Everyone was waiting for it, now it really happened: the value of bitcoin exceeded 100,000 dollars for the first time, after the nomination of pro-crypto lawyer Paul Atkins as president of the Securities and Exchange Commission (SEC) by the President. – The election of Donald Trump.
The cryptocurrency community believes Atkins’ appointment will mark a major shift in the United States’ approach to regulation, away from Gensler’s historic anti-crypto enforcement action.
In recent weeks – especially since the start of the post-American election rally – there has been a lot of talk about the possibility that bitcoin could pass this threshold. Last November 22, things seemed one step away (BTC value exceeded 99,000 dollars for the first time), but from that peak the main cryptocurrency underwent a slight correction and settled in the range of 94-96,000 dollars for 12 days thereafter. Until today.
“From a technical point of view, the $100,000 level is an important symbolic resistance, and its breach could attract new capital, especially due to the renewed confidence of long-term investors,” says Stefano Bargiacchi of Directa SIM.
“This milestone represents an important psychological and technical level as well because it is a relevant threshold of profitability for those who invested five or ten years ago,” explains Ferdinando Ametrano, CEO of CheckSig, as well as a professor of Technology Bitcoin and Blockchain by the organization. University of Milan-Bicocca. “Interestingly enough, no one doubted that the goal would be achieved, they just didn’t know when.”
“However – continues Bargiacchi – the current context goes further. Bitcoin is in phase price discovery above previous all-time highs, an uncharted territory that has attracted attention and speculation.”
The one who wanted to sell has already been sold
At this point, however, one wonders if this historic milestone does not pressure many investors to take profits, given the high inherent volatility of cryptocurrencies.
According to Stefano Bargiacchi, “those focused on the short term have already profited during the latest rallies”. The $100,000 threshold could be crossed by “new capital instead, especially because of the renewed confidence of long-term investors. More than an immediate correction, a breach of the key level could trigger a new phase of growth, with the price driven by optimism and dynamism price discovery“.
“Now no one can continue to ignore bitcoin”, says Ametrano, according to which more than 100,000 dollars “could act as a driving force, because a race would begin to lose a train that would come to show that everyone still has a long way to go. go”.
Better to be careful with cryptocurrencies
Cryptocurrencies are notorious for their high volatility. Prices can fluctuate significantly over short periods, driven by factors such as market sentiment, regulatory changes, technological developments and macroeconomic trends.
Can I buy Bitcoin ETF in Italy? – click to read the article
“Investors should approach investing in bitcoin with the understanding that volatility is an inherent characteristic. This means being prepared for potentially significant price corrections and reductions in value, regardless of current conditions,” explains Dovile Silenskyte, Director of Digital Asset Research at WisdomTree. “Investors also need to recognize that volatility can work both ways. While there is potential for significant gains on the other side, there is also the risk of significant losses.”
So, how should investors who are interested in bitcoin or other cryptocurrencies behave? “The first piece of advice is to clearly define the time horizon and understand the application and risks of cryptocurrencies,” says Bargiacchi. “A systematic approach, such as that based on plans of accumulation (PAC), can help mitigate volatility, avoiding the often unsuccessful attempt to ‘time’ the market. It is necessary to invest only a part of the capital that you are willing to lose, without affecting funds intended for current expenses or emergencies”.
For starters, instruments such as ETPs with physical underlyings can be a valid alternative to direct holdings. These products reduce the complexities of security, tax management and asset custody. “In Europe we are pioneers in this field – recalls Bargiacchi – with tools that have been available for years, although the United States has recently moved to allow the spot ETF”.
For those who want to trade directly in cryptocurrencies, Ametrano emphasizes the importance of relying “only on safe, regulated platforms with proven experience” and “avoid at all costs opaque operators that do not offer adequate security measures in custody of assets, which does. are not guaranteed insurance cover to protect your assets or are not independently audited”.
The author(s) have positions in several stocks mentioned in this article. Read the Morningstar editorial policy.
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what implications does Bitcoin’s rise to $100,000 have for cryptocurrency regulation?
Time.news Interview: Bitcoin Surpasses $100,000 – A New Era in Cryptocurrency Regulation
Editor: Welcome to Time.news! Today, we are thrilled to discuss a significant milestone in the world of cryptocurrency – Bitcoin has just surpassed $100,000 for the first time in history. Joining us is ferdinando Ametrano, CEO of CheckSig and professor at the University of milan-Bicocca, along with stefano Bargiacchi from Directa SIM. Thank you both for being here.
Ametrano: Thank you for having us!
Bargiacchi: It’s a pleasure.
Editor: Let’s dive right in. Ferdinando, Bitcoin has crossed this symbolic $100,000 threshold. You mentioned it represents a significant psychological and technical level for investors, particularly those who invested years ago.Can you elaborate on that?
Ametrano: Absolutely. For many long-term investors who entered the market five to ten years ago, this milestone signifies a period of great profitability. It’s more than just a number; it embodies the growth journey Bitcoin has undergone. Interestingly, ther was a general consensus that this goal would eventually be achieved, but the timing was uncertain.
Editor: That makes a lot of sense. Stefano, you’ve been closely following Bitcoin’s price trends. Can you explain what the breach of this $100,000 level means for future investment and market behavior?
Bargiacchi: From a technical outlook, crossing the $100,000 mark could act as a magnet for new capital. We are currently in a phase of price discovery—this means we’re entering uncharted territory. The excitement surrounding this milestone can attract more investors who might have hesitated before, as it creates renewed confidence in the market.
Editor: with this achievement, do you think there’s a risk of investors taking profits? The volatility in cryptocurrencies is well-known.
Bargiacchi: That’s a great point. Many short-term investors may have already capitalized on recent rallies,but I believe that crossing this threshold will likely encourage new,long-term investors to join the fray. Instead of a correction, we could see a new growth phase, propelled by optimism and this ongoing price discovery.
Ametrano: I would also add that now, with Bitcoin firmly in the spotlight, the narrative is changing. At over $100,000, it’s becoming unfeasible to ignore Bitcoin. It might even create a fear of missing out—people may feel if they don’t jump in now,they could miss a significant opportunity.
Editor: That’s certainly an intriguing perspective. Speaking of narratives, the appointment of Paul Atkins as president of the SEC has been seen as a game-changer. How do you believe his leadership will impact the regulatory landscape for cryptocurrencies?
Ametrano: Paul Atkins’ pro-crypto stance has the potential to shift the regulatory approach significantly. The previous leadership was more focused on stringent enforcement,which created uncertainty. With Atkins at the helm, we could see a more favorable environment for crypto innovations and investments.
bargiacchi: Exactly. This shift could give existing and potential investors more confidence in the regulatory outlook.As regulations stabilize and become clearer, we could see a surge of institutional and retail interest in Bitcoin and other cryptocurrencies.
Editor: It’s certainly an exciting time for the cryptocurrency community. Though, with this newfound optimism, what should investors keep in mind moving forward?
Bargiacchi: Caution is still vital. While there’s a potential for growth, the volatility inherent in cryptocurrencies means that markets can shift dramatically. Investors should approach with a long-term mindset and be prepared for fluctuations.
Ametrano: I agree. It’s essential for investors to conduct thorough research and understand their risk tolerance. The market might be buoyant now, but prudent decision-making can help navigate potential pitfalls along the way.
Editor: Wise words. Thank you, Ferdinando and Stefano, for your insights into this historic moment for Bitcoin and the cryptocurrency market at large. It’s a pleasure having you both share your expertise.
Ametrano: Thank you for having us!
Bargiacchi: It was a pleasure. Looking forward to seeing how this all unfolds.
Editor: And thank you to our viewers for joining us in this discussion. Stay tuned for more updates on cryptocurrency and its evolving landscape!