Bitcoin Crosses All-Time High. What Investors Should Keep In Mind
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The year 2024 started with excitement for the crypto industry due to the US Securities and Exchanges Commission (SEC) approving the spot Bitcoin ETFs and with the Bitcoin Halving scheduled for this April. When we look at Bitcoin in February 2023, it traded at the $23,000 level, but today it has surpassed the $69,000 level beating its all-time high. The market capitalization of Bitcoin reached $1.31 Trillion surpassing the $1.28 Trillion from November 2021. This surge can be attributed to increasing institutional demand, the rapid growth of Bitcoin spot ETFs, and the approaching Bitcoin Halving event the next month.
Bitcoin has already surpassed record highs in local currencies in many countries, such as China, Japan, the UK, India, Argentina, Turkey, and Egypt, among others. According to IntoTheBlock, the whales holding at least 1,000 Bitcoins have increased by 5 per cent year-to-date. Additionally, 97 per cent of all Bitcoin addresses are currently profitable with increasing demand. Out of 19.6 million BTCs currently circulating in the market, 13.6 million (close to 70 per cent) are in the possession of hodlers who have been holding on to Bitcoin over a one-year period which shows increasing long-term investor sentiment.
What Should Investors Do Now?
Timing the market all the time is challenging and can also introduce the risk of financial loss. Insufficient research before buying and selling can lead to unfavourable outcomes for investors. It is a prudent strategy to keep investing systematically and accumulating wealth over the long term.
Crypto Bull Market: Tips For Investors
Stay Informed:
Staying informed about the latest developments, news, and trends within the crypto space is important. In a bull market, this can help you make well-informed decisions and anticipate potential market movements.
Set Realistic Goals:
Define clear and achievable investment goals. Establishing realistic expectations helps avoid impulsive decisions driven by market euphoria and ensures a more measured approach to wealth accumulation.
Risk Management:
Implement robust risk management strategies. While a bull market can be lucrative, it’s crucial to assess and mitigate potential risks. Diversify your portfolio, set stop-loss orders, and allocate only a portion of your capital to high-risk assets.
Take Profits Strategically:
Capitalize on the upward momentum by periodically taking profits. Set predefined targets and stick to them, preventing greed-driven decisions. This approach allows you to secure gains and protect your investments against potential market corrections.
Consider Profits for Further Investments:
Reinvest profits wisely. Instead of solely cashing out, consider allocating a portion of your gains to new opportunities or strengthening existing positions. This approach maximizes the potential for continued growth during the bull market.
Regularly Reassess Portfolio:
Periodically review and reassess your portfolio. Ensure that your investments align with your financial goals and risk tolerance. Adjust your portfolio if necessary, based on changes in market conditions and your personal circumstances.
(The author is the CEO of Mudrex, a global crypto investment platform)
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.
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