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“On Monday, the biggest cryptocurrency in the world crossed the $87,000 mark for the first time.”
Bitcoin has reached another record high as investors continue to invest in crypto after Donald Trump's win last week. The price of Bitcoin was $87,083, which was higher than 28% the previous week.
Trump's victory in the U.S. presidential election has led to a boost in cryptocurrencies and investments in the industry. Analysts credit many recent gains to the next administration's predicted "crypto-friendly" position. This position may result in more clarity about regulations and flexibility.
Why are Bitcoin and other currencies rushing right now?
Because of last week’s election results, the value of Bitcoin and other cryptocurrencies is increasing significantly.
Donald Trump has promised to establish a "strategic reserve" of bitcoin and turn the United States into "the crypto capital of the planet." In July, he attracted supporters at a Bitcoin protocol and accepted crypto payments for his campaign. He also started a new crypto trading business called World Liberty Financial with family members.
Investors in the cryptocurrency sector celebrated Trump's win. They believed he would be able to pass the laws and regulations they had long campaigned for.
Assets like bitcoin have seen significant gains in the last year or two, even before the post-election rally. The early success of spot bitcoin ETFs, which US regulators recognized in January, is mainly responsible for the rise.
What are the Risks?
Bitcoin and other cryptocurrency assets have a history of rapid price fluctuations. This can occur unexpectedly during the weekend or overnight in trade, which goes on all day and all night. History proves that you may lose money just as quickly as you make it. The overall state of the market impacts long-term price behaviour.
At the beginning of the COVID-19 outbreak, Bitcoin's price was just over $5,000. By November 2021, it had risen to almost $69,000, but it fell during a furious round of rate hikes to control inflation. Then, after FTX's collapse in 2022, public trust in cryptocurrencies was severely damaged.
What are the Impacts on Climate?
The process of "mining," which creates assets like Bitcoin, uses a lot of energy. Throughout history, operations that depend on polluting sources have raised special concerns.
Bitcoin mining in 76 countries has a carbon footprint equal to the emissions from 190 natural gas-fired power units or 84 billion pounds of coal. Bitcoin's electrical needs were primarily met by coal (45%), natural gas (21%), and hydropower (16%).
The energy source used is mostly responsible for the environmental effects of Bitcoin mining. According to industry analysts, the use of clean energy has grown recently, keeping track of global regulators' increasing demands for climate protection.
