Bitcoin has dropped 28% from its peak of $124,000 to below $90,000, causing concern among investors. Despite its volatility, Bitcoin has historically rebounded from significant drawdowns. Major holders, or Bitcoin whales, have been selling their holdings, raising questions about the cryptocurrency’s future.

President Trump’s favorable regulatory stance has contributed to the crypto-friendly environment. Legislation has been passed to clarify regulatory uncertainties, and the establishment of a U.S. Strategic Bitcoin Reserve supports Bitcoin’s growth. Institutional investors are increasingly interested in Bitcoin, potentially driving its value higher.

Bitcoin’s appeal as a digital gold alternative is enhanced by its finite token supply and increasing concerns about U.S. debt. Trump’s policies have opened doors for mainstream banks to offer crypto services, attracting more investors to Bitcoin. Despite its high volatility, Bitcoin could provide diversification benefits in a multi-asset portfolio.

Investors should consider Bitcoin’s potential as a digital gold and its correlation to traditional assets. While the crypto sector is relatively young, its growth potential is significant. Despite recent drops, Bitcoin’s long-term outlook remains positive, especially with increasing institutional interest and regulatory support.

The Motley Fool Stock Advisor team highlights the 10 best stocks to buy, excluding Bitcoin, that could offer substantial returns. With a history of market-crushing performance, Stock Advisor’s track record is impressive. Investors are encouraged to explore opportunities beyond Bitcoin for long-term growth and diversification in their portfolios.

Read more at Yahoo Finance: Is Bitcoin a Buy Right Now?