For the first time ever in the cryptocurrency market, Bitcoin has risen through the $100,000 level, thereby ushering in a new age. Currently, the largest digital currency by market value was trading at $101,114 in Singapore by Thursday morning, according to data; its total market value had reached $2 trillion. This achievement comes as the overall market cap crosses nearly 3.78 trillion, with cryptocurrencies becoming more prominent in the world economy.
The outstanding rise in the rate of Bitcoin could be driven by a combination of factors, with the recent presidential win by Donald Trump contributing highly. After the Trump win, Bitcoin rose by around $100, or 45%, to around $1200 in 2 weeks, which points to the direction that the new administration will support Bitcoin. A lot of media attention has been paid to the idea that Trump’s team will facilitate the legalization and expansion of digital assets.
Sources claim that Trump’s nearest circle is in contact with Bitcoin and crypto gurus and top managers to discuss the establishment of a special position on cryptocurrency at the White House. Such a creation of a potential “crypto czar” to coordinate federal policy and regulation is a clear indication of intent to co-opt digital currencies into the mainstream financial environment. In addition, hints have emerged that the Trump government is serious about executing its agenda to create a U.S. Bitcoin strategic reserve, having promised to make the United States the crypto capital of the planet.
It should be noted that the promotion of the cryptocurrency’s price growth cannot be explained only by political factors. The emerging Wall Street spot Bitcoin exchange-traded funds (ETFs) have provided new entry points for institutional participation in the asset type. The high liquidity, together with the anticipated reduction in Federal Reserve interest rates, has also boosted Bitcoin’s rate. This shows the cryptocurrency has been robust, bouncing 155% y/y from its low in January at $38,505.
Daemp that Bitcoin is still perhaps the most revolutionary invention of THIS, cutting up the facet of its influence on the global monetary system is increasingly apparent. New forms of digital currency are on the rise, gradually changing the face of investment solutions and challenging the conventional wisdom of what constitutes value or money. Being highly decentralized and better, having limited circulation and growing recognition as an inflation hedge instrument and investment protection instrument, Bitcoin attracts stakeholders, ordinary buyers, and institutional investors.
Indeed, Bitcoin brought indications of its ascent beyond the context of monetary exchanges. Cryptocurrencies are set to disrupt several industries and forms of economies once the global public begins to embrace them fully, primarily due to their efficiency in exchange, supply chain, and even political systems. Blockchain, the underlying technology for Bitcoin, is currently being considered to improve transparency, security, and performance in a wide array of fields.
Yet, as with almost any new and fast-developing industry, there are also some concerns connected with Bitcoin and other cryptocurrencies. As noted, national and international regulatory organizations are struggling to understand how best to monitor and incorporate such digital assets into the current financial architecture. Issues such as fluctuations in the market price of cryptocurrencies, the lack of security of the digital coins, and the energy they consume to create continues to cause heated and continued debate among government policies, environmental activists, and business moguls.
Bitcoin is on the right path as it surges past $100,000 that will create an apparent example of cryptocurrencies’ maturity. Whether this is the start of a new financial revolution or is just a bubble that has now appeared, only time will tell. But it can be stated with certainty that cryptocurrencies have become a formidable player in the global financial market for every player – investor, regulator, and the client.
