From Morningstar: 2024-12-05 04:58:36

Bitcoin has surpassed $100,000 for the first time, driven by post-election rally expectations and hopes for a more crypto-friendly administration under President Trump. Analysts believe this milestone could attract new capital and spark more buying interest, while also serving as a profit-taking threshold for long-term investors.

Investors should be prepared for volatility in the cryptocurrency market, as prices can fluctuate significantly due to various factors. Dovile Silenskyte advises understanding the inherent volatility of bitcoin and being ready for potential price corrections and declines, while also acknowledging the possibility of substantial gains and significant losses.

When investing in bitcoin, it’s crucial to define a time horizon, understand the risks, and avoid trying to time the market. Directa SIM recommends a systematic approach like accumulation plans to mitigate volatility. It’s also important to invest only a portion of capital that you can afford to lose, without using funds earmarked for current expenses or emergencies.

For beginners, physically backed ETPs can be a suitable option for investing in bitcoin, as they simplify security, tax management, and asset custody. Europe offers pioneer instruments in this area, while the US recently approved a spot ETF. It’s essential to trade on secure, regulated platforms and avoid opaque operators without adequate security measures or insurance coverage.



Read more at Morningstar: Bitcoin Hits $100,000. Where Does Crypto Go Next?