Cryptocurrency prices have surged over the past couple of months, and some analysts think this is just the beginning. So, what’s causing the surge and is crypto a good investment for you?

Over the past 12 months, the price of cryptocurrencies has surged. Bitcoin is up 72% as of July 28, while Ethereum, which is another popular crypto, is up 16%.

Bitcoin passed the 100k mark at the top of the year and even briefly passed 120k in July. Which is especially crazy to think about when you consider that it fell to just $12,000 in 2020.

So what’s causing the spike?

Founder of Wealth Watch JA, Julian Morrison, was on Taking Stock recently.  He explained that it likely has to do with the Genius Act, which was recently passed in the United States.

Essentially, the law establishes clear rules for how digital currencies like Bitcoin should be treated, making it easier and safer for large financial companies to get involved. 

That means that big money firms like Fidelity and BlackRock can step into the crypto space because it is now guided and regulated by law. And with those players now in the game, more money is flowing into coins like Bitcoin and Ethereum. And when big players start buying, prices usually go up.

BUT Crypto is still very risky.

So the gains are big because the losses are big. As Julian said, just because it’s going up, doesn’t mean it’s safer.

One thing’s for certain, though, with clearer rules in place and major institutions getting involved, the crypto market is getting more attention than ever. 

And that’s the bottom line.