Investors are increasingly drawn to the world of cryptocurrencies. Bitcoin's performance since the Nov 5 election has been remarkable, climbing to new heights around $100,000. Analysts like Mark Palmer from Benchmark Company are optimistic about the future of crypto.

Key Players in the Crypto Space

Palmer is particularly bullish on Michael Saylor-led Microstrategy (MSTR) and Mike Novogratz-led Galaxy Digital (GLXY.TO). He has been covering the crypto and fintech space for over a decade and has witnessed its ups and downs. He believes this time is different, with bad actors like FTX's Sam Bankman-Fried being removed from the system and the potential for growth under the incoming president Donald Trump.The new administration has mentioned appointing a crypto czar to oversee related issues. Although the exact role is unclear, it shows a shift in attitude towards crypto.

Recent Institutional Investments

Wisconsin's pension fund added bitcoin to its holdings in May by purchasing more than $160 million of shares in two new funds approved by regulators. This increased institutional adoption is a significant development. Palmer emphasizes that it is a key factor in the potential growth of bitcoin.

The Halving Phenomenon

Halving is a process that occurs every four years to rebalance the cryptocurrency. It cuts the rewards paid to bitcoin miners in half, making it a counter-inflationary measure. After halving in 2012, 2016, and 2020, there was a significant uplift in bitcoin's price in the following 14 to 18 months. Bitcoin most recently halved in April this year.

Risks and Considerations

While there are bright possibilities for crypto, Palmer advises investors to be cautious. He reminds them that it behaves as a risk asset and remains volatile. Achieving the $225,000 price target depends on institutional involvement and how this positive backdrop translates into upside.Three times a week, Yahoo Finance Executive Editor Brian Sozzi conducts insightful conversations on Opening Bid. You can find more episodes on their video hub or preferred streaming service.Grace Williams is a writer for Yahoo Finance. Click here for the latest crypto news and updates related to ethereum, bitcoin prices, crypto ETFs, and market implications. Read the latest financial and business news from Yahoo Finance.