Navigating the surge in the crypto market
The U.S. elections are heating up! With only a few days left until Election Day (November 5 local time), Trump and Harris are fiercely competing for votes. Meanwhile, Bitcoin has surpassed $71,000, leading to a general rise in crypto-related stocks. The U.S. elections could become a key catalyst for the crypto market.
The investment value of crypto lies in its gradual incorporation into institutional asset allocations, becoming part of diversified investment portfolios. As more institutional investors pay attention to Bitcoin and other crypto assets, the market's liquidity and stability are also improving. Additionally, crypto is seen as a potential tool for hedging against inflation and currency devaluation, further enhancing its appeal as a long-term investment. Overall, crypto is increasingly being recognized as an emerging digital asset, demonstrating considerable investment potential.
Recently, the crypto market has been primarily influenced by the following factors:
I. Upcoming Elections
Regardless of the election outcome, policy changes in the U.S. often create new market adaptation opportunities. On one hand, more lenient policies may encourage technological innovation and capital inflow into the crypto market; on the other hand, stricter regulations may prompt the industry to self-purify, enhancing transparency and security. Both scenarios could strengthen the long-term value of crypto and boost market confidence.
II. Appetite for Risk Assets
In the current global economic environment, investors' demand for risk assets is increasing, leading to a shift of funds from traditional markets to emerging assets, such as crypto. Regardless of who takes office, this trend is likely to continue, as cryptocurrencies offer different risk and return characteristics from traditional financial assets, helping to diversify investment portfolios.
III. Potential Rate Cut Expectations
Expectations of interest rate cuts could affect the value of fiat currencies, increasing the appeal of cryptocurrencies like Bitcoin, which are often seen as hedges against inflation and currency devaluation.
IV. Bitcoin Halving
In April of this year, a Bitcoin halving took place, and we are currently at a critical moment. Based on previous halving cycles, the price may begin to rise after a prolonged period of consolidation. Will history repeat itself? Let's wait and see!
V. Investor Behavior
According to the ETF head at BlackRock, 75% of Bitcoin buyers are newcomers to Wall Street who are fans of crypto. This indicates that the crypto market is attracting a new group of investors, and these new market entrants may influence market dynamics and price trends.
There are three ways to invest in crypto: directly investing in crypto, investing in stocks related to crypto, and investing in crypto-related ETFs.
Crypto
The first way is to directly invest in crypto.
For investors, directly investing in cryptocurrencies is a viable option. Investors can purchase established cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) through cryptocurrency exchanges, which typically have larger market capitalization and lower volatility. After the purchase, investors may choose to store their assets in a crypto wallet for management and trading purposes.
Crypto-related stocks
The second way is to invest in crypto-related stocks. These stocks can benefit from overall industry growth, rather than relying solely on individual cryptocurrencies. Even if specific cryptocurrencies perform poorly, related stocks may still rise due to industry trends, providing a leverage effect. This approach offers lower volatility and more controllable risk, allowing investors to profit from crypto growth while seeking a more stable investment path.
On moomoo, you can find them by navigating to Markets > US/Others > Investment Themes > Crypto.
Crypto-Related ETFs
Investing in crypto-related ETFs involves relatively lower risks than owning individual cryptocurrencies and is more convenient for investors to gain exposure to crypto.
Based on the assets they hold, the crypto ETFs available in the market can be divided into three categories: spot crypto ETFs, crypto futures ETFs, and crypto-related stock ETFs. What are the differences among them?
Moomoo also provides trading access to various crypto-related ETFs. Follow these steps to find them:
1. Open moomoo.
2. Type "Crypto" into the search bar, then tap "More".
3. View the list of different types of ETFs.
4. You can sort the list by price changes, trading volume, transaction amounts, market cap, and other conditions.
As the U.S. elections approach and Bitcoin prices break through, the cryptocurrency market is experiencing a new wave of investment enthusiasm.
Investors can participate in the market by directly purchasing cryptocurrencies, investing in related stocks, or choosing crypto-related ETFs, each with its unique advantages and risk considerations.
Regardless of the election outcome, cryptocurrencies, as an emerging asset class, are gradually becoming an important part of investment portfolios.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Aaron Invests (AI) : At most I could go for crypto related stocks and ETF as MY moomoo doesn't allow directly on crypto.
groguyogi : on a cost basis $iShares Bitcoin Trust (IBIT.US)$ etf is the better choice pls it mgmt fee is cheaper than gbtc
104247826 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
A Humble Mooer : Crypto is a scam.
All claims about crypto fail and then new claims are made to justify its rise.
You are exit liquidity for BTC whales who want to be trillionaires. This money is used to corrupt democratic processes.
Never imagine you are investing in crypto. it's only a tool for the ultra wealthy to strip you of legal protections.
under no circumstance whatsoever put money into the miners like $Riot Platforms (RIOT.US)$ $CleanSpark (CLSK.US)$ since they rely mostly on BTC and it's halved its mining rate now. Those businesses cannot survive after a halving without BTC doubling.
Coach Donnie : Directly invest in $Bitcoin (BTC.CC)$ $Ethereum (ETH.CC)$ etc pays the most
Crypto related stocks pay the second most $MicroStrategy (MSTR.US)$ $MARA Holdings (MARA.US)$ $Coinbase (COIN.US)$ etc
The last 2 items pay the least
DimondHandsDsolo94 : lets goooooo
Tanisha Smith Coach Donnie : Thanks Coach Donnie. You are always dropping those golden nuggets.
Coach Donnie Tanisha Smith : Some of those may surge but market manipulation by the WallStreet Aliens
is at an all time high
Coach Donnie Tanisha Smith : Gotta watch and pray
Tanisha Smith Coach Donnie : I am on here and in other places doing some research. Good advise Coach Donnie. WB's are smart people.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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