Bitcoin’s value has surged past the previous all-time high of $73,800, now trading at around $88,000. The surge is attributed to growing optimism driven by a new presidential administration seen as pro-crypto. While institutional investors have been a game-changer for Bitcoin, recent research shows that 60% of them hold digital assets, with plans to increase their holdings.
The increasing legitimization of Bitcoin can be attributed to the influx of capital from institutions. The Securities and Exchange Commission’s (SEC) approval of spot Bitcoin exchange-traded funds (ETFs) has made it easier for institutional and retail investors to access the asset. This provides liquidity and market stability, critical components for most institutional investors.
Bitcoin is seen as a store of value, similar to gold, due to its scarcity and ease of storage. Its potential use cases include sovereign nations using it to protect their wealth, strengthening corporate balance sheets, and facilitating cross-border payments.
However, there are hurdles, including regulation and competition from altcoins. Despite this, Bitcoin has cemented itself as the central digital asset, with a strong chance of being the only winner in the market. For investors, focusing on the long-term value rather than short-term gains is key. Now may be an opportune time to invest, but it’s essential for risk-averse investors and those nearing retirement to consider safer options.
Source: https://www.fool.com/investing/2024/11/13/is-it-too-late-to-buy-bitcoin-after-it-rockets-to