[ad_1]
Based on the back and forth experienced in the Bitcoin (BTC) market, a long-term approach is required when investing in the leading cryptocurrency, according to Jordan Belfort, a former Wall Street stockbroker.
Speaking on Yahoo Finance’s The Crypto Mile, Belfort opined that Bitcoin investment required a strategy beyond one or two years. He pointed out:
“If you take a three or maybe five-year horizon, I would be shocked if you didn’t make money because the underlying fundamentals of Bitcoin are really strong.”
Belfort added:
“With reasonable luck, I think if you take a 24-month horizon you’ll almost certainly make money.”
Belfort, who has transitioned to a sales coach, author, and public speaker, noted that it was just a matter of time before BTC emerged as a store of value based on its fixed supply of 21 million coins and heightened inflation. He noted:
“It has a limited supply, and as inflation keeps rising there will come a time when bitcoin will start to trade more like a store of value and less like a growth stock.”
Bitcoin has been trading on shaky grounds because tightened macroeconomic factors have been unfavourable. For instance, the leading cryptocurrency has been struggling to hold the psychological price of $20K, which is way below the all-time high (ATH) of $69K set in November.
BTC was up by 0.56% in the last 24 hours to hit $20,204 during intraday trading, according to CoinMarketCap.
Since Bitcoin is still developing, Belfort believes this contributes to its correlation with tech stocks. He acknowledged:
“It doesn’t surprise me one bit that it is doing that and it would be more of a surprise if bitcoin was already trading as an inflation hedge because it is still very nascent.”
With macroeconomic factors and investor sentiments affecting both cryptocurrencies and stocks, a recent analysis showed that the most likely answer was that institutional investors were behind the scenes, Blockchain.News reported.
Image source: Shutterstock
[ad_2]
blockchain.news
