TLDR
- Bitcoin hit an all-time high of $107,487, due to political and corporate developments.
- Donald Trump’s pro-crypto presidency and plans for a Strategic Bitcoin Reserve sparked investor confidence.
- Companies such as MicroStrategy and BlackRock are legitimizing Bitcoin as an asset, encouraging institutional interest.
- Investor FOMO (Fear of Missing Out) has also driven demand for Bitcoin.
- Experts caution about cryptocurrency volatility, advising a 5% portfolio allocation and a long-term investment approach.
Bitcoin has set a record for itself by reaching the highest price levels. It has surpassed $100,000 for the first time since its inception. The price has soared immensely due to a lot of political developments in favor of cryptocurrency such as Texas Rep. Giovanni Capriglione filing the House Bill 1598 to form a strategic Bitcoin reserve. Plus, even companies are showing interest in cryptocurrencies, as can be witnessed by BlackRock’s recommendation to allocate 1-2% Bitcoin for multi-asset portfolios.
Recent Price Milestones
On December 5th, 2024, Bitcoin reached an all-time high of $103,647, marking a major milestone in cryptocurrency history. The boost was mostly because of pro-crypto Donald Trump being elected as President. His victory sparked optimism with the investors who are now hopeful to have a better environment for cryptocurrencies. The price shot up from $103,647 to $107,487 by 17th December 2023.
The reason behind the boost
Trump’s presidency has been one of the main reasons to help bring back confidence in cryptocurrency and increase the price of Bitcoin. Moreover, Trump’s promise to form a Strategic Bitcoin Reserve has brought about a lot of excitement from investors. Plus, there has been another factor at play. The psychological phenomenon “FOMO” (Fear of Missing Out), nudges many investors to invest in Bitcoin. Bitcoin is increasing in value daily, so the optimism in the cryptocurrency does seem valid.
Recently, notable companies like MicroStrategy have also added to their Bitcoin holdings, giving it legitimacy as a proper asset class. This also motivates other institutions to take the innovative step to dabble in cryptocurrency. Many cryptocurrency holders are now more hopeful that the new Trump administration will bring about more favorable regulations for them.
Some experts still believe that there should be some caution when investing in cryptocurrency because the market is volatile. After highs, even Bitcoin has suffered some lows. Therefore, some financial advisors recommend that investors only invest about 5% of their portfolios and maintain a long-term investment perspective to lessen the potential risks.
