Bitcoin has surpassed $100,000 with high volatility, leading to debate on bubble potential.

From Nasdaq

January 20, 2025 10:00:40 AM:

Bitcoin, the cryptocurrency that started trading in 2009, recently surpassed $100,000 for the first time in December 2024. Despite its strong performance, bitcoin is known for its high volatility, with a 40% increase in the month after the 2023 presidential election. Is bitcoin in a bubble at this price level, or is there still potential for growth?

Bitcoin has shown extreme volatility compared to equity indexes over the past four years, making it a risky investment. However, its historical returns have been impressive, with gains ranging from 30,203% in 2010 to 121% in 2024. The debate continues on whether the potential rewards outweigh the risks associated with investing in bitcoin.

Supporters of bitcoin’s continued growth point to easing regulation, restricted supply, and its positive cyclical history as factors favoring a higher price. On the other hand, critics argue that bitcoin lacks intrinsic value, consumes excessive energy, and remains impractical for daily use. The ongoing debate between bulls and bears will shape the future of bitcoin’s price and volatility.

Read more at Nasdaq: Is Bitcoin a Bubble at $100K, or Should I Get in Now?