Bitcoin’s value remained well below the much-anticipated $100,000 milestone over the weekend, disappointing many investors who had hoped the crypto would finally achieve this symbolic and psychological landmark.
Digital assets, ranging from Bitcoin to lesser-known “memecoins,” have surged in popularity since Donald Trump secured a second term as president. Investors are optimistic about the possibility of more favorable regulations in the United States, coupled with increased public interest driven by Trump’s vocal support for cryptocurrencies.
In the weeks following the election, the overall cryptocurrency market has seen a significant boost, with its total valuation increasing by roughly $1 trillion.
However, this wave of enthusiasm has not been enough to push Bitcoin to an all-time high. On Friday, the crypto was $600 shy of the $100,000 threshold, yet by Saturday, it remained below $99,000.
Reports indicate that Trump’s transition committee is actively exploring the creation of a new White House position focused specifically on digital asset policies. This shift highlights a broader acceptance of cryptocurrencies, as the president-elect—once skeptical about the industry—is now seen as a strong supporter.
Wall Street is also responding to the changing regulatory climate. For instance, Charles Schwab Corporation’s incoming CEO Rick Wurster stated that the company is prepared to offer spot cryptocurrency trading once clear regulatory guidelines are established.
Similarly, MicroStrategy Inc., known for accumulating large amounts of Bitcoin, plans to speed up its purchases of the digital asset. Furthermore, the recent launch of options trading for U.S. Bitcoin ETFs has contributed to positive market sentiment.
For Bitcoin advocates, reaching the $100,000 mark represents more than just a financial milestone. Many view it as symbolic proof of Bitcoin’s value as a modern store of wealth, countering critics who dismiss the cryptocurrency as volatile or prone to misuse.
Despite Bitcoin’s doubling in value this year, financial experts remain divided on its suitability as an investment. “Bitcoin’s valuation is tricky,” said Themis Themistocleous, UBS Wealth Management’s Chief Investment Officer for EMEA. “It’s highly volatile, and there are better portfolio hedges like gold, which consistently proves more reliable.”
Meanwhile, concerns about other types of digital tokens, such as stablecoins, were highlighted in a recent U.S. Fed report. Unlike other cryptocurrencies, stablecoins aim to minimize price fluctuations by pegging their value to assets like fiat currency. However, the Fed noted structural vulnerabilities in stablecoins, warning that they are prone to “runs” and lack robust federal oversight.
As Bitcoin and other cryptos continue their U.S. elections-induced momentum, various entities like Stronghold Digital Mining Inc. (NASDAQ: SDIG) are likely to reap the rewards of this bullish run given that their rewards are tied to the price of the cryptos they mine.
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