The world's leading cryptocurrency Bitcoin reached a new all-time high of over 103,000 US dollars on the morning of December 5th. Since the reelection of Donald Trump as US President on November 5th, the Bitcoin price has risen by an impressive 44 percent, after surpassing the 90,000 US dollar mark for the first time in mid-November.

The rapid rise of Bitcoin is significantly driven by Trump's political support. The US President had already announced during his campaign that he would roll back regulation for cryptocurrencies and build a national Bitcoin reserve. The market received additional momentum from the appointment of cryptocurrency advocate Paul Atkins as head of the US Securities and Exchange Commission SEC, a move seen by experts as a signal for further price increases.

At the same time, falling interest rate expectations are positively affecting Bitcoin. As riskier asset classes like cryptocurrencies become more attractive with lower interest rates, this has further fueled the recent upward trend.

The optimistic outlook is supported by institutional investors increasingly investing in Bitcoin. U.S. trader Peter L. Brandt expects a price well over 100,000 euros for the coming year. Stijn Vander Straeten, CEO of Deutsche Börse subsidiary Crypto Finance, also sees further potential for price gains due to rising demand from professional investors.

Bitcoin is increasingly being viewed as the digital equivalent of gold. Fund manager Bert Flossbach refers to the cryptocurrency as a "digital form of gold," especially given its limited supply of 21 million coins. Current developments such as the entry of institutional investors could stabilize the price in the long term.

Despite the positive development, experts warn of the extreme fluctuations of cryptocurrency. An abrupt price drop remains possible, as the example of the FTX scandal a year and a half ago shows, during which the Bitcoin price temporarily plummeted to 16,000 US dollars. Consumer advocates advise investors with low risk tolerance to stay away from cryptocurrency, as an investment in Bitcoin is more speculative in nature and does not offer regular returns like dividends.

Investors should consider the tax consequences of a Bitcoin investment. Profits from trading cryptocurrencies are subject to tax in Germany if they exceed the exemption limit of 1,000 euros. Therefore, careful documentation of all transactions is essential.

Bitcoin remains a volatile but potentially lucrative asset class. Experts recommend holding cryptocurrencies only in a small percentage of the portfolio to minimize risks. Given the uncertainties and potential price fluctuations, a clear strategy is essential when entering the Bitcoin market.