3 Reasons to Consider Investing in Bitcoin, Despite Market Volatility

Amid meme-stock mania and a tech-startup-induced frenzy, Bitcoin hit new highs in late 2021, topping out at just over $68,000 per coin. 

Since then, the price plummeted almost 50% in volatile trading to start the new year. The spectacular rise and fall of Bitcoin have left many wondering if it's too late to invest. 

However, if you zoom out on the historical timeline, many think we are still in the early innings of a technology poised to change the world. An investment in Bitcoin in early 2017 would be up more than 3,500% at today's prices, even after the recent decline. 

Here are three things to consider if you are thinking about buying Bitcoin in 2022. 

Keep an Eye On Institutional Adoption

Currently, Bitcoin represents a tiny portion of all investment assets held by hedge funds, pensions, retirement accounts, and the like. If trends continue toward greater institutional adoption, that increase in demand could cause Bitcoin prices to rise. 

In an interview with Barron's, Cathie Wood of ARK Invest believes that if institutional investors added a 5% allocation to Bitcoin, the price could easily rise to the $400,000 to $500,000 range.