THE price of Bitcoin has reached its highest ever valuation as Donald Trump’s sweeping election victory continues to bump up the price.
The world’s biggest cryptocurrency now sits above $100,000 for the first time – marking a massive rise of 45 per cent since November 5.
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Ambitious investors have constantly been betting on the future US administration – led by Trump – to welcome in a friendly and successful few years for the crypto markets.
One mystery Bitcoin ace is even now said to own currency valued at over $25.5billion – making them the 78th richest person in the world.
The surging Bitcoin market is now valued at $103,280 (£81,160) as of this morning, according to currency converter XE.com.
In the past 24 hours alone this has soared up in value by a whopping 7.9 per cent.
This rising trend has continued ever since election day where the market sat at just $69,374 (£54,608).
The total value of the cryptocurrency market as a whole has also seen a remarkable surge due to the Republican clean sweep.
It has almost doubled in the past 12 months and now sits at just under $3.8trillion, according to CoinGecko.
Mike Novogratz, founder and CEO of US crypto firm Galaxy Digital said: “We’re witnessing a paradigm shift.
“Bitcoin and the entire digital asset ecosystem are on the brink of entering the financial mainstream.
“This momentum is fuelled by institutional adoption, advancements in tokenisation and payments, and a clearer regulatory path.”
Many experts say the valuation hike is down to Trump’s pro-stance on the crypto world and his latest set of cabinet picks.
During his long presidential campaign, Trump promised to make America the “crypto capital of the planet”.
He even vowed to build up an untouchable national stockpile of Bitcoin.
The Republicans latest move to bolster up the beliefs of his national bet makers saw him pick Paul Atkins as the chair of the Securities and Exchange Commission.
Atkins has previous experience in the role under the George W. Bush administration and is a very vocal cryptocurrency advocate.
He has spent the last few years as the co-chair of the Token Alliance – a company who say they work to “develop best practices for digital asset issuances and trading platforms”.
Trump took to Truth Social to praise Atkins for his economical nous.
He said: “He believes in the promise of robust, innovative capital markets that are responsive to the needs of Investors, & that provide capital to make our Economy the best in the World.
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“He also recognises that digital assets & other innovations are crucial to Making America Greater than Ever Before.”
Investment analyst Tony Sycamore predicts that the $100,000 barrier may be just the tip of the iceberg for Bitcoin’s journey.
He said: “The King of Crypto has smashed its way above $100k in trading today.
“This is likely to be the catalyst for the next wave of momentum buying which takes it towards the next stop of $105k, before $120k in 2025.”
Fellow expert Jeff Mei from BTSE also described passing the six-figure threshold as a “pivotal moment for the cryptocurrency industry”.
Despite the meteoric rise in the value of Bitcoin many are still warning people to take care when investing their money into crypto.
Investment analyst Dan Coatsworth said: “A lot of people have got rich from the cryptocurrency soaring in value this year, but this high-risk asset isn’t suitable for everyone.
“It’s volatile, unpredictable and is driven by speculation.”
Risks of crypto investments
BELOW we round up five risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.Â
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.Â
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products. Â
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
It’s very important only to invest in any form of cryptocurrency if you understand it.
Remember, there’s no guarantee you can convert cryptocurrency into real cash and investing is not a reliable way to make money.
That’s because it can be highly volatile too – meaning your cash could soar or plummet at any given moment.
There are lots of things to look out for but, most importantly if something looks too good to be true, it probably is.
Always check with a trusted friend if you’re not sure about something as well – they may be able to spot something you haven’t.
Also, don’t always trust a glowing website and perfect reviews – fraudsters can get quite smart with these things.
For more on how to avoid scams, read our guide here.