Bitcoin has surpassed the $100,000 mark following a massive rally driven by the election of Donald Trump and his plans for the crypto industry. The President-elect signaled a lighter regulatory approach by nominating cryptocurrency advocate Paul Atkins as the next chair of the Securities and Exchange Commission (SEC). Since Trump’s election on November 5th, Bitcoin’s value has climbed from $69,374 to as high as $103,713, according to CoinDesk.
Atkins, a former SEC commissioner and supporter of less market regulation, has been welcomed by the crypto industry.
While some experts predict future gains, the unpredictability of the crypto market poses risks for investors. Bitcoin’s price is dependent on larger market conditions, and history has shown that investments can be lost as quickly as they are made. The recent approval of spot bitcoin ETFs, under Gary Gensler’s leadership, has also influenced Bitcoin’s price trajectory. Gensler will step down when Trump takes office, and the incoming administration is expected to bring lighter regulation to the crypto industry.
However, the environmental impact of bitcoin mining remains a concern, with operations often relying on pollutive energy sources. Recent research has shown that bitcoin mining accounts for a significant carbon footprint, equivalent to burning billions of pounds of coal or running multiple power plants. As calls for clean energy and climate protection grow, the industry will need to address these environmental concerns. Investors are advised to approach the volatile crypto market with caution and not take on more risk than they can afford.
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