Bitcoin Hits $100k Peak: Will It Crash?
In recent news, Bitcoin has hit a record high of $100,000, thanks to a surge in optimism following Donald Trump’s victory in the US presidential election. This milestone has left many wondering if this upward trend can be sustained. Let’s take a closer look at what’s been going on with Bitcoin.
Earlier this year, the US Securities and Exchange Commission (SEC) approved exchange-traded funds, giving Bitcoin a significant boost. This move, coupled with anticipation, propelled Bitcoin from $16,500 to over $40,000. As more institutional investors jumped on board, Bitcoin climbed to $75,000 by June. However, a sell-off by large wallets caused the price to drop to nearly $50,000 in September. Trump’s win in the election reignited the rally, pushing the price up past $100,000.
Experts believe that the value of cryptocurrencies, including Bitcoin, will continue to rise as long as the current wave of enthusiasm in the US persists. With Bitcoin’s market cap now at $2.02 trillion, many analysts view it as “too big to fail.” This growth can also have a positive impact on other cryptocurrencies, leading to further expansion of the market. While some predict that cryptocurrencies are on the brink of mainstream adoption, this has yet to be fully realized. In the short term, most expect Bitcoin to keep climbing.
Bitcoin isn’t the only cryptocurrency experiencing gains. Ethereum’s ETH has seen a 70% rise since January, nearing its 52-week high. Ripple’s XRP has surged 3.8 times this year, becoming the fourth-largest cryptocurrency by market cap at $135 billion. Solana (SOL), the next in line, with a market cap of $111 billion, has also seen significant growth. In fact, the top 10 cryptocurrencies have all surged 2 to 4 times this year, making 2024 a bullish year for them.
Despite the positive outlook, there are concerns about a potential crash. Critics highlight the volatility of cryptocurrencies which, unlike blockchain technology, lack physical backing. The presence of crypto “whales”—wallets holding over $1 million in tokens—poses a risk, as their liquidation could severely impact any cryptocurrency. Additionally, economic uncertainties and policy changes beyond Trump’s influence could also disrupt the crypto market.
As for India, while some cryptocurrency exchanges have seen increased user activity, regulatory challenges and high tax rates have hindered significant growth. With financial authorities in India expressing reservations about cryptocurrencies, the potential impact of Trump’s policies on this sector may be limited. Overall, the rise of cryptocurrencies may not translate into major benefits for Indian users due to existing regulatory constraints and market limitations.
