Bitcoin’s price has surged past $90,000 since mid-November, inching closer to the $100,000 mark. This follows a 40% increase since the U.S. presidential election and continued momentum from the approval of spot Bitcoin ETFs earlier this year.

  1. Spot Bitcoin ETFs: New ETFs simplify Bitcoin investing by eliminating the need for crypto exchanges and providing secure custody. This has attracted traditional investors.
  2. Mainstream Adoption: Institutional interest and regulatory clarity have boosted confidence in Bitcoin as a legitimate asset.

Should You Invest?

  • Speculative Asset: Bitcoin doesn’t generate income (like dividends) and relies solely on price gains.
  • Volatility: It’s highly unpredictable, losing over 60% in 2022 but surging over 600% in five years.
  • Portfolio Role: Experts recommend limiting exposure to 1%-5% of your portfolio due to the high risks.

Bitcoin’s rise is impressive but risky. Only invest what you can afford to lose and focus on diversification. Avoid FOMO and evaluate its long-term potential carefully.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

This story was originally featured on Finance.Yahoo