The Compelling Reason To Invest In Crypto Now
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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If you’ve been thinking about investing in cryptocurrency but haven’t taken the plunge yet, now might be the time to make a move. President Donald Trump recently announced the creation of a U.S. Crypto Strategic Reserve, a major step in recognizing bitcoin (BTC) and other digital assets as part of the country’s financial future.
This news comes at a time when bitcoin saw a significant drop from $88,000 to around $77,000 before rebounding about $80,000, sparking discussion over whether the crypto market is cooling off. But if history tells us anything, downturns can be opportunities rather than a reason to panic.
Experts say the government’s involvement in bitcoin could be a game-changer, paving the way for wider adoption and more stability in the crypto market. What does this mean for the average investor?
Big Money Is Moving Into Crypto
One of the biggest reasons to consider crypto right now is the sheer amount of money pouring into the space. Major financial players are embracing digital assets, according to Chris Sullivan, portfolio manager and co-founder of Hyperion Decimus, a crypto hedge fund.
“The passing of the BTC strategic reserve at the federal and some state levels, along with the purchase of BTC for Bahrain’s sovereign wealth fund, highlights the pace of institutional adoption in real time,” Sullivan said.
In addition, banks in the U.S. have now been cleared to hold bitcoin for customers, which could make crypto investing easier for the average person, though the question remains if it is less risky.
A Clearer Regulatory Pathway
For years, one of the biggest concerns around crypto was uncertainty about regulations. Would governments crack down on digital assets? Could investors trust the industry’s long-term future? Today, that uncertainty appears to be fading, Sullivan suggested.
“Whereas crypto regulation was somewhat murky in previous years, many governments today have established clearer policies, helping minimize unpredictability for investors,” he said.
With more than 28 states proposing bitcoin reserves and the Securities and Exchange Commission (SEC) dropping lawsuits against major crypto firms, the industry may finally be getting some regulatory clarity.
A Hedge Against Inflation and Uncertainty
Crypto has long been called “digital gold” by proponents who see it as a hedge against inflation and economic instability. Some investors are turning to bitcoin as a way to protect their wealth from market fluctuations and currency devaluation.
“With continuing concerns over inflation, monetary policy divergence and global economic instability, crypto continues to offer a hedge against fiat devaluation,” Sullivan said.
Bitcoin’s Price Drop Could Be a Buying Opportunity
On the other hand, crypto is known for its volatility, and bitcoin’s brief drop earlier this month, spooked some investors. However, Jag Sidhu, core developer at Syscoin, reassured that this kind of movement is normal and can be a great opportunity to buy in at a lower price.
“Institutional investors and market whales frequently view such dips as ideal buying opportunities,” Sidhu said. “Sophisticated investors and institutions will continue accumulating bitcoin, demonstrating confidence in its long-term potential.”
Tokenization and Blockchain Are Changing the Game
Bitcoin isn’t the only part of crypto that’s making waves. The “tokenization” of real-world assets — like stocks, real estate and commodities — is revolutionizing finance.
“Coinbase is revisiting a plan to tokenize its stock, and Nasdaq is considering launching 24-hour trading, mirroring crypto markets. The writing’s pretty much on the wall at this point,” said Davis Richardson, managing partner at R3 Consulting.
By bringing traditional assets onto blockchain networks, crypto might be creating new ways for people to invest, trade and build wealth.
Crypto Payments Are Taking Off
Another reason crypto may be here to stay is that real world adoption is on an upward swing. More businesses and individuals are using bitcoin and stablecoins for payments, and new technologies are making transactions cheaper and faster.
“Current transaction capacity on the Lightning Network now exceeds 1 million transactions per second, dwarfing SWIFT and credit cards,” Sullivan noted.
As more businesses accept crypto for everyday purchases, it could become a mainstream financial tool.
The Bottom Line
With the U.S. officially holding bitcoin in a reserve, big financial institutions getting on board and regulations becoming clearer, crypto is looking more stable and legitimate than ever.
Of course, investing in digital assets still carries risk, and investors should limit the amount of any cryptocurrency in their investment portfolios, but now could be a smart time to buy.
As Max Kalmykov, CEO of Bitsgap, put it, “While others are scared or doubtful, this becomes the best time to start picking up all these dips and buying crypto for the long term.”
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