Bitcoin Hits 100K Milestone, Nudging Crypto Investors and Fans to Scramble

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As a seasoned crypto investor with over a decade of experience under my belt, witnessing Bitcoin break through the $100,000 barrier is nothing short of exhilarating. I’ve been through market crashes, regulatory uncertainties, and countless ups and downs in this rollercoaster ride we call cryptocurrency investing. But seeing Bitcoin achieve a market capitalization of over $2 trillion, surpassing even the mighty gold, is truly a historic moment.

On December 5, Bitcoin surpassed the symbolic $100,000 mark, trading approximately at $102,605. This significant milestone has boosted Bitcoin’s market capitalization above $2 trillion, highlighting its unprecedented status as the most prized and valuable investment asset ever, even surpassing gold in this regard.

Bitcoin’s value significantly increased over a prolonged period due to its steady growth, with a significant surge starting on November 6 following the announcement of the U.S. presidential election results, where crypto-friendly candidate Donald Trump emerged victorious. In just a few short hours, Bitcoin’s price soared from around $68,000 to over $75,000.

Underpinning Reasons

After President-elect Donald Trump announced his decision to nominate Paul Atkins as the new head of the U.S. Securities and Exchange Commission on Wednesday, the value of Bitcoin surged past $100,000, a move welcomed by the cryptocurrency community. Known for his experience as a former federal regulator and legal advisor to financial firms and cryptocurrency companies on regulatory matters, Atkins’ appointment was seen as a positive step in addressing cryptocurrency-related issues.

Dan Gallagher, the legal head at Robinhood Markets Inc., stated that Paul Atkins is exceptionally suited for the role,” (in reference to Trump’s decision)

After a string of declarations from prominent members of the U.S. government about the essence of Bitcoin, an appointment was set. Coincidentally, on the same day that Trump chose Atkins, Federal Reserve Chair Jerome H. Powell commented on Bitcoin’s role as an investment vehicle, expressing his views.

Powell explained that many individuals treat Bitcoin more like a risky investment, similar to gold. However, unlike physical gold, Bitcoin is a virtual, digital asset. It’s important to note that most people are not using it for regular transactions or as a means to preserve wealth.

It’s extremely unpredictable. It doesn’t aim to replace the dollar, but rather, it’s more like a rival for gold,” was his final thought.

Appointing Atkins signals a drastic change in the U.S. government’s viewpoint on cryptocurrencies, contrasting the Biden administration’s previously critical stance towards digital currencies. In comparison, the previous administration took significant steps against specific cryptocurrencies and crypto businesses, as well as their leaders, closely examining their activities and dealings involving cryptocurrency.

As an analyst, I’m observing that the new administration under Trump appears to be adopting a proactive approach towards cryptocurrencies. Rather than enforcing regulations and relying on legal crackdowns to curb illegal activities in the sector, they seem open to collaborating with the crypto industry. This strategy could potentially minimize illicit activities by fostering cooperation within the community.

At the moment, there’s a lot of excitement in the cryptocurrency market, primarily due to expectations of a change in the U.S. administration. However, investors should be cautious as Trump might not follow through on his promises once he takes office in January. As such, it’s recommended that they temper their enthusiasm, manage risks wisely, and prepare contingency plans or exit strategies for different situations.

Companies dealing with cryptocurrencies, such as asset managers and software developers like MicroStrategy, have shown enthusiasm towards Trump’s changes in his administration team. This is significant because this company is recognized as the largest Bitcoin holder among publicly traded enterprises in the U.S. However, the benefits of these changes are more noticeable for companies dealing in US Dollars, given that Bitcoin has become largely unavailable to most legal entities and individuals outside the U.S.

The Risks

As the broader market cheers on Bitcoin’s significant achievement, it’s important to remember that there are potential hazards associated with it and regulations to consider as well.

Trump’s supportive stance towards cryptocurrency might be more about business than politics, given his recent setup of World Liberty Financial – a company primarily owned by his family members, which appears to focus on trading digital currencies. This could potentially leave crypto advocates who have been pushing for regulatory changes feeling swamped or undermined in terms of credibility.

The market conditions might quickly flip, similar to how Bitcoin surged to $69,000 in late 2021 only to drop below $17,000 by late 2022 following the FTX exchange failure. This serves as a reminder for all crypto traders and experts to exercise caution and choose trustworthy business partners and platforms when dealing with cryptocurrencies.

Work with the Pros 

Reaching a fresh all-time high for Bitcoin indicates an imminent surge in crypto demand across the market. To remain competitive and capitalize on the best investment opportunities, it’s crucial to collaborate with trusted industry leaders.

As a crypto analyst, I firmly believe that starting trades during market lows forms the crux of successful cryptocurrency trading, embodying the age-old principle of “buy low, sell high”. Platforms like ChangeNOW offer an optimal environment for executing swaps at minimal fees with Bitcoin and more than a thousand other digital currencies. Regardless if you’re making swaps, buying, or selling, ChangeNOW provides a user-friendly, one-stop interface to facilitate all operations efficiently.

As a researcher, I can confidently state that integrating the NOWPayments API into one’s business for accepting cryptocurrencies as a form of payment from clients could prove highly advantageous. The benefits extend to round-the-clock support in various languages and low commissions with instant processing, all features readily accessible through this service.

Businesses looking to cater to crypto users might want to explore ChangeNOW and integrate the NOWPayments service. This move will expedite their transactions involving cryptocurrencies, enabling them to establish a swift checkout platform right away.

Takeaway 

With Bitcoin’s price climbing high, crypto investors are gathering momentum to cash in on the gains. Whether Donald Trump will follow through with his promise to soften the administration’s stance towards cryptocurrencies is yet unclear. However, his selection of Atkins as SEC chairman is a positive move that the market has been eagerly anticipating.

In the midst of a scorching hot market, I can confidently say that ChangeNOW is an unparalleled ally for any individual or business when it comes to handling their crypto transactions with ease and efficiency.

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2024-12-06 16:43