial system,” says Nathan McCauley, CEO and co-founder of Anchorage Digital, a crypto custodian. He highlights the growing involvement of institutional investors as a key factor driving this transformation.
However, some experts caution against reading too much into the milestone. Dan Coatsworth, an investment analyst at a British firm, points out, “The $100,000 mark is just a psychological barrier — it’s simply a number.”
Will it keep climbing even more?
Even so, Bitcoin’s upward trajectory could continue. Analysts suggest prices might climb higher, especially if Donald Trump follows through on his promises to introduce more crypto-friendly regulations during his presidency. If the U.S. creates a Bitcoin reserve, for instance, reduced supply could push prices even further.
“The change in Washington’s attitude toward crypto post-election is monumental,” says Matt Hougan, chief investment officer at Bitwise Asset Management. He believes that the growing demand and limited supply create the perfect conditions for Bitcoin’s success.
Despite the optimism, challenges remain. Global regulatory uncertainties and concerns over the environmental impact of Bitcoin mining — which uses vast amounts of energy — could slow its growth. Coatsworth also notes that as a young and volatile asset, Bitcoin still needs to prove its long-term potential.
While Bitcoin’s rise is impressive, its future remains unpredictable in the ever-changing crypto-verse.
Is It Too Late to Invest After Bitcoin Cross 100K Dollar?
Crypto investments can make or lose money just as fast. Long-term prices depend on broader market conditions, and trading goes on 24/7.
When COVID-19 began, Bitcoin was priced at just over $5,000. By November 2021, it surged to nearly $69,000 due to high demand for tech assets. However, it crashed as the Federal Reserve raised interest rates aggressively. The FTX collapse in late 2022 dealt another blow, shaking confidence in crypto and pushing Bitcoin below $17,000.
What are the risks regarding World Largest Cryptocurrency?
Investors returned in large numbers as inflation eased, driving gains higher with the buzz and early success of spot ETFs. However, experts urge caution, especially for small investors. The lighter regulations expected from the incoming Trump administration could reduce safeguards.
“Keep it simple and only take risks you can handle,” said Adam Morgan McCarthy, a research analyst at Kaiko. He emphasized that no one can predict the future with certainty.
Frequently Asked Questions (FAQs)
When Did Bitcoin Cross 100k Dollar?
Donald Trump’s return to the White House and the assumption that a few of his administration appointments would exhibit more regulatory leniency towards Bitcoin than their counterparts led to the Bitcoin Value Bursting 100k Dollars for the first ever time on Wednesday, December 4.
What is Bitcoin Price in December 2024?
The Bitcoin price in December 2024 has just hit the 100K mark. It was between 95K $ to 97K $ at the start of December before reaching 100K $ on December 4.
What is Bitcoin Price Today?
The Bitcoin price today has been around 98K $ with just a little bit of fluctuation. A slight drop has been apparent as it reached 100K $ on Dec 4.