According to CompaniesMarketCap, bitcoin has also been put ahead of silver (valued at $1.387 trillion) due to a recent rally.
Also read: Bitcoin market cap surpasses Silver to take eighth place in global assets
What drives the rally?
The recent surge in momentum can be largely attributed to the successful launch of spot Bitcoin exchange-traded funds (ETFs) in the United States on January 11. These ETFs, led by prominent financial entities such as BlackRock Inc. and Fidelity Investments, collectively garnered approximately $9.5 billion in net inflows.
In addition, developments in other regions contribute to this momentum as well. In the UK, the London Stock Exchange has announced its willingness to consider applications for Bitcoin and Ether exchange tickets. Similarly, Thailand’s securities regulator has indicated its intention to allow retail buyers access to foreign crypto ETFs.
In the UK, the London Stock Exchange (LSE) has revealed its readiness to receive applications for Bitcoin and Ether exchange tickets. Meanwhile, Thailand’s securities regulator has indicated its intention to allow retail buyers access to foreign crypto ETFs.
Also read: Bitcoin boom: Why you shouldn’t invest in cryptos yet? These are 7 main reasons
“The current crypto market rally has surprised even the most optimistic crypto supporters, as the price is driven by the massive institutional interest, in the form of strong inflows into the recently launched Spot Bitcoin ETFs in the US,” said Parth Chaturvedi. , Investments Lead, CoinSwitch Ventures.
Should you invest?
Chaturvedi further said, “The crypto market is already seeing an increase in volumes. However, retail participation is still nowhere near the mania seen in 2021. We can expect interest in crypto as an asset class to become more mainstream.”
The recent rally in Bitcoin price and significant developments such as the SEC’s approval of Bitcoin ETFs and the imminent Bitcoin Halving have indeed spurred renewed interest in crypto.
These milestones attract both new and experienced investors, injecting smart capital into the market. However, considering crypto is a new asset, investors should start with a modest allocation and focus on crypto assets like Bitcoin and Ethereum, experts say.
“Considering crypto is a new asset, investors should 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 issues, making them attractive for long-term investment strategies. Maintain a well-diversified portfolio within the crypto asset class is most important 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 old advice: don’t keep all your eggs in one basket,” CoinDCX co-founder Sumit Gupta told Livemint.
Gupta further added, “Employing risk management strategies like setting clear investment objectives, using stop orders and regularly reviewing and rebalancing your portfolio based on market conditions can help mitigate risks.
Also Read: CoinSwitch becomes the first Indian cryptocurrency trading platform with 2 crore registered users, after Bitcoin surges
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 System Investment Plans (Crypto SIP) and Earn programs, providing structured approaches to accumulate assets over time.”
According to Rajagopal Menon, VP WazirX, the demand for bitcoin far outstrips supply. “Bitcoin has steadily climbed to $72,000; ETFs are gobbling up 10,000 Bitcoin a day on average when production is only 900 a day. Whales like Michael Saylor’s MicroStrategy are leading the charge by acquiring another 12,000 Bitcoin, demand far outstripping supply. Bitcoin is up +71.24% year so far; while retail investors are taking a cautious approach, it’s only a matter of time before they start adding BTC to their investment portfolios,” Menon told Livemint.
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Published: 12 Mar 2024, 22:17 IST