Be cautious when investing in crypto after the election, experts advise.

Be cautious when investing in crypto after the election, experts advise.
Be cautious when investing in crypto after the election, experts advise.

Those seeking to invest in crypto's surge should exercise caution in their strategies.

Since Election Day on Nov. 5, prices have increased by approximately 30%, reaching a record high of over $93,000 on Wednesday, according to Coin Metrics. However, prices dropped below the $88,000 mark just before the stock market closed on Thursday, indicating that the postelection rally was beginning to lose momentum.

Matt Bartolini of State Street Global Advisors advises investors to take into account the potential impact of the political climate on future price fluctuations.

The head of SPDR Americas research advised CNBC's "ETF Edge" on Monday to comprehend the advancement of the cryptocurrency market, specifically concerning new administration policies.

The Trump administration is expected to implement pro-crypto policies, which will further enhance the performance of the asset class, according to Bartolini.

The administration is becoming more crypto-friendly in its regulation policies, which may result in fewer obstacles for cryptocurrencies and digital assets to gain broad-based financial institution support.

'Entry price is everything'

John Davi, CEO of Astoria Portfolio Advisors, concurs with the notion that Donald Trump's victory is driving short-term profits, but he is uncertain about the extent of bitcoin's potential for further growth.

"Davi stated in the interview that Trump's cabinet will be pro-crypto, but he advised viewers to be cautious as a lot of it is in the price. He also mentioned that a lot of it was front-running ETF flows."

Since Jan. 11, the first batch of spot bitcoin ETFs have been trading, and the underlying cryptocurrency has experienced a 90% increase in value.

"Be cautious and strategic with your entry points in this business, as the entry price is crucial and has seen significant fluctuations," Davi advised.

Bartolini of State Street advises investors to adopt an active strategy when investing in digital currencies to minimize risks.

He believes that employing actively-managed strategies to identify successful and unsuccessful players in the face of regulatory-driven challenges or the continued use and adoption of digital assets could be advantageous.

by Anna Gleason

Markets