The cryptocurrency market has gained much traction in the past decade with bitcoin leading the race. Bitcoin price has been setting new records by touching all-time highs and hyping the investment model as a whole. In a recent move to its development, bitcoin price has reached US$67,000 in October, increasing the expectations of crypto investors in the digital token. However, after reaching the record high price, bitcoin has backed off to its old position and is being traded at US$58,000 to US$63,000 since then. Although long-term investors are less concerned about the surmounting volatility, it is important to look for ways to have less impact on their potential bitcoin investment while the market is unstable. That is why they should use certain bitcoin tactics to keep up in the race.
With US$2.71 trillion market capitalization, the cryptocurrency market is heading to the moon recently. Fortunately, bitcoin and other cryptocurrencies like Dogecoin and Shiba Inu that gained dominance over the past month have introduced more new investors to the crypto circle. Although bitcoin price has reached another all-time high recently, it is currently on a massive bull run. However, despite the sudden surge that was followed by rational plummets, bitcoin daily and the weekly average price is remaining above the US$60,000 mark.
The new record high came at the backdrop of Bitcoin ETF debuting at the New Tork Stock Exchange. Before reaching this milestone, bitcoin suffered big time for the past six months. Since reaching a record high in mid-April, bitcoin was haunted by many circumstantial changes and government actions. First Elon Musk, the major supporter and trend setter in the crypto market, denied to accept bitcoin payment in his company due to its high energy consumption. Later, China implemented a blanket ban on cryptocurrencies to stop bitcoin mining in the country. These made bitcoin price reach as low as US$35,000 in the recent past. However, bitcoin managed to bounce back with normal enthusiasm. But despite its growth, crypto investors should always have a backup plan to support their potential investment in case things go wrong. Therefore, we give you an outlook on some bitcoin tactics that can be used to secure your investment in the cryptocurrency market.
The next big thing in bitcoin price is to reach US$100,000. Although many cryptocurrency enthusiasts have so far suggested that reaching this milestone would be a matter of time and there are possibilities it could happen before the end of 2021 seems quite impossible. But before reaching this long-term goal, bitcoin must first bump into its mid-range resistance of US$86,000 in the price chart.
Still, institutional investors are the biggest expectations in the bitcoin market. Once institutional investors and bitcoin ETFs go mainstream and gain more adoption, bitcoin will have a far longer path than to reach US$100,000.
Although bitcoin is expected to reach record high prices in the coming days, crypto investors should always keep a low key when it comes to BTC investments. Remember that the cryptocurrency market as a whole is extremely volatile and bitcoin is no different. Everytime the bitcoin price made a new milestone, it was hit by a slump that pushed the digital token's price to start its growth path from mid-way. Therefore, experts suggest crypto investors keep their crypto investment at less than 5% of their total portfolio.
Bitcoin ETF's Open the Backdoor for Investors: Bitcoin ETF (exchange-traded funds) is not a new story. But its debut in the US exchange made a huge difference in the market. Bitcoin ETFs were available in Canada and European countries even before they entered the US. However, their US debut is significant because the country has been reluctant to allow Bitcoin ETFs and blocked them with regulatory measures for a long time. Such bitcoin ETFs are better source compared to direct bitcoin investments. Investors can track bitcoin's spot price indirectly through the use of contracts overseen in Bitcoin ETFs.
Begin from a Small Amount: The cryptocurrency market is young compared to other investment models we have today. With just 10 years of history, it is very uncertain to make every prediction very accurate. The same goes for bitcoin as well. Therefore, always begin your investment by infusing a minimum amount. Gradually increase the potential investment overtime on fixed intervals.
Buy Institutional Investors' Stocks: The next big thing in bitcoin market is the invasion of institutional investors. Yes, more and more corporate companies are infusing funds on bitcoin and building a crypto portfolio for themselves. New investors can take this as an opportunity to indirectly invest on bitcoin by buying the institutional investors' stocks. For people who are new to cryptocurrency, this investment model will help big time.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.