‘Historic Milestone’ – Bitcoin Gears Up For $800 Billion From Buying Frenzy Like Ethereum, BNB, XRP, Solana, Cardano, Dogecoin Price Plateau

After a choppy start to the week, bitcoin and other major cryptocurrencies are flat.

Today’s Bitcoin price is up a few basis points. ether

ETH
eum price up 1.3%, BNB

BNB
3.7%, and Dogecoin 1%. Cardano

ADA
0.2% down from yesterday, terra 3.2%, XRP

XRP
1.2% Solana 1.6%.

Meanwhile, the cryptocurrency Bitcoin King has surpassed what many call a “historic milestone.” For the first time, investors will be able to invest a portion of their 401(k) money in crypto. It comes after Fidelity, the world’s third largest asset manager, announced that it will offer bitcoins in its retirement accounts.

Fidelity said Tuesday that the cryptocurrency will go online in 401(k) by mid-2022. It will be available to more than 23,000 employers who have their retirement accounts with Fidelity.

[Ed note: Investing in crypto is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

This makes Fidelity the first asset manager to offer crypto for retirement savings — the latest indication that crypto is heading into the mainstream. Fidelity is the largest 401(k) provider managing over $4 trillion in assets – a fifth of which will be available for cryptocurrency.

This means that Bitcoin could be in a buying frenzy of $800 billion this year.

zoom out

Not long ago, investors dismissed Bitcoin as the largest Ponzi scheme in history. Today, many fund managers are adopting cryptocurrency as an attractive alternative asset, such as Tesla

TSLA
Keep it in their budgets, and as we just learned, it’s about retirement accounts.

However, bitcoin still has to answer the type of investment. Is it a technical speculative investment? Or is it a digital safe haven against monetary consumption, as in Gold 2.0?

Traditionally, gold has been viewed as a monetary safe haven. Now, amidst the growing interest in digital assets, investors are wondering if bitcoin could become the successor to the 21st century.

As I wrote yesterday, all the evidence shows that this is not the case yet. Bitcoin

BTC
It still behaves very much like a speculative asset, which, in fact, amplifies moves in the tech-heavy Nasdaq. And their bond is rapidly recovering.

“Amid increased adoption, the correlation of crypto assets with traditional holdings such as stocks has increased significantly, limiting the benefits of perceived risk diversification and increasing the risk of contagion across financial markets,” the IMF wrote in its January report.

However, some analysts believe that bitcoin’s volatility will fade in the face of mainstream adoption. William Clemente, chief analyst at mining firm Blockware, believes that bitcoin will take on a life of its own and “link” to tech stocks as soon as next year.

“[I’m] I’m going to sign up and say that I think we see a bond between Bitcoin and stocks in the next 12 months…”

Will Bitcoin Become 2.0 Gold When Fidelity And Other Asset Managers Put Cryptocurrencies On Their 401(k) List? Time will tell.

I look ahead

Crypto will face a lot of headwinds this year, including the global regulatory environment and increasingly hawkish central banks. It is therefore difficult to know the impact of 401(k)s on the price of Bitcoin in this context.

But this Fidelity seismic movement illustrates how far cryptography has come over the past few years. It is likely to become a huge boost to the acceptance of cryptocurrencies as an alternative asset class for investors.

This indicates that although there may be a short-term decline, Bitcoin is becoming an increasingly worthy alternative asset for long-term diversification and investment.

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