By Heather Altamirano, GoBankingRates
It’s an extraordinary time for Bitcoin. The cryptocurrency hit $100,000 for the first time, but some finance experts have concerns.
Here’s what the new milestone for the cryptocurrency could mean for your wallet and what to be wary of.
Bitcoin Is Still Relatively New
In 2009, Bitcoin, a virtual currency, was launched by an unknown person or group referred to as Satoshi Nakamoto after the global financial crisis, which caused major institutions to collapse.
It was created to use just like money and provide stability in a downward economy by eliminating the need for a bank or trusted third parties in financial transactions, but many remain cautious.
“Whilst the $100,000 level is a round number making headlines, it should be remembered that Bitcoin is still a very volatile asset and it’s still very early days,” said Vince Stanzione, renowned financial trader, best-selling author and founder of First Information.
Acceptance of Bitcoin
With the fascinating news of Bitcoin’s performance, many are wondering what this means for investors and crypto enthusiasts. According to Stefania Barbaglio, founder and CEO of Cassiopeia Services, it indicates Bitcoin’s acceptance.
“It’s a strong signal for the entire crypto industry — a statement showing how far crypto has come and how much confidence is growing in the space,” she explained. “It’s exciting for the whole industry. More people will now pay attention and want to get involved.”
There Is a High Risk
While there’s a lot of buzz right now around Bitcoin, there’s also some concern.
“Critics worry because when something gets a lot of hype, there’s a risk people might jump in without fully understanding what they’re investing in,” Barbaglio explained. “There is risk.
“Bitcoin is still very volatile, so it’s not for everyone. A bigger issue is that governments and traditional financial institutions feel threatened. Crypto challenges their control, and they’re starting to realize it’s not going away.”
Trump’s Impact on Bitcoin
Trump’s recent comments about Bitcoin have people taking notice, but experts disagree about the effect the president-elect has.
“It’s a positive cascade effect,” said Daniel Keller, CEO and co-founder of InFlux Technologies. “It’s rebuilt trust in the market and has a ripple effect on other countries regarding policy reform, tax reform and investor relations.”
Barbaglio also sees Trump’s positive stance on Bitcoin as a “massive turning point,” and stated he’s put the cryptocurrency into the spotlight in a way we haven’t seen before.
“It’s not just about the support — it’s the fact that a global leader is openly aligning with crypto,” she explained. “I was in Nashville when he spoke, and it felt historic. For Bitcoiners, it was a moment of validation. It has pushed crypto further into the global conversation.”
However, not everyone believes Trump has the impact on Bitcoin that some think.
“Donald Trump is now claiming he is bitcoin-friendly, but remember, Bitcoin was already having a great year before the elections,” Stanzione said. “We had the four-year halving in April 2024, which adjusts the difficulty rate and tends to help the bitcoin price go higher.