Should You Buy Bitcoin While It's Less Than $65,000?
Neil Patel, The Motley Fool
In the five years leading up to its all-time high, Bitcoin (CRYPTO: BTC) soared 1,760% in value. But since that peak was reached in March 2024, the price has come down about 13%.
A quick 13% move might be a big deal for many stocks, but it looks kind of slow in the twitchy cryptocurrency market. Bitcoin has essentially been trading sideways for the past six or so months, as investors anxiously wait for a break-out move to happen.
Does the current setup mean you should buy Bitcoin while it's trading below $65,000?
Recent developments
To say that 2024 has so far been an eventful year for Bitcoin would be putting it lightly. Things kicked off shortly after the calendar turned to January, when the Securities and Exchange Commission approved the trading of spot Bitcoin exchange-traded funds (ETFs) in a highly anticipated move. Industry observers viewed this as the event that legitimized Bitcoin, both on Wall Street and in Washington
The ETFs provide individual and institutional investors with a convenient and regulatory-compliant method of gaining exposure to Bitcoin's price. To date, over $17 billion has flowed to the various ETF products on the market
Then, on April 19, Bitcoin underwent a halving, which cut in half the amount of Bitcoin that miners receive as a reward for securing the network and process transactions. This event happens about every four years, and it shines a spotlight on Bitcoin's pre-determined inflation rate.
In the 12 to 18 months after a halving occurs, Bitcoin has historically experienced a major bull run. Based on past performance, we are in the early stages of what could be another sizable upward trajectory
As this is a year when a presidential election takes place, Bitcoin has also received attention from a political perspective. Investors are encouraged by the possibility of either presidential candidate adopting favorable policies that further support the advancement of Bitcoin and the cryptocurrency industry
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