Despite Bitcoin’s price swings in the last few months, many investors remain undeterred and are looking for new cryptocurrencies in which to invest.
Bitcoin has clawed back about 16% of value over the past two weeks to sit above $41,000. Some analysts are calling this the end of the “crypto winter.”
While the biggest crypto in the world has been struggling to hold its value, several smaller coins – known as altcoins – have rallied in recent times. Some investors are looking to altcoins to diversify their holdings as investing in Bitcoin alone is tantamount to investing in one asset class.
Crypto investment company CoinShares has reported an increase in multi-asset funds, featuring a combination of coins, with inflows totaling $32 million in the week ending January 28, a high not seen in a year.
Analysts say growing interest in the metaverse is partly behind this surge. Challenger blockchain platforms Solana and Polkadot have risen 28% and 23%, respectively, over the past two weeks, showing that appetite for crypto investment remains strong.
What does this mean for me?
Despite Bitcoin nearly halving in value between early December 2021 and January 2022, interest in crypto will not go away.
Some commentators believe the increased investment in altcoins demonstrates an overall confidence in cryptocurrencies as an investment form, even if traders are learning to hedge against the volatility of a single coin.
For you as a crypto investor, this is welcome news and justifies your efforts to sit tight and ride out the short-term volatility.
Contact Us and your Message Will Be Answered As Soon As Possible.