With Bitcoin reaching around $103,400 before experiencing a slight decline, analysts examine the implications of this milestone, particularly in light of potential regulatory changes under the incoming administration.
What’s Next for Bitcoin After Surpassing the $100k Mark?
What’s Next for Bitcoin After Surpassing the $100k Mark?
Bitcoin's surge past the $100,000 threshold prompts questions about its future trajectory as market volatility persists.
As the world’s largest cryptocurrency, Bitcoin has blasted through the much-anticipated barrier of $100,000, sparking discussions about its potential movement and infamous volatility. The crypto skyrocketed to roughly $103,400 shortly after 04:00 GMT on Thursday, although it dipped slightly afterward. Investment analyst Dan Coatsworth, from AJ Bell, characterized this moment as “magical” for Bitcoin and noted its connection to the recent U.S. presidential election victory of Donald Trump. The president-elect celebrated the achievement on social media, expressing congratulations to Bitcoin investors, which fueled further interest in the digital asset.
Trump's announcement of former SEC commissioner Paul Atkins as a nominee to lead the regulatory body adds to the optimism, as Atkins is viewed as more favorable toward cryptocurrencies than the current SEC chair, Gary Gensler. Digital asset expert Andrew O'Neill from S&P Global highlighted that anticipation surrounding the new administration's attitude towards crypto is influencing Bitcoin’s recent price surge and is expected to continue influencing its value into the new year.
However, while many have profited from Bitcoin's upward trend this year, some warn about its volatility. Coatsworth cautioned that the high-risk nature of cryptocurrency investment is not suitable for everyone, describing Bitcoin as unpredictable and primarily driven by speculation.
During the recent presidential campaign, Trump promised to dismiss Gensler—known for his tough stance on cryptocurrency—on “day one” of his presidency. This includes a record of 46 crypto-related enforcement actions initiated during Gensler’s leadership. Trump's anticipated replacement, Atkins, is seen as a sign of potential regulatory relief, which could propel Bitcoin further into the mainstream, as noted by Galaxy Digital CEO Mike Novogratz.
Historically, Bitcoin has seen drastic declines, notably dropping to below $16,000 in 2022 following the collapse of crypto exchange FTX. Nonetheless, several factors, including the SEC's approval of numerous spot Bitcoin exchange-traded funds (ETFs), have bolstered investor confidence, allowing major investment firms to enter the Bitcoin sphere.
Despite a more stable recent performance, experts emphasize that Bitcoin remains distinct from traditional currencies, meaning investors have no guarantees if they incur losses. Carol Alexander, a finance professor at Sussex University, pointed out that a fear of missing out is likely to keep Bitcoin's price rising, and while this may positively impact other cryptocurrencies, younger investors in meme coins could face significant losses.
Kathleen Breitman, co-founder of the cryptocurrency Tezos, reiterated the need for cautious consideration when engaging with these highly volatile markets, emphasizing that their momentum-driven nature requires extraordinary prudence.
Trump's announcement of former SEC commissioner Paul Atkins as a nominee to lead the regulatory body adds to the optimism, as Atkins is viewed as more favorable toward cryptocurrencies than the current SEC chair, Gary Gensler. Digital asset expert Andrew O'Neill from S&P Global highlighted that anticipation surrounding the new administration's attitude towards crypto is influencing Bitcoin’s recent price surge and is expected to continue influencing its value into the new year.
However, while many have profited from Bitcoin's upward trend this year, some warn about its volatility. Coatsworth cautioned that the high-risk nature of cryptocurrency investment is not suitable for everyone, describing Bitcoin as unpredictable and primarily driven by speculation.
During the recent presidential campaign, Trump promised to dismiss Gensler—known for his tough stance on cryptocurrency—on “day one” of his presidency. This includes a record of 46 crypto-related enforcement actions initiated during Gensler’s leadership. Trump's anticipated replacement, Atkins, is seen as a sign of potential regulatory relief, which could propel Bitcoin further into the mainstream, as noted by Galaxy Digital CEO Mike Novogratz.
Historically, Bitcoin has seen drastic declines, notably dropping to below $16,000 in 2022 following the collapse of crypto exchange FTX. Nonetheless, several factors, including the SEC's approval of numerous spot Bitcoin exchange-traded funds (ETFs), have bolstered investor confidence, allowing major investment firms to enter the Bitcoin sphere.
Despite a more stable recent performance, experts emphasize that Bitcoin remains distinct from traditional currencies, meaning investors have no guarantees if they incur losses. Carol Alexander, a finance professor at Sussex University, pointed out that a fear of missing out is likely to keep Bitcoin's price rising, and while this may positively impact other cryptocurrencies, younger investors in meme coins could face significant losses.
Kathleen Breitman, co-founder of the cryptocurrency Tezos, reiterated the need for cautious consideration when engaging with these highly volatile markets, emphasizing that their momentum-driven nature requires extraordinary prudence.
