Bitcoin Hits a Record High
December 5, 2024, Bitcoin smashed its previous ATH, soaring to an impressive $104 000. This milestone marks a dramatic surge in volatility for the first time in a while.
Source: Coinbase.com
Following its price surge, Bitcoin's market capitalization has also set a new record, surpassing an astonishing $1.9 trillion.
According to Binance, Bitcoin repeatedly hit ATHs throughout November 2024, only to dip and rebound again. Crypto experts predict further growth for the leading cryptocurrency in the near future.
Let’s find out the reasons behind Bitcoin’s sharp rally and explore whether investing in the cryptocurrency is a smart move amidst its rising value.
Trump's Victory: Make Bitcoin Great Again
On November 5, 2024, the United States held its 47th presidential election. According to Bloomberg, Bitcoin reached a new ATH shortly after this pivotal political event. Just a week later, the cryptocurrency hit a historic milestone, exceeding $90 000 for the first time ever. This marked a stunning one-third increase in Bitcoin's value, earning renewed attention from crypto enthusiasts.
According to Bloomberg, Donald Trump's victory was the key factor behind Bitcoin's growth. The secret to the cryptocurrency's new ATH lies in the newly elected US president’s stance on the crypto world. Trump is a strong crypto enthusiast who supports the cryptocurrency advancement. One of his main promises for his second term is to create the ‘Bitcoin superpower’ with sensible regulation. His victory, alongside the Republican Party's success in the elections, strengthens his ability to influence critical decisions both in the US and within the global crypto space.
The US president’s backing of the crypto community has revitalized Bitcoin, propelling its price to a new ATH.
Crypto experts also point to several lesser-known reasons behind Bitcoin's growth:
- The exchange-traded funds launch in the USA
- The Federal Reserve's interest rate cuts
- Bitcoin’s halving
- Growing uncertainty about the dollar's status as a reserve currency
Bitcoin's future growth hinges on President Trump’s decisions regarding cryptocurrency legislation. Whether he will prioritize these changes or focus on global issues remains to be seen.
Bitcoin Breaks Records: What This Means for the Crypto Market
Bitcoin continues to lead the charge as the dominant trendsetter in the crypto space. According to Binance analysts, the crypto world is poised for steady growth.
The crypto market is currently experiencing a ‘bullish’ trend. As of December 7, 2024, Ethereum, the second-largest cryptocurrency by market cap, surged to $4 096. Meanwhile, Dogecoin also hit a new record, rising by 12%.
Just the Beginning: Is Now the Right Time to Invest?
Many economists and experts predict continued growth for Bitcoin, especially if the US establishes a strategic crypto reserve. This could be a game-changer for Bitcoin's future prospects.
Keep in mind that cryptocurrency is a highly volatile asset, and the final decision on investing rests with the individual investor.
