- Bitcoin soared past $100,000 under Trump’s presidency, fueling 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 remarkable transformation in the cryptocurrency market.
After his victory, Bitcoin [BTC] reached a historic milestone, crossing the $100,000 mark and trading at $103,000, signaling a booming phase for the digital asset.
These unprecedented achievements have prompted countries, institutions and individuals to intensify their involvement in BTC.
Peterffy advises people to hold some Bitcoin
Amid this renewed enthusiasm, Thomas Peterffy, founder of Interactive Brokers, said: shared his perspective, advising people to hold “some Bitcoin” while warning against overexposure to the leading cryptocurrency.
Peterffy said:
“So I think anyone who doesn’t have Bitcoin should have some Bitcoin, but not too much.”
Furthermore, Peterffy, the billionaire founder of Interactive Brokers, advocated a measured approach to Bitcoin investing.
He suggested that individuals allocate 2% to 3% of their net worth to the cryptocurrency.
However, he also warned against investing more than 10% of one’s wealth in BTC, describing such exposure as “too dangerous.”
That said, it is important to note that while sharing his broader view of the crypto market, Peterffy emphasized:
“I’ll tell you honestly that I’m a little bit afraid of cryptos, because it can go at any cost, because it’s really just a fabrication. So it has no underlying value whatsoever.”
What concerns is Peterffy trying to highlight?
For those unaware, Peterffy also expressed concerns about the rapid rise in margin balances, especially in volatile assets like Bitcoin.
He warned that the low margin requirements for trading BTC futures on platforms like the CME could encourage excessive leverage among traders.
Peterffy warned that a sudden and steep drop in Bitcoin prices, ranging from 30% to 50% in one day, could lead to widespread bankruptcies.
Such a scenario could overwhelm clearing houses and potentially force them to transfer bad debts to clearing members, destabilizing the financial ecosystem.
So while Peterffy acknowledged the low probability of such an event, he insisted:
“I wish everyone would pay attention to these situations and try to take preventive measures and not increase the margin so easily.”
In the meantime, Bitcoin was trade at $100,571.92 at the time of writing, marking an increase of 2.97% over the past 24 hours, with RSI and CMF indicators suggesting that the bullish momentum is far from over.