Bitcoin Breaks the USD 93,000 Barrier, Sets New Records

Bitcoin reached a new high of USD 94,039.63 per bitcoin earlier in the day and increased 3.5 per cent to USD 93,943.26 on Wednesday

Bitcoin breached the USD 93,000 barrier on Wednesday, setting new records that fuelled hopes the popular cryptocurrency would soon approach the USD 100,000 mark.

Bitcoin hit a new high of USD 94,039.63 per bitcoin earlier in the day and traded up 3.5 per cent at USD 93,943.26 on Wednesday.

Bitcoin clocked a gain of nearly 11 per cent last week, scaling to an all-time high of almost USD 93,500. The rally was fuelled by hopes of pro-crypto Donald Trump's victory in the US presidential election.

Here's what fuelled the rally

Elon Musk-backed meme coin Doge helped other altcoins perform better as well. Today, DOGE now stands for the proposed Department of Government Efficiency, which Musk is set to head post the Trump administration's inauguration on January 20.

Bitcoin appeared to be handling it all well after enduring several setbacks over the years, including hacks, frauds and outright bans by authorities. It faced criticism over the high gas fees on the platforms and the massive energy footprint to mine a single bitcoin.

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Crypto markets on a high

Trump's promised support for digital assets propelled cryptocurrencies since his victory in the 2024 US Presidential Elections in November.

According to CoinGecko, traders are eyeing the possibility of lighter regulations, while the enthusiasm drove the global cryptocurrency market cap to a record high of USD 3.2 trillion.

How safe are crypto investments?

The recent rally in Bitcoin's price indicates that investors are keen on adding digital assets like cryptocurrency to their portfolio, owing to the potential for high returns and easy accessibility across geographies. However, the lack of regulatory oversight places it in a regulatory grey area.

Another major setback is that trading platforms remain vulnerable despite the security promised by the blockchain technology that powers cryptocurrencies. For instance, a cyberattack in July cost Indian cryptocurrency exchange WazirX over USD 230 million in digital assets and helped bolster the market mood.