Analyst Warns of Risks Amid Intensified Zeal for Cryptocurrencies

By Dipo Olowookere

A senior market analyst at FXTM, Mr Lukman Otunuga, has warned that despite the renewed interest in cryptocurrencies, the risks associated with the ecosystem remain.

Since Mr Donald Trump won the presidential election in the United States for a second term on November 5, 2024, the digital currency market has witnessed a boom, with Bitcoin projected to hit over $100,000 before the end of this year.

As 2024 comes to a close, many investors are taking a fresh look at their portfolios and considering how to strategically enter or adjust their exposure to cryptocurrency.

“The zeal for cryptocurrencies has certainly intensified since Donald Trump won the 2024 US presidential elections.

“Still, the risk remains whether the president-elect’s campaign promises will translate into actual crypto-friendly policies that foster greater innovation and demand for this asset class.

“As long as Trump 2.0 makes good on positioning the US as the crypto capital of the world, that should create a conducive environment for cryptos to extend their recent bull run,” Mr Otunuga stated.

Bitcoin Exposure Index

With the rise of Bitcoin ETFs, retail investors are still seeking alternative ways to gain crypto exposure. While Bitcoin strategy ETFs track Bitcoin indirectly—some through futures and others via mining stocks—these approaches can lead to significant deviations in returns.

FXTM has conducted an in-depth analysis of the leading companies holding Bitcoin and compared options across crypto exchanges, wallets, and ETFs.

Its index evaluates availability, risk/reward, hidden costs, and more, and gives an overview of the best way of buying/trading for age groups.