Bitcoin crosses $112,000 mark for the first time ever
What's the story
Bitcoin has hit a new milestone by crossing the $112,000 mark for the first time. The cryptocurrency rose as much as 3.1% to hit $112,009. The surge is part of a wider rally in risk assets and technology stocks. This year alone, Bitcoin has gained nearly 20%. The rise in the cypto token's value has also had an impact on traditional markets. NVIDIA hit $4 trillion valuation on Wednesday, helping push the S&P 500 close to record levels.
Financing boost
Surge benefiting new generation of Wall Street deal makers
The recent surge in Bitcoin's value is also benefiting a new generation of Wall Street deal makers and corporate executives. These include crypto treasury companies that are now able to use the token's advance as leverage for new financing rounds. This trend is further validation for crypto bulls who bet on a more permissive regulatory environment under President Donald Trump after the November election.
Caution advised
Traders warned to stay cautious
Despite the bullish trend, Vincent Liu, chief investment officer at crypto trading firm Kronos Research, warned traders to be wary of possible profit-taking or macroeconomic shifts that could trigger corrections. He said while the trend is firmly bullish for now, it is important to remain vigilant in a year marked by market volatility.