• Bitcoin soared past $100,000 under Trump’s presidency, driving global crypto enthusiasm.
• Thomas Peterffy warns against excessive leverage and advocates measured Bitcoin investments.

Donald Trump’s presidency as the 47th President of the United States has ushered in a notable transformation in the cryptocurrency market.

Following his victory, Bitcoin [BTC] achieved a historic milestone, crossing the $100,000 mark and trading at $103,000, signaling a booming phase for the digital asset.

This unprecedented performance has prompted nations, institutions, and individuals alike to intensify their engagement with BTC.

Peterffy advises people to hold some Bitcoin

Amid this renewed enthusiasm, Thomas Peterffy, founder of Interactive Brokers, shared his perspective, advising people to hold “some Bitcoin” while cautioning against excessive exposure to the leading cryptocurrency.

Peterffy said, 

“So, I think that anybody who does not have Bitcoin should have some Bitcoin, but not too much.” 

Additionally, Peterffy – the billionaire founder of Interactive Brokers, advocated for a measured approach to Bitcoin investments.

He suggested that individuals allocate 2% to 3% of their net worth to the cryptocurrency.

However, he also cautioned against investing more than 10% of one’s assets in BTC, describing such exposure as “too dangerous.”

That being said, it’s important to note that while sharing his broader perspective on the crypto market, Peterffy emphasized, 

“I tell you frankly, I am sort of scared of of cryptos because, you know, that can go to any price because it’s basically just a figment of the imagination. So it doesn’t have any, any, any underlying value.” 

What are the concerns Peterffy is trying to highlight?

For those unaware, Peterffy also voiced concerns over the rapid rise in margin balances, particularly in volatile assets such as Bitcoin.

He cautioned that the low margin requirements for BTC futures trading on platforms like the CME could encourage excessive leverage among traders.

Peterffy warned that a sudden and steep Bitcoin price decline, ranging from 30% to 50% in a single day, could trigger widespread bankruptcies.

Such a scenario might overwhelm clearinghouses, potentially forcing them to transfer bad debt to clearing members, thereby destabilizing the financial ecosystem.

Thus, while Peterffy acknowledged the low probability of such an event, he urged,

“I wish that everybody please pay attention to these situations and try to take preventive measures and do not extend margin so easily.”

In the meantime, Bitcoin was trading at $100,571.92 at press time, marking a 2.97% increase over the past 24 hours, with RSI and CMF indicators suggesting that the bullish momentum is far from over.

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