The biggest cryptocurrency in the world, Bitcoin, reached an all-time high of about $72,968 on Tuesday—its third record-breaking rise in as many days—before dipping slightly from the top. Its market capitalization has increased to $1.42 trillion as a result. Because of its recent surge, bitcoin has also surpassed silver (worth $1.387 trillion), according to CompaniesMarketCap.
What is reason for the current upsurge?
The London Stock Exchange in the United Kingdom declared that it would accept applications for exchange-traded notes denominated in Ether and Bitcoin. Likewise, Thailand’s securities authority declared that it would grant individual investors access to foreign cryptocurrency exchange-traded funds (ETFs).
“The current crypto market rally has taken even the most optimistic crypto supporters by surprise, as the price is being driven by the massive institutional interest, in the form of strong inflows into the recently launched Spot Bitcoin ETFs in the US,” stated Parth Chaturvedi, Investments Lead at CoinSwitch Ventures.
Investment quotient
Chaturvedi recommended, ” The crypto market is already seeing a surge in volumes. However, retail participation is still nowhere close to the mania seen in 2021. We can expect interest in crypto as an asset class to become more mainstream.”
“Considering crypto is a new asset, investors must start with a modest allocation and focus on blue-chip crypto assets such as Bitcoin and Ethereum. These assets are generally less volatile and address real-world problems, making them attractive for long-term investment strategies. Maintaining a well-diversified portfolio within the crypto asset class is paramount for investors with some exposure and a solid portfolio. Diversification helps spread risk across different assets, mitigating the impact of adverse price movements on the overall portfolio. Remember the age-old advice: don’t keep all your eggs in one basket,” Sumit Gupta, co-founder at CoinDCX, mentioned in conversation with Livemint.
Gupta continued, “ Employing risk management strategies such as setting clear investment goals, using stop-loss orders, and regularly reviewing and rebalancing your portfolio based on market conditions can help mitigate risks.
“For long-term investors, strategies like HODL (Hold On for Dear Life) have proven rewarding in crypto like assets like Bitcoin and Ethereum. Additionally, we at CoinDCX offer a range of products such as Crypto Systematic Investment Plans (Crypto SIP) and Earn programs, providing structured approaches to accumulating assets over time.”
Rajagopal Menon of VP WazirX shared as quoted by Livemint, “Bitcoin has relentlessly ascended to $72,000; ETFs are gobbling up 10,000 Bitcoin a day on an average when production is just 900 a day. Whales like Michael Saylor’s MicroStrategy are leading the charge by acquiring an additional 12,000 Bitcoin, demand far outstripping supply. Bitcoin is up by +71.24% year to date; while retail investors are taking a cautious approach, it’s only a matter of time before they start adding BTC to their investment portfolios”.
