Bitcoin Reaches Record High Amid Crypto Market Surge

Bitcoin soared to a new record high on Monday, surging over 10% to $87,300, reaching a peak of $87,445.07, according to Coin Metrics. The flagship cryptocurrency continues to show unstoppable momentum in the digital asset market. Kalshi data shared on Tuesday indicates that 60% of users are betting on Bitcoin’s rise reaching $100,000 before January. Other cryptocurrencies such as dogecoin, ethereum, and solana are also experiencing significant spikes, according to CoinMarketCap.

There are high expectations that cryptocurrencies could surge in a favorable regulatory environment following Donald Trump’s reelection as U.S. president and the success of pro-crypto candidates in Congress. The crypto industry has invested over $119 million in supporting pro-crypto congressional candidates this year, as reported by Reuters.

Bitcoin, a decentralized digital cash, is not controlled by any central bank, making it a favorite among proponents of decentralization and freedom. However, its wildly volatile nature makes it susceptible to fluctuations based on buyer and seller demand. With only 21 million bitcoins ever to exist, many are already in circulation.

Despite the Bitcoin Rise, the SEC Considers It a ‘Volatile Asset’

In January, the U.S. made a significant move by allowing bitcoin into mainstream investment funds, approving spot bitcoin exchange-traded funds (ETFs). This decision made it possible for anyone to invest directly in bitcoin through the stock market. However, the U.S. Securities and Exchange Commission (SEC) clarified that while it was not endorsing bitcoin, it was taking steps to educate the public about its risks.

SEC Chairperson Gary Gensler stated in January, “Bitcoin is primarily a speculative, volatile asset that’s also used for illicit activity including ransomware, money laundering, sanction evasion, and terrorist financing.”

“Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto,” he added.

During an event in Nashville this year, Trump pledged to make the U.S. “the crypto capital of the planet” by promising favorable regulations and the creation of a U.S. bitcoin strategic reserve. Sen. Cynthia Lummis from Wyoming, a staunch advocate for crypto-friendly policies, introduced the Bitcoin Act in July. This act proposes a decentralized network of secure bitcoin vaults managed by the U.S. Treasury, aiming to accumulate up to 1 million BTC—about 5% of bitcoin’s total supply.

When Bitcoin Backfires: Lost Fortunes and Lawsuits

Bitcoin is a high-stakes gamble, and despite the hype, it’s far from a secure or reliable investment. The decentralized nature of crypto means recovery isn’t as simple as resetting a password or contacting customer support. There’s virtually no safety net for support.

Consider the case of James Howells, who could be sitting on a massive fortune if he hadn’t accidentally discarded a hard drive containing 8,000 bitcoins, now valued at around $290 million. Despite his efforts to search a landfill, local authorities have blocked his attempts, leaving him with only a lawsuit and the realization of lost millions.

The Impact of the FTX Scandal

Among the scandals in the crypto world, few are as catastrophic as the downfall of Sam Bankman-Fried. The former FTX founder was sentenced to 25 years in prison for defrauding billions from his customers. FTX, once a leading cryptocurrency exchange, allowed users to trade digital currencies like bitcoin, ethereum, ripple, and tether. Bankman-Fried misused over $10 billion in customer funds, leading to the company’s sudden collapse in November 2022 and locking millions of users out of their accounts.

Bitcoin still faces skepticism from a global community wary of its risks and volatility. Like many high-risk investments, it’s subject to boom-and-bust cycles that can either lead to significant gains or losses. Investing in bitcoin requires a strategic approach, and while it promises financial freedom, it comes with risks. Whether it’s the future of finance or a speculative gamble remains uncertain, but its rising value has certainly sparked conversations.

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