Investors looking to get in on crypto's monster run may want to be tactical in their approaches.
Bitcoin prices have surged roughly 30% since Election Day on Nov. 5, touching a record of more than $93,000 on Wednesday, according to Coin Metrics. Prices dipped below the $88,000 level just before Thursday's stock market close, as the postelection rally showed signs of fading.
State Street Global Advisors' Matt Bartolini advises investors to consider how the political environment may influence prices moving forward.
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"You need to understand how the cryptocurrency market is progressing, particularly around new administration policies," the firm's head of SPDR Americas research told CNBC's "ETF Edge" on Monday.
Bartolini expects pro-crypto policies under the Trump administration to give an additional boost to the asset class.
"You have an administration that is going to be more crypto-friendly in terms of their regulation policies, and potentially lesser hurdles for cryptocurrencies and other digital assets to start to receive broad-based financial institution support," he added.
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'Entry price is everything'
While Astoria Portfolio Advisors CEO John Davi agrees Donald Trump's win is fueling near-term gains, he is skeptical on how much more room bitcoin has to run.
"Trump's cabinet will be pro-crypto. I would caution viewers that a lot of it's in the price," Davi said in the same interview. "A lot of it was front-running ETF flows."
The first batch of spot bitcoin ETFs began trading on Jan. 11, with the underlying cryptocurrency rallying over 90% since then.
"In this business, entry price is everything, and it's rallied quite a bit. So I would just be careful and tactical with your entry points," Davi added.
To manage downside risk, State Street's Bartolini recommends investors take an active approach with their digital currency investments.
"The ability to utilize actively-managed strategies to decipher the winners and losers around either regulatory-inspired headwinds or just ongoing usage and adoption of digital assets, I think that could be beneficiary," he said.
