Bitcoin reached a new high of $109,071 following President-elect Donald Trump’s inauguration, sparking optimism about its potential. However, despite this rise and the U.S. president’s crypto advocacy, many investors remain cautious about getting involved in cryptocurrency.
Some experts, like Guggenheim Partners’ Anne Walsh, note that while Bitcoin may have gained traction, it lacks a clear alternative use to traditional banking systems. Similarly, Norway’s sovereign wealth fund CEO, Nicolai Tangen, expressed skepticism about crypto becoming part of Norges Bank’s portfolio.
Bitcoin has seen significant price swings due to regulatory developments and market sentiment tied to Trump’s return to the U.S. Despite its rally, many investors see it as speculative rather than a stable investment option.
As for those who have invested in crypto, many refrain from direct exposure but remain open to companies that could be affected by digital assets. Experts like TCW Group’s Melissa Stolfi emphasize the need for technological expertise and innovation in navigating this evolving market space.
The optimism surrounding Bitcoin may also be tempered by broader macroeconomic concerns and the cautious approach of institutional investors. For now, the cryptocurrency remains a niche area, with many players steering clear to avoid potential risks while waiting for clearer signals on its future trajectory.
Source: https://www.reuters.com/business/finance/cryptos-charms-leave-some-investors-davos-cold-2025-01-23