Bitcoin hits $100,000: What it means for Indian investors

On Thursday, the price of one bitcoin surged past the $100,000 mark for the first time. The demand for digital currency has continued to witness positive growth following the election victory of US President-elect Donald Trump. The upward trajectory became more significant in the week of the election results, registering a nearly 45 per cent increase in the four weeks since Trump’s electoral victory. 

Trump and his Republican Party have been at the forefront of friendlier crypto rules and regulations. He announced the nomination of Paul Atkins, a known cryptocurrency advocate, to lead the Securities and Exchange Commission (SEC). Atkins, currently the CEO of Patomak Global Partners, is recognised for his support of digital assets. His nomination follows Elon Musk’s leadership in the newly formed Department of Government Efficiency (DOGE) which are clear signal of a favourable regulatory environment for digital assets.

Jeff Mei, COO at BTSE, Hong Kong said, "Bitcoin's surge past the $100,000 mark is not just a milestone; it represents a pivotal moment for the cryptocurrency industry.Looking forward, Bitcoin could reach even greater heights as more institutions begin to perceive it as a viable store of value and allocate funds to Bitcoin ETFs.” 

At present, bitcoin stands at a value of around $103,000. The surge in Bitcoin's value presents significant opportunities for Indian investors. With the increasing popularity of cryptocurrencies around the world, Indian investors can add digital assets to their portfolios to diversify them and possibly increase returns. Moreover, a more favourable regulatory environment in the U.S. could lead to increased global adoption of cryptocurrencies, thereby boosting their legitimacy and stability. However, Indian investors must remain cognizant of local regulations and the inherent risks that may arise considering the volatility of the market. As more and more countries recognise this currency, Indian laws are also expected to transition into accepting cryptocurrencies as legal tenders. 

(Disclaimer: The opinions and investment recommendations provided by experts in this DNA report are their own and do not reflect the views of the website or its management. Users are encouraged to consult certified professionals before making any investment decisions.)