Key Points
- Bitcoin crossed the $100,000 mark during Trump’s presidency, sparking increased interest in the cryptocurrency.
- Thomas Peterffy, founder of Interactive Brokers, advises a cautious approach to Bitcoin investment, warning against excessive leverage.
The presidency of Donald Trump brought a significant change in the cryptocurrency market. Bitcoin [BTC] surpassed a significant milestone, trading at $103,000, which led to increased engagement with BTC from nations, institutions, and individuals.
Peterffy’s Advice on Bitcoin
Thomas Peterffy, founder of Interactive Brokers, suggested that people should hold some Bitcoin, but warned against excessive exposure. He proposed that individuals should allocate 2% to 3% of their net worth to the cryptocurrency, and cautioned against investing more than 10% of one’s assets in BTC. Peterffy described such exposure as “too dangerous.”
Peterffy’s Concerns
Peterffy expressed concerns over the rapid rise in margin balances, especially in volatile assets such as Bitcoin. He warned that the low margin requirements for BTC futures trading on platforms like the CME could encourage excessive leverage among traders. Peterffy cautioned that a sudden and steep Bitcoin price decline could trigger widespread bankruptcies, potentially destabilizing the financial ecosystem. He urged everyone to pay attention to these situations and take preventive measures.
At the time of writing, Bitcoin was trading at $100,571.92, marking a 2.97% increase over the past 24 hours. The RSI and CMF indicators suggest that the bullish momentum is far from over.
