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Is now the ideal time to invest?
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Bitcoin is having a moment. After some terrible years for crypto, the asset is thriving again thanks to a confluence of factors. And now experts say it could be the prime time to invest.
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First, the Securities and Exchange Commission’s (SEC) approval of Bitcoin spot exchange-traded funds (ETFs) on January 10 sparked huge interest and asset flows. And of course, Bitcoin also broke its previous all-time high in March.
Another notable factor at play is the halving coming later this month. Indeed, experts said that historically, halvings – which occur every four years – have led to price appreciation, adding that this year should not be an exception.
It is therefore not surprising that everyone, since Mark Cuban, who recently said he “would buy Bitcoin rather than gold all day, every day”, according to Robert Kiyosaki who he said recently bought more Bitcoin, express themselves on the upward trajectory of the asset.
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As more institutional investors jump on the Bitcoin bandwagon, the bullish case for buying more remains strong, said Vijay Marolia, co-founder, Cash Squareadding that the inherent scarcity of the asset only adds to this bullish scenario.
“Added to this is the fact that inflation has not disappeared and the dollar has lost around 25% of its value in the last few years alone,” he added. “Finally, the combination of MOMO [momentum trading] and FOMO [fear of missing out] will only increase demand.
Although the asset was experiencing volatility before the halving, it was hovering around $66,000 on April 3 and is up 132% over the past year, according to CoinGecko.
“It was a spectacular quarter for Bitcoin, peppered with all-time highs, record after record in ETF inflows and characterized by a distinctly lackadaisical attitude to macroeconomic events,” said Lucas Kiely, chief investment officer of the wealth platform. digital. Yieldd Application. “Fueled by institutional approval, BTC has fueled every inflation report, ongoing regulatory buzz, and every correction over the past three months.”
According to Kiely, the second quarter is shaping up to be just as – if not more – exciting than the first.
He added that as BTC prices rise and the network gains momentum due to this renewed bullish sentiment, they could also bring the halving closer, to an earlier date than expected, in mid-April .
The story continues
In turn, this combination of strong price gains and a surprise halving will stir up strong emotions over the coming weeks and could culminate with a new all-time high above $75,000 before the halving, a he declared.
Kiely noted, however, that it is less likely to maintain that new all-time high of $75,000 this month, as halvings typically bring short-term volatility and corrections can reach 30%.
“But as it adapts to its new institutionally legitimized status and the relatively moderate price action that this position allows, BTC may well settle at $75,000 as the new norm over the next 12 to 18 next few months,” he added.
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This article was originally published on GOBankingRates.com: Bitcoin time: is it the ideal time to invest?