Is it too late to buy bitcoin after it hit $100,000? Experts weigh in.

The worth of bitcoin topped $100,000 for the first period ever late Wednesday, and soared to a fresh high in early buying and selling on Thursday.

The recent gains extended a rally set off by the election of former President Donald Trump, who is viewed as amiable toward cryptocurrency.

In a post on Truth Social on Thursday, Trump took financing for the gains: “CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!!.”

Since Election Day, the worth of bitcoin has climbed nearly 50%. That act far outpaces the S&P 500, which has risen about 5% over the same period.

But the breakneck pace of bitcoin’s growth poses a quandary for investors: Is it too late to buy into the rally, or will the excellent times continue to roll?

fund analysts who spoke with ABC information gave rationale to be optimistic about further gains, citing expectations of a amiable regulatory surroundings under Trump and continued profit rate cuts at the Federal savings.

The surge of momentum alone may pull investors from the sidelines, propelling the worth of bitcoin higher, they added.

Analysts, however, warned that bitcoin remains a highly volatile property, making it all but unfeasible to forecast where its worth will leave next.

“Bitcoin clearly has some things going in its favor,” said Mark Hamrick, Washington bureau chief and elder economic analyst for Bankrate.com.

“The issue with bitcoin is that it’s ambiguous what drives the underlying fundamentals of the property,” Hamrick added. “If somebody were to inquire me where bitcoin is going in the next week, month or year, I have no concept.”

At least for now, bitcoin is on a tear. The latest surge coincided with a piece of excellent information for the crypto industry: Trump’s nomination on Wednesday of Paul Atkins to chair the stocks and bonds and swap percentage.

Atkins, the CEO of consulting firm Patomak Partners, serves as co-chair of the Token Alliance, a cryptocurrency advocacy organization.

Once a crypto critic, Trump has vowed to bolster the cryptocurrency sector and ease regulations enforced by the Biden administration. Trump has also promised to establish the federal government’s first National Strategic Bitcoin savings.

The positive developments for crypto extend well beyond Trump. In recent months, the Fed has cut profit rates and forecasted additional rate cuts to arrive. In hypothesis, lower rates could ease customer borrowing costs and drive more fund in bitcoin.

powerful act this year has also been driven by U.S. approval in January of bitcoin ETFs, or swap-traded funds. Bitcoin ETFs allow investors to buy into an property that tracks the worth movement of bitcoin, while avoiding the inconvenience and hazard of purchasing the crypto coin itself.

Bret Kenwell, U.S. fund analyst at eToro, said those favorable conditions for bitcoin are likely to persist.

“Those same catalysts have the longer-term picture still looking luminous for bitcoin,” Kenwell told ABC information in a statement.

Still, experts offered up warnings about the volatility of bitcoin. Even amid its meteoric rise this year, bitcoin experienced a temporary downswing that slashed one-third of its worth, Kenwell noted.

As recently as 2021, bitcoin suffered a downturn that cut its worth in half. The same thing happened a year earlier, when the initial outset of the pandemic triggered a panic among investors.

Bitcoin has proven sensitive to negative developments for crypto and the wider economy in part because it is challenging to peg the worth of the property, Steve Sosnick, chief strategist at Interactive Brokers, told ABC information.

distribute investors typically assess the worth of a business’s shares by evaluating its service or product. Since bitcoin isn’t currently used as anything besides a store of worth, the lack of a obvious utility leaves little basis for assessing bitcoin’s worth, which contributes to its volatile worth movements, Sosnick added.

“Bitcoin isn’t really used in the real globe,” Sosnick said, noting the property could still shift higher nevertheless.

“correct now, the community is very enamored with bitcoin,” Sosnick said. “It’s silly to declare that any number – whether it’s $75,000 or $100,000 or anything – is the complete of the rise.”