Bitcoin broke through the USD 93,000 barrier on wednesday, setting new records that increased hope that the popular cryptocurrency would soon approach the USD 100,000 mark.
Bitcoin reached a new high of USD 94,039.63 per bitcoin earlier in the day and increased 3.5 per cent to USD 93,943.26 on wednesday.
Last week, Bitcoin saw a roughly 11 per cent increase, reaching an all-time high of almost USD 93,500. The victory of pro-crypto Donald Trump in the US presidential election served as the rally's reason for optimism.
Reasons behind rally
Elon Musk, backed Doge, a meme coin, which helped other altcoins do better as well. Today, DOGE now stands for the proposed Department of Government Efficiency, which Musk is expected to head after the January 20 inauguration of the Trump administration.
After enduring numerous setbacks, including hacks, frauds, and outright bans by authorities, Bitcoin appears to be hadlling everything well. People were critical of it because of the high gas fees on the platforms and the amount of fuel required to mine one bitcoin.
Crypto markets on high
Trump's pledged support for digital assets has propelled cryptocurrencies since his victory in the 2024 US Presidential Elections in November of that year.
According to CoinGecko, traders are keeping an eye out for less stringent regulations, and the growing excitement has driven the global cryptocurrency market value to USD 3.2 trillion, a record high.
How safe is crypto investment?
The recent surge in the price of Bitcoin indicates that investors are interested in adding digital assets like cryptocurrency to their portfolio because of the potential for large returns. Also, they are easily accessible in different places. It also falls into a regulatory gray area due to a lack of oversight.
Trading platforms continue to be vulnerable even though the blockchain technology that powers cryptocurrencies promises security. This is another significant disadvantage. For example, in July, a cyberattack cost the Indian cryptocurrency exchange WazirX more than USD 230 million. deals and enhance the mood of the market.
