Not owning Bitcoin will be a liability in the future: NYDIG report

With the level of regulatory clarity expected in the United States in the coming months, market analysts insist that investors who do not own bitcoin (BTC) could become a liability in the future.

According to a research report from Bitcoin technology and financial services firm New York Digital Investment Group (NYDIG), market participants have no excuses not to buy BTC now. NYDIG head of global research Greg Cipolaro said cryptocurrency is not only available through easily accessible and well-regulated products like exchange-traded funds (ETFs), but is now becoming a “political imperative”.

Investors to get zero BTC allocations

Cipolaro explained that US investors may have found it easy to dismiss or ignore BTC for various reasons over the past few years, but continuing to do so would be at their financial risk. The leading cryptocurrency has outperformed all asset classes and is up more than 90% year to date.

“Not owning the asset will become a liability in the future,” Cipolaro added.

Currently, most investors have no wallet allocation to BTC. Cipolaro said this needs to change as investors need to go down to zero and make room for BTC in their wallets. Given the level of positivity in the market, the leading digital currency is bound to accumulate short-term gains. At the time of writing, BTC was valued at $82,200, in line with its 4-year price cycle.

“Bitcoin had been pulling ahead of the recovery from previous cycles prior to the range trading we’ve been in since March. Now with the price rally, it looks like the repeating cycles may continue,” Cipolaro explained.

Next Steps for the US Crypto Industry

After President Donald Trump’s victory in the just-concluded US election, Republicans will take control of the White House and likely make up most of the Senate and other legislative arms. The crypto industry sees this consolidation of power by the Republican party as a favorable development due to the late request for clear regulations.

Major US agencies and departments could witness significant changes as soon as pro-crypto Republicans emerge as new heads and CEOs. Cipolaro revealed that the head of the Senate Banking Committee, Sherrod Brown, is already out, and the head of the Securities and Exchange Commission, Gary Gensler, is “almost certainly going to be out.”

Additionally, the individuals heading the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Treasury will be replaced by Republicans, ushering in a new era where crypto is accepted into the mainstream financial system.

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