Crypto Rallies as Bitcoin Once Again Surges Past $60,000 But Should Everyone Invest?

Brandon Wang

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The last week or so has been absolutely wild for just about everything in the crypto space. After what seemed like a small pull back in the markets, the crypto market is once again coming close to its all time highs. Bitcoin has risen past the $60,000 mark again and Ethereum may be coming close to $4,000 again.

Coincidentally, this huge crypto rally happened just days after Michael Burry, the popular celebrity investor, tweeted about finding out how to short cryptocurrencies. He has since deleted his twitter as Bitcoin and alt coins surged upwards in the past week. This is not his first time erasing his social media presence after some missed predictions.

The question a lot of people might have now is why is crypto going up again. The sudden rise in value is also once again creating a lot of FOMO and attention. Surprisingly enough, if you take the entire market cap of cryptocurrencies, you would find that it is even larger than the most valuable company in the world, Apple.

Of course, the crypto market is always very volatile, but there might be a few catalysts that are the culprits behind this latest surge in price. One of the biggest catalysts is the rumor and speculations on a new crypto ETF, or exchange traded fund, appearing to be in the works soon.

Previously, there was little hope for a crypto ETF and too many fears and uncertainty on the severity of crypto regulations. There have been many proposals for Bitcoin ETF's sent to the U.S. Securities and Exchange Commission. Recently, there has been much more chatter on at least one of these proposals being approved and accepted by the SEC.

While many financial analysts have become extremely bullish on Bitcoin and other cryptocurrencies, it is quite important to remember the risks that crypto has. It is one of the riskiest and most volatile asset classes and has quite a long history of insanely quick run ups and crashes.

Should I Start Investing in Cryptocurrency?

This is a question that millions of people are asking themselves. Cryptocurrencies are in the middle of one of their biggest bull runs in history. Countless individuals have made millions almost overnight and these stories are creating more FOMO than ever.

Now more than ever, people are considering allocating some of their investments into cryptocurrencies. On one side, there is huge upside potential and the ability to get in early to a whole new technology. On the other side, crypto is one of the most volatile assets and is prone to massive swings in price. These factors make crypto such a divisive asset and is not necessarily a good investment for everyone. When deciding whether or not to include crypto into your own personal portfolio's it is most important to do your own research and identify what the future goals are for your investments.

In addition, many of the times crypto seems to crash is right after a huge surge in price. One recent example of this was the last rally of Bitcoin. Earlier this year in April, Coinbase had gone public and the entire crypto market rallied on this news. This was the same time Bitcoin had reached its earlier peak at $65,000. Unfortunately, Bitcoin proceeded to lose almost half its value in the next few months as it has done time and time again.

This article is for informational purposes; only not all information will be accurate. This should not be considered Financial or Legal Advice. Consult a financial professional before making any significant financial decisions.

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