Bitcoin surged to unprecedented levels, crossing $99,000 overnight, marking a dramatic rally that has seen the cryptocurrency rise over 40% in just two weeks. Trading at $98,882 early Friday, according to CoinDesk, the digital asset is on the cusp of breaching the symbolic $100,000 threshold, a stark recovery from its $17,000 low after the collapse of FTX two years ago.

Drivers of the Rally

The rally comes as the cryptocurrency industry anticipates a more favorable regulatory environment under President-elect Donald Trump. A vocal supporter of cryptocurrency in recent months, Trump has pledged to make the United States the “crypto capital of the planet,” with plans for a bitcoin “strategic reserve.” His campaign’s acceptance of cryptocurrency donations and his appearance at a bitcoin conference have further boosted sentiment in the market.

Additionally, the approval of spot bitcoin exchange-traded funds (ETFs) earlier this year has attracted significant institutional and retail investment. These ETFs recorded $6 billion in trade volume during election week, according to data from Kaiko, further propelling bitcoin’s rise.

Regulatory Shifts and Economic Context

Market players are hopeful for regulatory clarity as Gary Gensler, the SEC chair who led a crackdown on crypto companies under President Joe Biden, is set to step down on January 20. Many in the industry view Gensler’s departure as an opportunity for a policy shift from enforcement-focused measures to more comprehensive legislative frameworks.

However, the bullish sentiment comes amid lingering concerns about the long-term stability of the market. Citi macro strategist David Glass noted that while current momentum is promising, the impact of regulatory changes will take time to materialize.

Risks and Volatility

Cryptocurrency remains inherently volatile, with past performance showcasing dramatic price fluctuations. For instance, bitcoin fell from nearly $69,000 in November 2021 to below $17,000 by late 2022 during the Federal Reserve’s aggressive rate hikes and the fallout from FTX’s collapse.

Experts caution that while bitcoin’s rally has been extraordinary, risks of corrections persist. “There’s no magic eight ball,” said Adam Morgan McCarthy, a research analyst at Kaiko. He advised investors to remain cautious, especially those with smaller portfolios, emphasizing the importance of managing risk responsibly.

Environmental Concerns

Bitcoin mining’s environmental impact continues to draw scrutiny. A recent study by the United Nations University found that the carbon footprint of global bitcoin mining in 2020-2021 was equivalent to the emissions from burning 84 billion pounds of coal. Despite increased use of cleaner energy, critics argue that bitcoin’s reliance on pollutive sources like coal remains significant.

As bitcoin approaches the $100,000 milestone, the cryptocurrency market faces a mix of optimism and caution. Investors and industry players alike are watching closely to see whether the rally can sustain its momentum in the coming weeks.

New car registrations across the European Union rose slightly in October, driven by strong performances in Germany and Spain, according to the latest data from the European Automobile Manufacturers’ Association (ACEA). The EU saw a 1.1% increase in new car registrations for the month, with notable growth in two major markets.

Germany’s car registrations rebounded by 6%, reversing three months of declines, while Spain experienced a robust 7.2% increase. However, not all countries saw growth. Italy’s new car registrations fell by 9.1%, and France also experienced a decline, with a 11.1% drop in registrations.

Looking at the year so far, new car registrations in the EU have risen by 0.7% from January to October, reaching approximately 8.9 million units. Italy saw a modest increase of 0.9%, while Spain posted a 4.9% rise. However, both Germany and France have faced declines in new car registrations, with Germany down by 0.4% and France experiencing a 2.7% drop over the same period.

Sigrid de Vries, ACEA’s director general, commented on the trend, highlighting the challenges faced by the electric vehicle (EV) market. “The latest year-to-date figures on market volume for battery electric (-4.9%) and plug-in hybrid cars (-7.9%) underline the urgent need to increase efforts to support the transition to zero-emissions vehicles,” de Vries said. She stressed the need for greater incentives and an expanded network of charging stations to encourage consumer adoption.

Battery-electric vehicles (BEVs) have seen a decline in sales, with a 4.9% drop in registrations in the first 10 months of 2024 compared to the same period last year. This decrease was primarily driven by a significant 26.6% drop in registrations in Germany. However, BEV registrations in October saw a slight uptick, increasing by 2.4% to 124,907 units.

Similarly, plug-in hybrid vehicle registrations also faced challenges. These vehicles dropped by 7.9% year-to-date, with disappointing performances in Italy and France. In October, plug-in hybrid car registrations fell 7.2%, reducing their market share to 7.7%, down from 8.4% in October 2023.

The slump in EV sales can be attributed to a combination of factors, including rising energy prices, insufficient incentives, and a lack of charging infrastructure. Additionally, higher tariffs on Chinese electric vehicles, following concerns over government subsidies, have made these cars significantly more expensive in Europe. This price increase, along with ongoing economic uncertainty and rising interest rates, has led to a dampened consumer appetite for electric vehicles.

With global economic pressures and geopolitical uncertainty also weighing on consumer sentiment, the EU faces significant hurdles in meeting its ambitious targets for the transition to zero-emissions vehicles.

The tech world is closely watching as Google navigates the aftermath of a significant legal ruling. In August, a U.S. judge determined that the company had illegally monopolized online search, sparking concerns over its dominance. Now, with the U.S. government pushing for more drastic measures, the future of Google’s business is uncertain.

The U.S. Department of Justice (DOJ) has requested that U.S. District Judge Amit Mehta consider forcing Google to break up its business to reduce its stranglehold on the search engine market. One of the more extreme proposals is to have Google sell its Chrome browser, which serves as the primary gateway to its search engine. Chrome is the world’s most popular web browser, and forcing its sale could significantly alter the way users interact with Google’s services.

The DOJ also suggested that Google divest its Android operating system, which powers the majority of smartphones worldwide, as a means of preventing the company from promoting its search engine over competitors’. While these measures would be drastic, the government has also proposed “behavioral remedies,” such as restrictions on how Google can pay other companies, like Apple, to have its search engine set as the default on devices.

For instance, Google pays Apple billions annually to make its search engine the default on Apple devices like iPhones and Macs. If these payments were curtailed, it could potentially open the door for competitors like Microsoft’s Bing to gain ground. However, the transition would not be simple, as Google’s search engine is deeply ingrained in daily internet use, and many users are unlikely to switch easily.

Industry analysts suggest that any disruption to these lucrative partnerships could have significant ripple effects, especially for companies like Apple, which earned an estimated $20 billion from Google in 2022. Dipanjan Chatterjee from Forrester Research noted that Apple, known for its commitment to customer experience, will likely develop a “Plan B” if the case leads to changes in how search engines are selected.

Another potential remedy being discussed is the implementation of a “choice screen,” similar to what has been mandated in Europe. Under this system, users would be prompted to select their preferred search engine when setting up a new device or browser. While this could level the playing field, experts doubt it would cause many users to abandon Google, given the company’s dominance and reputation for reliable search results.

The legal battle is expected to continue for years, drawing comparisons to Microsoft’s lengthy antitrust case in the late 1990s and early 2000s. In that case, the company faced a similar ruling but ultimately reached a settlement after a drawn-out appeal process. With Google now in the hot seat, it remains to be seen what long-term impact this case will have on its operations and the broader tech industry.