Bitcoin exposure is essential for investors following U.S. election.
Not owning bitcoin may lead to financial peril, warns NYDIG’s Cipolaro.
The recent U.S. presidential election, resulting in a significant win for President-elect Donald Trump and the Republican Party, has intensified the spotlight on Bitcoin as an essential asset, according to Greg Cipolaro, Global Head of Research at New York Digital Investment Group (NYDIG). Cipolaro strongly believes that the election outcome marks a pivotal shift for bitcoin adoption in institutional portfolios, with no remaining rationale for investors to avoid exposure.
In an email, Cipolaro underscored that “there are no excuses now” for investors to maintain a bitcoin allocation of zero. He emphasized that bitcoin is now accessible through “easy-to-access, well-regulated products such as ETFs” and is rapidly becoming a “political imperative.” He further asserted that investors risk “financial peril” by ignoring the asset, as it increasingly emerges as a mainstream investment option.
NYDIG, a subsidiary of Stone Ridge Holdings Group, focuses on providing bitcoin-focused financial services, including custody solutions tailored for institutional investors. Cipolaro’s stance aligns with broader industry perspectives, as evidenced by the recent price surge in Bitcoin, which has appreciated approximately 18% over the past week.
Moreover, Analysts attribute this rally to the election’s perceived positive impact on the broader cryptocurrency ecosystem, which could lead to enhanced regulatory clarity and increased institutional interest.
Optimistic On Bitcoin
Supporting this sentiment, JPMorgan recently highlighted expectations for it and gold to gain from the election’s results, with bitcoin being further supported by institutional moves, such as MicroStrategy’s substantial bitcoin acquisition plan worth $42 billion. BitGet Research also noted that sidelined funds may enter the market, driven by fear of missing out, potentially pushing bitcoin’s price higher.
Meanwhile, market analysts are optimistic about it’s future performance. Bernstein analysts reiterated their forecast for it
o reach $90,000 by the end of this year, with a long-term target of $250,000 by 2025. With growing institutional involvement and political endorsement, it appears poised for continued growth as a staple in investor portfolios.
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