Bitcoin breached the $21,400 level for the first time in history Wednesday, as crypto enthusiasts pointed to increased demand from institutional investors for the blazing digital currency. The digital currency has been on a tear this year and is now up more than 180%, driven in part by new institutional support and low-interest rates stemming from Covid-19. Bitcoin believers see it surging even further. Galaxy Digital CEO Michael Novogratz, a longtime cryptocurrency bull, sees bitcoin skyrocketing to as much as $55,000 or $60,000 by the end of next year in a continuation of its epic rally. Big-name investors like Paul Tudor Jones and Stanley Druckenmiller have invested in the cryptocurrency. Major Wall Street firms like S&P Global and Cboe Global Markets have been making a big push into crypto market data services. Many financial advisors get questions about bitcoin from investors that don’t know a lot about the cryptocurrency and have just heard about it in the news. Before putting money into bitcoin, it’s important to do your research and understand as much as you can about the asset class. Once you’ve done your research and know you want to invest, financial advisors say that bitcoin shouldn’t be a major part of your portfolio. Instead, it should be a less than 5% position that’s thought of more as play money to be allocated toward fun investing and not tied to a goal such as retirement.


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