Time to expand your crypto horizons: beyond Bitcoin for better returns

By Newsdesk

January 15 2024
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In an intriguing twist for cryptocurrency investors, it's suggested that the spotlight may be shifting from the long-time favourite, Bitcoin, to a broader spectrum of digital assets.

Time to expand your crypto horizons: beyond Bitcoin for better returns

Nickel Digital Asset Management, a foremost hedge fund manager in the digital assets space, has unveiled analysis pointing to potential outperformance opportunities outside of Bitcoin's glow.

While Bitcoin has indisputably seen a remarkable 155% increase in value over the past year, captivating both institutional and retail investors alike, Nickel Digital asserts that now is the moment to diversify. With Bitcoin typically spearheading the initial phase of market recovery, the pattern thereafter alters as the market gains momentum.

Nickel Digital's review of historical trends from the market's low in December 2018 illustrates this narrative. Although Bitcoin initially led the charge, Ethereum soon caught up and then surpassed Bitcoin, delivering a 421% return by September 2020 against Bitcoin's 255%. As the cycle matured, Ethereum rose to a staggering 57-fold return, compared to Bitcoin's 21-fold increase. Another shining example is Solana, a more recent entity, which manifested over a 270-fold growth, showcasing the vast potential residing in diversified crypto investments.

This sentiment is echoed by a substantial section of the investment community, with global research indicating that 39% of institutional investors managing an impressive AU$3.5 trillion view the wider digital asset market as "very attractive," while nearly half regard it as "quite attractive".

Bitcoin's current price surge, attributed to factors such as the anticipated U.S. approval of a spot Bitcoin ETF and an upcoming Bitcoin halving, is also underpinned by favourable macroeconomic conditions. Anticipated interest rate cuts are bolstering Bitcoin's appeal to investors traditionally interested in speculative technology or even gold.

Adding a sage note to the discourse, Anatoly Crachilov, CEO of Nickel Digital, shared his perspective:

"While Bitcoin has been leading the initial recovery of the crypto market, a plethora of digital assets, first of all those utilising smart contract capabilities, are catering to a diverse range of use cases, from decentralised finance to tokenization of real-world assets and on-chain gaming."

Crachilov further inspires action with a well-timed proverb: “As the old proverb goes, the best time to plant a tree was years ago, the second best is now. We recommend dedicating time to research high-potential protocols beyond Bitcoin, with the aim of optimizing exposure to digital assets.”

As the digital asset landscape evolves, both seasoned and budding investors are poised at the edge of a potentially lucrative expansion beyond the Bitcoin domain.

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