The cryptocurrency Bitcoin (BTC) continues to delight market participants. Yesterday the asset reached a new level – $37,946; growth over the year exceeds 116%
Last year, the cryptocurrency lost 77% of its value compared to its all-time high, falling to $15,000. However, the token managed to compensate for this loss, rising in price by more than 50%.
BTC's recovery came as a surprise to many analysts and crypto critics. Back in 2022, many market participants declared the end of the era of digital currencies following central bank rate hikes, liquidity tightening, and the collapse of FTX.
Even though Bitcoin has already come a long way from its recent lows, it is certainly not too late to invest. Here are three reasons why now is the best time to buy Bitcoin.
The bear market is over
Multiple indicators indicate that the 2022 bear market is over and the crypto winter is being replaced by a crypto spring.
First, Bitcoin appears to be following its normal roughly four-year market cycle. Typically, in the run-up to the halving, the coin goes through a year-long pullback from all-time highs, only to then rise higher and continue to reach new records.
Moreover, according to the Glassnode portal, throughout the year, on-chain indicators appeared indicating that Bitcoin was in a bullish trend. This dashboard analyzes several important metrics: whether BTC is trading above key pricing models, whether network usage is increasing, and whether profits are flowing into the market. In addition, the interface shows whether the Bitcoin balance in dollar terms is in favor of which investors - long-term or short-term.
It's also worth noting that Bitcoin never recovered more than 100% during the height of its bear period. The only exception was March 2020, when global markets experienced a brief decline due to panic associated with the spread of the Covid-19 virus. This means that a rise in the price of BTC always signals the start of a new bullish trend.
Bitcoin ETF could be approved very soon
It's not just historical charts and on-chain analysis that point to Bitcoin's good prospects. Overall acceptance of this cryptocurrency is growing.
Many industry analysts expect that spot Bitcoin exchange-traded funds (ETFs) will soon receive the green light from the US regulator. This will open the door to a significant influx of capital into the Bitcoin market from the traditional financial world.
