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We’ve heard a lot about cryptocurrency this year. The digital asset has hogged a lot of media attention as it rocketed into the financial mainstream. Since only New Years’, Bitcoin is up 80%, and that’s including last month’s price dip.
It’s not too late to get on board. In fact, we’re still just getting started.
Bitcoin’s recent price surge isn’t a bubble formation like it was in years past. This time, we’re seeing big institutional money pile in. These days, everyone wants exposure to the crypto market—not because it’s a speculative asset, but because Bitcoin finally offers real, secure diversification benefits for investors.
More Institutional Money In Bitcoin
This year, the world’s largest Bitcoin ETF, Grayscale Bitcoin Trust, has the upper hand on even Tesla. The electric automaker is the S&P 500’s powerhouse, and yet Grayscale has outpaced its year-to-date growth by nearly 50%.
Last week, NEXON Co. purchased $100 million worth of Bitcoin as a reserve asset, citing value protection reasons. When was the last time you heard of a publicly traded company investing in Bitcoin as part of a “disciplined strategy for protecting shareholder value”?
April’s Bloomberg Crypto Outlook forecasts a price high of $400,000 by year-end (up from $58,000 now!). Plus, the world’s leading stable coin, Tether (USDT), has increased in volume 10x while under investigation from U.S. regulators since 2019. The crypto market is growing and it’s resilient, as investors and institutions around the world have proven that there’s a demand for a digital version of the greenback.
BTC Price Trend Chart (Source: Bloomberg Outlook)
A New Dawn for Crypto Investors
What does all of this mean? It signals that we’re truly in a new era of cryptocurrency investing, where both small-time investors and large multinational corporations are getting in on the action for the long haul. And as more and more companies, investment funds, and endowments pile in, we’re likely to see significant gains in the months ahead.
Although not without its critics (Charlie Munger, for one, clearly isn’t a fan), Bitcoin remains one of the strongest tools for diversification and risk management on the market. It’s funny how Bitcoin’s biggest naysayers are often the extremely wealthy—those who have the most to lose if cryptocurrency competes on even footing with fiat currency.
Will there be volatility ahead? Certainly. Whenever you have a new highly liquid asset class hit the market, there’s bound to be unpredictable and dramatic price action. But the long-term outlook on crypto is strong, and April proved that dips and sell-offs won’t crash momentum.
In mid-April, President Biden announced a tax hike on capital gains. The fallout included a short-lived sell-off in the crypto market, which saw Bitcoin slump below $50,000. Yet only two weeks later, BTC is back above $58,000 and is eyeing new all-time highs.
Don’t Miss The Biggest Bull Market Yet
This isn’t 2013 or 2018. Today’s cryptocurrency market is mature, solidified, and has the backing of major financial institutions. This is the moment we’ve been waiting for. Ready to get in on the gains?
Whether you want to add more Bitcoin to your IRA before it hits another all-time high, or want to diversify your portfolio with some red-hot altcoins, May is the perfect window of opportunity for buying crypto.
To get started, check out our list of the best crypto IRA companies—there, you’ll find plenty of companies that can help you open a new Bitcoin IRA or add cryptocurrencies to your existing self-directed IRA.
Mark Turner is an author and editor at Sophisticated Investor. He has over two decades of experience in the financial industry as a broker in both Chicago and New York and has written for several top tier publications. He currently covers the topics of alternative investments, geopolitical events, US economy, portfolio diversification and others.
