The value of Bitcoin has exceeded the $120,000 mark for the first time, prompting caution from economic experts who describe the surge as highly volatile and risky. Analysts warn that while the cryptocurrency market has seen significant gains, it remains susceptible to sharp fluctuations due to regulatory changes, market sentiment, and macroeconomic factors.
The unprecedented rise reflects growing institutional interest and broader adoption of digital assets, despite ongoing concerns about their long-term stability. Some investors view Bitcoin as a hedge against inflation, while others remain skeptical about its role in traditional portfolios.
Regulatory scrutiny continues to intensify globally, with policymakers debating how to manage the risks associated with decentralized finance and speculative trading. Experts advise investors to approach the market with caution and to diversify their holdings to mitigate potential losses.