It’s an extraordinary time for Bitcoin. The cryptocurrency hit $100,000 for the first time, but some finance experts have concerns.
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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.
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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 thebitcoin pricego higher.
“At the start of the year, Bitcoin ETFs were approved, which made it much easier to own Bitcoin with just a stock brokerage account. These factors were likely the catalyst for the Bitcoin move, and the perceived more bullish president was likely the cherry on the cake.”
The Next Big Event for Bitcoin After Hitting $100,000
There’s a growing enthusiasm around Bitcoin at the moment, and Barbaglio thinks great things are in store.
“The U.S. could take things further by adding Bitcoin to its financial reserves,” she said. “They might start with the Bitcoin they’ve already seized before making direct purchases. If that happens, it would set off a domino effect with other countries doing the same.
“We’re already seeing nations exploring how to integrate Bitcoin into their strategies — it’s only going to grow from here.”
However, Stanzione doesn’t see anything major happening for another three years.
“I am less optimistic in 2025, and it may be a year of consolidation and some large pullbacks as the recent gains are digested,” he explained. “This could be a case of a lot of good news has been already factored in. I don’t see any major catalyst on the horizon; the next halving is 2028.”
What This Means for the Crypto Landscape
While anything can happen, Barbaglio predicts the industry will explode.
“This isn’t just about Bitcoin — it’s about the whole ecosystem,” she said. “We’ll likely see a big boost for other cryptocurrencies, especially with another altcoin season around the corner. [Decentralized finance, or] DeFi is also a space to watch in 2025. Overall, it means more innovation, more investment, and more adoption.”
According to Stanzione, things are moving in a positive way for Bitcoin, but he remains cautious.
“Longer term, it’s looking good, but just remember cryptocurrencies are driven by crowd sentiment, and that can turn very quickly,” he warned.
With Trump throwing major support behind Bitcoin, it’s pushed crypto mainstream, and more eyes are on the industry, which could lead to growth opportunities.
“There’s much speculation about Bitcoin reaching even higher levels, but the key takeaway is its steady traction and increasing role in the global financial system,” per Barbaglio. “The momentum is real, and there’s still so much room for growth.”
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This article originally appeared on GOBankingRates.com: Bitcoin Valued at Over $100K: What That Could Mean for Your Wallet
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