After a long, punishing decline from the 2021 highs, cryptocurrency investors have woken up to a pleasant surprise. In the last 15 months, Bitcoin (BTCUSD) prices have roughly tripled, while Ethereum (ETHUSD) has risen more than 100%. The Bitcoin bull run has finally resumed, with prices driven by tailwinds such as the launch of multiple spot Bitcoin exchange-traded funds (ETFs), as well as the upcoming BTC halving event.
While investing in cryptocurrency can be quite rewarding, investors should understand that it is also extremely risky. There are more than 20,000 cryptocurrencies in circulation, and just a handful of them may deliver outsized gains to investors in the upcoming decade. Moreover, you should also be ready for drawdowns of more than 80% at regular intervals.
