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Cryptocurrency

Bitcoin's $100K Surge: Is It Too Late to Invest in Cryptocurrency?

2024-12-06

Experts have long been fascinated by Bitcoin's potential. With its value on an upward trajectory, many are now pondering the possibilities and strategies for investing in this digital currency.

Unlock the Potential of Bitcoin with Expert Insights

Bitcoin's Ascent and Future Predictions

Experts firmly believe that Bitcoin's value will continue to soar. Some even predict that it could reach an astonishing $1.48 million by 2030. This upward trend has attracted the attention of investors worldwide. They can now directly purchase Bitcoin on crypto exchanges, through online stockbrokers, or via Bitcoin ETFs. Financial experts often advise keeping cryptocurrency investments as a small portion of a diversified portfolio to manage risk.Now that Bitcoin has surpassed the $100,000 mark, the average investor is left wondering about the implications. Was it too late to join the Bitcoin bandwagon? According to Investopedia, Bitcoin was valued at zero when it was launched in 2009. This year, it has doubled in value, hitting record highs and surpassing the $100,000 milestone. The rally is fueled by expectations of a favorable regulatory environment under a potential second Trump Administration. Paul Atkins, a crypto-friendly financier and former SEC member, is a significant sign in this regard.All this momentum has investors questioning whether it is the right time to invest in Bitcoin. Nigel Green, CEO of global financial advisory firm deVere Group, stated in an email exchange with USA TODAY, "The current impressive run will inevitably attract new interest and a certain degree of FOMO (fear of missing out)."Whether you have already invested in Bitcoin or not, it is clear that Bitcoin has become a global mainstream, legitimate asset class. There are various ways to invest in Bitcoin. You can buy Bitcoin directly on platforms like Binance.US, Coinbase, or Kraken and create a "crypto wallet" to hold your fractional shares. Even with a small investment, you can start your Bitcoin journey. For example, on Coinbase, the smallest investment you can make is $1, although with a 50-cent fee, you'll only get about 50 cents in Bitcoin.Online stockbrokers such as Fidelity and E-Trade, along with trading apps like Robinhood, also allow you to invest in Bitcoin and other cryptocurrencies. Here, you can start with a low investment, like $1 on Robinhood.Exchange-traded funds (ETFs) approved by the SEC this year provide another avenue for investing in crypto. Similar to buying stocks, you can invest as little or as much as you desire.If you decide to invest in Bitcoin, it should be within your overall investment strategy. Most finance experts recommend a diverse portfolio, with cryptocurrencies not exceeding 3%. Ayoola from NerdWallet advises, "If you have a higher tolerance for risk, then you may consider speaking with a finance expert before investing in cryptocurrencies. Bitcoin is bullish now, but its value can fluctuate in the short term."One investment strategy to consider is dollar-cost averaging. Identify a set amount of money you can afford to invest in Bitcoin and divide it into chunks to invest at different time frames. This helps average out the cost over time and reduces the impact of short-term price fluctuations.

Navigating the Volatility of Bitcoin

Bitcoin has a volatile history. It had a rollercoaster day, topping $103,000 and then dipping below $96,000. As of late Thursday afternoon, it was up about 113% for the year. Conventional wisdom suggests not investing when an asset is at its peak. However, Ayoola from NerdWallet pointed out that Bitcoin is volatile, and no one knows how much higher it will go.Many predict that Bitcoin will continue to rise. Anthony Scaramucci, founder of Skybridge and a former White House director of communications, has said Bitcoin could exceed $170,000 by mid-2025. Cathie Wood, CEO of Ark Invest, has predicted that Bitcoin will hit $1.48 million by 2030. Standard Chartered Bank expects Bitcoin to reach $200,000 by the end of 2025.While Bitcoin's volatility is a concern, Scaramucci believes it should be part of a long-term tactical asset allocation strategy. His new book, "The Little Book of Bitcoin," emphasizes the importance of including Bitcoin in portfolios.

Investing in Bitcoin: The Steps

There are several ways to invest in Bitcoin. Buying Bitcoin directly on a crypto exchange is one option. You can choose from platforms like Binance.US, Coinbase, or Kraken and create a crypto wallet. Each bitcoin is divided into Satoshis, with the smallest share being a hundred millionth of one bitcoin.Online stockbrokers also offer the opportunity to invest in Bitcoin. Fidelity, E-Trade, and Robinhood allow you to buy a fraction of Bitcoin with a low initial investment.Exchange-traded funds (ETFs) provide another way to invest in crypto. Approved by the SEC, these funds allow you to invest in Bitcoin similar to buying stocks.When investing in Bitcoin, it is crucial to consider it within your entire investment strategy. Ayoola advises that most finance experts recommend a diverse portfolio, with cryptocurrencies not accounting for more than 3%. She also warns that Bitcoin's value can dip in the short term, so you don't want to invest money that you'll need in the near future.In conclusion, Bitcoin presents both opportunities and risks. By understanding the various investment options and strategies, investors can make informed decisions and potentially benefit from its growth. However, it is essential to approach Bitcoin with caution and seek professional advice when needed.

Bitcoin, the digital currency that has captured the imagination of investors worldwide, achieved a remarkable milestone on Wednesday evening. It soared past the long-awaited $100,000 benchmark for the first time ever. This significant event sent shockwaves through the financial markets and sparked intense discussions among experts and enthusiasts alike.

Bitcoin's Historic Ascent and Future Prospects

Bitcoin's Initial Surge and Subsequent Pullback

By Thursday afternoon, the flagship cryptocurrency pulled back from the $100,000 milestone. It was recently higher by 0.28% at $99,140.00, according to Coin Metrics. This pullback followed some profit taking by investors, as they took advantage of the significant gains. On Wednesday night, it rose as high as $103,844.05, demonstrating the volatility and potential of this digital asset.The move came after President-elect Donald Trump announced plans to nominate Paul Atkins as chair of the Securities and Exchange Commission. This appointment could fulfill Trump's most important campaign promise to the crypto industry. Gary Gensler, who has been a controversial figure in the crypto space under his leadership, may be replaced. Trump congratulated bitcoiners in a Truth Social post Thursday morning, saying "you're welcome" for his part in helping send bitcoin to $100,000 and that "together, we will make America great again."

The Anti-Establishment Roots of Bitcoin

It's a day of celebration for longtime bitcoin investors who have held on through several boom-and-bust cycles. The original idea for bitcoin was proposed at the height of the 2008 financial crisis. Satoshi Nakamoto wrote in the Bitcoin Whitepaper that a "peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution." This anti-establishment nature has been a key factor in the popularity and growth of bitcoin.In recent years, the industry has demonstrated the value of bitcoin to much of the institutional investing world. BlackRock, Fidelity, Invesco, and others launched the first spot bitcoin ETFs at the beginning of this year. This "IPO" moment has helped drive the price higher, as institutions have shown growing demand for bitcoin. In November, Rick Wurster, the incoming CEO of Charles Schwab, said the firm is preparing to enter spot crypto trading, pending regulatory changes expected in the next Trump administration.

The Federal Reserve's View on Bitcoin

On Wednesday, Federal Reserve Chair Jerome Powell said bitcoin is "just like gold, only it's virtual, it's digital." He further clarified that "people are not using it as a form of payment, or as a store of value" and that "it's not a competitor for the dollar, it's really a competitor for gold." This statement highlights the unique position of bitcoin in the financial landscape and the challenges it faces in gaining mainstream acceptance."We're witnessing a paradigm shift. After four years of political purgatory, bitcoin and the entire digital asset ecosystem are on the brink of entering the financial mainstream," Mike Novogratz, CEO of Galaxy Digital, told CNBC. This shift is driven by various factors, including the actions of government and financial institutions and the growing demand from institutional investors.

Expected Pro-Crypto Initiatives

Bitcoin had been widely expected to reach the landmark $100,000 level since the U.S. presidential election. Excited investors sent bitcoin closer to this mark much sooner than initially anticipated; it rose as high as $99,849.99 on Nov. 22. There is much hope that Trump will deliver on several pro-crypto initiatives in the year ahead, including the establishment of a national strategic bitcoin reserve or stockpile, no taxes on crypto transactions, and opening up the crypto public equity markets with more IPOs."Over the long term, I'm bullish," Novogratz added. "It won't be a straight line up, and investors should always consider taking gains off the table. But, with a pro-crypto administration about to take charge in the U.S., it'll be hard for the rest of the world not to take notice."Bitcoin is now up more than 133% in 2024 and 42% since the election. This remarkable performance has attracted the attention of investors from all over the world and has solidified bitcoin's position as a major player in the financial markets.

Haliey Welch, a 22-year-old, made waves this summer with her viral “hawk tuah” TikTok video. This led to her taking a rather bizarre career turn by launching her own memecoin on the Solana blockchain. However, the value of this coin plummeted almost immediately, causing quite a stir in the cryptocurrency world.

The Tale of Haliey Welch's Memecoin Launch and Its Swift Downfall

Initial Fame and Merchandise

Over the summer, a man-on-the-street interviewer filmed Haliey Welch for a TikTok video. When asked about what makes a man go crazy in bed, she responded with “you gotta give him that ‘hawk tuah.’” This simple video took off in June, and Welch quickly capitalized on her newfound fame by releasing merchandise. She started to build a popular social media presence, joining Instagram in July and posting pictures with celebrities like Matt Rife and JoJo Siwa. She even had the opportunity to join country star Zach Bryan onstage at a June concert and throw out the first pitch at a New York Mets game in August.This rapid rise in popularity led to the launch of her podcast, “Talk Tuah,” in September. It quickly gained popularity and at one point ranked as the fifth most-popular podcast on Spotify’s daily charts, behind only Joe Rogan’s show. The podcast is owned by boxer and social media personality Jake Paul’s company Betr, and she has hosted guests such as Wiz Khalifa, Mark Cuban, and Brooke Schofield.

The Memecoin Launch and Its Immediate Plunge

On Wednesday evening, Welch launched the Hawk Tuah coin, which is widely regarded as a memecoin or a form of cryptocurrency created for entertainment purposes. It quickly hit a market capitalization of nearly $500 million. But just as quickly, it plummeted 95% to $25 million by Thursday afternoon, according to DexScreener data. As of Thursday afternoon after 4 p.m. EST, the coin’s price was $0.002439, down from a high of $0.04916 on Wednesday evening.The chaotic launch seemed to result in significant losses for some traders. Crypto YouTuber Coffeezilla, with over 3 million subscribers and whose real name is Stephen Findeisen, had a tense X space conversation with Welch and her team. He accused them of insider trading, which they denied. CoinTelegraph reported that about 80 to 90% of the Hawk Tuah supply was controlled by insiders or snipers—entities that purchase large amounts of a coin’s supply at its launch. Welch, in a post on X, said her team had not sold any tokens and had tried to stop snipers as best they could.

Legal Implications and Speculations

After the Hawk Tuah coin sparked backlash on social media, Burwick Law, a firm specializing in cryptocurrency, posted on X urging people who lost money on the memecoin to reach out to “learn about your legal rights.” However, it’s unclear whether the crash will have legal consequences, and there is no clear evidence of wrongdoing or illegality. Some critics have speculated—without proof—that Welch’s coin was launched as part of a “pump and dump” scheme, where the value of an asset, including a cryptocurrency, is quickly inflated and then sold off, causing the value to crash. The CFTC first cracked down on crypto pump and dumps in March 2021, charging two individuals on multiple counts of fraud for deceiving crypto investors and profiting more than $2 million in one such scheme.

Instagram Followers and Further Readings

Haliey Welch has an impressive 2.6 million Instagram followers, which clearly shows her rapid rise to internet fame. For those interested in learning more about the Hawk Tuah memecoin and its story, there are several further readings available. CoinTelegraph has an article titled “Hawk Tuah memecoin dumps 90% amid backlash over controversial launch,” Forbes has an article titled “The ‘Hawk Tuah’ Creator’s Podcast Ranks No. 5 On Spotify—Here’s How She Kept The Meme Going For Months,” and another Forbes article titled “‘Hawk Tuah’ Meme Explained: How Woman In Viral Interview Made A Reported $65,000 And Prompted TikTok Craze.”