Bitcoin has recently demonstrated remarkable growth, capturing the attention of investors worldwide. We recently saw bitcoin’s price surge to an all-time high of $99,768, heartbreakingly close to $100,000.
Despite the disappointment of missing a round number, this is a huge milestone in the evolution of the $3.3 trillion cryptocurrency market.
A bitcoin buy-and-hold success story
This upward trajectory is not an isolated event but part of a broader trend. Pantera Capital, a leading investment firm specializing in digital assets, has projected that bitcoin could reach $148,000 by the middle of next year.
Yes, the headlines are full of bold claims by bitcoin maximalists – why should we listen to Pantera?
Here’s why, courtesy of Pantera’s Dan Morehead:
People totally thought we were crazy in 2013. There are still a lot of people very negative. And that’s why I’m so bullish. So many people are still negative. It’s far from being a bubble.
That’s right – they got into bitcoin in 2013!
Since then, their clear-eyed foresight have resulted in fund returns of 132,118% – it’s tough to argue with that.
Morehead explained the forecast of 50% bitcoin price growth over the next six months. The former Goldman Sachs trader said::
…he views Trump’s proposal for a U.S. Bitcoin stockpile as “rational.”
Holding gold in U.S. government’s reserves is “an incredibly crazy way to store wealth,” he said. “If they put some of that money in bitcoin, that is a fantastic way to have a reserve currency holding and I think it’s going to appreciate a lot over the years.”
I am not going to second-guess his claim that owning gold bullion is “crazy.” I would, however, point out that having all your reserves in a single asset is breaking pretty much the only investing rule everybody agrees on: Diversification!
Besides, respected financial analyst Lyn Alden has already done a great job of that. (Bookmark-worthy!)
Morehead also listed increased institutional adoption of crypto as a major lift for bitcoin price – and name-checked bitcoin spot ETFs as well.
Will bitcoin keep going up? Probably! Show me any other asset with a chart like this:
image via CoinMarketCap
That doesn’t mean that the road to $148,000 is a straight shot…
What we talk about when we talk about volatility
However, it’s important to acknowledge that bitcoin’s volatility remains a major factor in the decision to diversify your savings with crypto.
Volatility means that, when an asset’s price moves, it tends to make really big moves – for better or for worse. Down as well as up.
Right now, for example, analysts are quick to point out that the current rally is promising. And that investors should be prepared for “fluctuations.”
If you take a close look at that chart, it’s a real roller coaster.
12-13% gains in a single day.
But you can’t have those without also getting the chance of one-day, 50% declines.
Listen – crypto is not for everyone. If you’re incapable of taking the long view, if you’re going to obsess over every single price fluctuation? I’m sorry, but I don’t think diversifying with crypto will make you happy.
On the other hand…
If you do have a long-term perspective – if you see a one-day 50% price drop in an asset you already own as a fantastic chance to buy the dip? Basically, if you can appreciate this volatility as a feature rather than a bug of crypto?
Then, incorporating cryptocurrencies into your diversified retirement portfolio can offer significant growth potential. (Probably not 132,118% return – not without a time machine.) That’s where BitIRA shines…
We give you a dead-simple, self-service platform that makes diversifying your retirement savings with cryptocurrencies as easy as opening an online bank account. Open your very own bitcoin IRA any time, day or night, right here. It takes about 10 minutes – and who knows how many hours it’ll give you back in the long term?
We also have Digital IRA Specialists standing by to offer you a guided tour of the cryptocurrency marketplace. By leveraging BitIRA’s expertise, you can confidently navigate the evolving landscape of digital assets – and make sure you get your share of crypto’s promising future.
