Cryptocurrency hype
Bitcoin rises again to more than $100,000
updated on December 6, 2024 – 8:35 p.mReading time: 4 min.
more than $100,000: Bitcoin has broken this mark again.What contributed to this rapid rise.
Bitcoin is gaining momentum again and making it back above the $100,000 mark.The highest-selling cryptocurrency rose in price by up to 2.9 percent to $101,849.
Profit-taking had previously caused the cyber currency to drop to $92,092. “Obviously there are still numerous investors on the sidelines who are just waiting for a supposedly cheap entry.The first stress test seems to have been passed,” says expert Timo Emden from the analysis house Emden Research.
Along with the hope for a crypto-amiable Washington, investors are betting on further interest rate cuts by the US Federal Reserve, which will play into the hands of interest-free and risky assets like Bitcoin.
On Thursday, the cryptocurrency rose above $100,000 for the first time, 16 years after it was founded. The oldest and best-known digital
Bitcoin has risen enormously, especially since the US presidential election on November 5th. Before the Republican’s election victory, the cryptocurrency was still trading at around $70,000.
Proponents of cryptocurrency see Bitcoin as a kind of digital gold and, at least in the long term, protection against inflation, also because only a maximum of 21 million virtual coins can be created. Critics complain,among other things,about the high energy consumption for operating the Bitcoin system and point out high price fluctuations.
Investors are currently hoping that election winner Donald Trump will implement crypto-friendly regulations. The party mood in the crypto scene was fueled on Wednesday by Trump’s declaration that he would make crypto advocate Paul Atkins his preferred candidate to head the powerful US Securities and Exchange Commission (SEC).
The previous SEC Chairman Gary Gensler, on the other hand, was known for his tough stance towards digital currencies.Gensler announced on November 21 that he would step down from his post when Donald Trump moved into the White House in January.
For many crypto investors, Gensler was a red flag. Under his leadership, the SEC generally enforced strict rules for digital currency transactions and cracked down on crypto fraud cases.
Trump emphasized Atkins’ crypto affinity on his social media platform Truth Social: “He also recognizes that digital assets and other innovations are critical to making America greater than ever before.”
If Atkins actually becomes SEC boss, experts expect that more crypto ETFs will be approved. So far there are only Bitcoin and Ether as ETFs in the USA. The abbreviation ETF stands for Exchange
After Gensler’s departure, many crypto investors are not only hoping for laxer supervision, but are also betting that the new US government under trump will invest in Bitcoin as a counterbalance to the state’s gold reserve. The United States owns over 8,100 tons of the precious metal, worth around $670 billion, making it the largest known gold investor in the world.
Republican Senator Cynthia Lumis from the US state of Wyoming, who is considered a confidante of Trump, had proposed purchasing a total of one million Bitcoin over a period of five years and holding them for at least 20 years. As the maximum amount of Bitcoins is limited to 21 million, that would be just under 4.8 percent of the total bitcoin holdings.
Experts see the investment strategy of the US company MicroStrategy as another reason for the increase in the value of Bitcoin. Company boss Michael Saylor is considered a hardcore Bitcoiner and has so far raised the equivalent of around $32 billion in the digital currency with money from corporate bonds.
MicroStrategy recently announced that it would raise $2.6 billion in new debt. The debt is raised through the issuance of so-called convertible bonds and is reserved for institutional investors. microstrategy wants to invest the fresh capital in Bitcoin.
What are the potential risks and benefits of investing in Bitcoin right now?
interview: An Insight into Bitcoin’s Resurgence
Interviewer (Time.news Editor): Welcome to Time.news! Today, we’re diving deep into the recent surge of Bitcoin, which has soared past the $100,000 mark again. joining me is Timo Emden,an expert from Emden Research. Timo, thank you for being here!
Timo Emden: Thanks for having me! It’s an exciting time for cryptocurrency, and I’m happy to discuss it.
Editor: absolutely! Now, can you start by explaining what factors contributed to bitcoin crossing that remarkable $100,000 threshold?
Timo: Certainly! Much of the rise can be attributed to renewed investor confidence. After a brief dip to around $92,000, we saw a lot of profit-taking that caused concern among some investors. However, it seems that many were ready to jump back in, viewing the dip as a buying prospect.
Editor: Interesting! You mentioned investors waiting for a good entry point. What does that tell us about the current market sentiment?
Timo: It indicates that there’s still a notable pool of capital on the sidelines, waiting for a favorable moment to invest. The enthusiasm surrounding the potential for crypto-positive regulatory changes in washington has fueled optimism.Many investors believe that with appropriate monetary policy shifts, especially interest rate cuts by the Federal Reserve, Bitcoin and other cryptocurrencies can thrive as attractive, risk-oriented assets.
Editor: Speaking of Washington, how do you think the recent political landscape has influenced Bitcoin’s performance?
Timo: The outcome of the recent US presidential election, particularly the Republican victory, has been pivotal. Investors are hopeful that Donald Trump will introduce crypto-amiable regulations, especially with his intention to appoint Paul Atkins, a known cryptocurrency advocate, to lead the SEC. This has invigorated the market, as many believe these steps coudl pave the way for greater acceptance and mainstream integration of cryptocurrencies.
Editor: That’s a significant development! Though, we can’t ignore the criticisms surrounding Bitcoin, particularly regarding its energy consumption and volatility. How do you reconcile these concerns with its rising popularity?
Timo: It’s true—Bitcoin faces scrutiny over its environmental impact and price fluctuations. Critics argue that the energy consumption required to mine Bitcoin is excessive, and they highlight the associated price volatility as a risk for investors. However, proponents view Bitcoin as a hedge against inflation, often likening it to digital gold. The finite supply of 21 million coins makes it attractive to those seeking to protect their wealth in uncertain economic times.
Editor: So, it’s a classic risk-reward scenario. Do you think Bitcoin’s ascent will continue,or are we likely to see corrections in the near future?
Timo: The market is unpredictable. While the current momentum might suggest further gains, corrections are always a possibility in the cryptocurrency space. It’s important for investors to be prepared for fluctuations. The sentiment is generally bullish right now, but market conditions can shift quickly due to external factors or changing regulatory landscapes.
Editor: That’s solid advice! As we look to the future, what do you think will be the key factors that will shape Bitcoin’s trajectory?
Timo: Key factors will include regulatory developments, global economic conditions, and advancements in blockchain technology. Additionally, mainstream adoption by businesses and institutional investors will play a crucial role in shaping Bitcoin’s status. If it can solidify itself as a reliable asset in the long run, it may see a more stable price and broader acceptance.
Editor: Thank you, Timo! It seems like we’re on the brink of significant changes in the cryptocurrency world. I appreciate you sharing your insights with us today!
Timo: My pleasure! It’s a interesting subject, and I look forward to seeing how it unfolds.
Editor: And thank you to our readers for joining us in this discussion on Bitcoin. Stay tuned for more updates and insights in the financial world!