Bitcoin Surpasses $100,000: 3 Key Factors to Understand

Bitcoin has reached an all-time high of $100,000, marking a significant milestone for the cryptocurrency that was created over 15 years ago through mysterious circumstances involving coding. The surge in its value, more than doubling this year alone, has been attributed to the election of Donald Trump, who aims to make the U.S. the “crypto capital of the planet” by implementing crypto-friendly regulations and lifting strict enforcement actions against the industry.

This monumental increase in Bitcoin value coincided with Trump’s appointment of Paul Atkins, a crypto supporter, as the next chair of the Securities and Exchange Commission, bolstering hopes for a more favorable environment for the industry. Trump has even proposed the creation of a crypto “strategic reserve” and has personal financial interests in a crypto venture, driving excitement among crypto investors while also raising concerns among critics.

The election of Donald Trump has had a significant impact on the world of cryptocurrency, with Bitcoin prices soaring even before his victory as investors anticipated favorable outcomes. Initially a critic of cryptocurrencies, Trump transformed his stance to become a champion for the industry, promising a more crypto-friendly administration that is expected to appoint regulators aligned with its interests.

The future of Bitcoin appears promising, with optimism brought about not only by Trump’s influence but also by the growing mainstream acceptance of the cryptocurrency. The approval of investment funds tied to Bitcoin earlier this year, known as exchange-traded funds, has made it more accessible to average investors and contributed to an increase in overall assets exceeding $100 billion.

Despite the positive outlook, concerns persist over the volatile nature of cryptocurrencies and their history of fraud and scams. Critics, including Dennis Kelleher, president and CEO of Better Markets, caution against the risks of entering the crypto market, warning that average investors could fall victim to fraudulent schemes. While there is excitement surrounding Bitcoin’s recent milestones, the industry remains under scrutiny for its potential vulnerabilities and threats.