Bitcoin was up about 20% this week, breaking above $ 22,000 for the first time to reach its all-time high of $ 22,158.40. The largest cryptocurrency in the world has risen by more than 13% in the past 24 hours. Bitcoin has increased by 204% since the beginning of the year. Why this wave? This type of yield can attract any investor to invest in bitcoin. Should you invest? What is the right way to invest for retail investors?
“Bitcoin exceeding $ 20,000 is a milestone in a year that has seen numerous ups and downs in the global economy. This is mainly due to numerous world-renowned investors, institutions that have put their weight behind Bitcoin. The precedent. Skepticism has now been replaced by widespread acceptance and recognition of Bitcoin as a strong investment option, ”says Sumit Gupta, CEO and co-founder of CoinDCX.
Institutions that invest in Bitcoin
The institutional adoption of cryptocurrency is taking place. Not just corporations, but financial institutions are selling gold and buying bitcoin, which has created trust in the minds of investors.
“Companies like microstrategy and massmutual insurer have both invested $ 475 million and $ 100 million in bitcoin, respectively. Additionally, large companies like Paypal now allow their customers to access cryptocurrencies. All these developments have built a lot of confidence in the minds of investors leading to higher prices, ”says Ashish Singhal, CEO and co-founder of CoinSwitch Kuber.
“Recently, Massmutual, an insurance giant, has made its way into investing in Bitcoin. Additionally, billionaire hedger fund manager Alan Howard is among supporters of a new institution-centric investment firm called One River Asset Management. which is looking at a lot like $ 1 billion allocation to bitcoin, “says Sumit Gupta
Cryptocurrencies like Bitcoin are the future and will play a pivotal role in the dynamics of world finance, experts believe. They expect bitcoins to soon surpass the 1 trillion market cap.
“There are at least 20 companies worldwide that have bitcoin on their balance sheets. And Fidelity, blackrock and others who manage trillions of assets are optimistic about bitcoin. With the additional institutional adoption we see that bitcoin easily surpasses the market cap by 1. trillion which is currently under 400 billion. This essentially sets the price of BTC at 50K USD over the next 12 months, “says Gaurav Dahake, CEO of Bitbns.
Should you invest in Bitcoin? Right direction
Experts say getting there early would be beneficial for Indians. Experts suggest investing in a disciplined manner just like SIP or a systematic mutual fund investment plan to reduce the risk of timing entry into bitcoins.
“Users should invest wisely via SIP in bitcoin because bitcoin is quite volatile. But overall to protect wealth and to ensure that their money’s value remains and does not devalue a bitcoin exposure is a must,” says Gaurav Dahake.