Bitcoin

Should you buy Bitcoin right away?

Published

7 months ago

21 June, 2024

Bitcoin’s recent pullback from its all-time high could represent a unique buying opportunity.

Bitcoin (Bitcoin -1.27%) may have risen more than 50% for the year, but the last three months have been disappointing, to say the least. Bitcoin is now trading more than 10% below its all-time high of $73,797, which was reached in mid-March. And on June 18, the price of Bitcoin fell below $65,000 for the first time in over a month.

But do not worry. We’ve seen this story before with Bitcoin, and experienced crypto investors know that short-term dips in Bitcoin’s price can often present unique long-term buying opportunities. So here are two good reasons to stop worrying and buy the dip.

The new Bitcoin ETFs in sight

At some point this starts to sound like a broken record, but the reality is this: huge flows of investors into the new spot Bitcoin ETFs will likely increase the price of Bitcoin. While there was some cooling in investor flows into ETFs in May, the pace of capital committed to cryptocurrency appears to be picking up again. At one point in early June, new Bitcoin ETFs had a 19-day streak of net investor inflows. To date, more than $30 billion has been funneled into the new ETFs.

Image source: Getty Images.

This leads to the inevitable question: why isn’t the price of Bitcoin rising if we’re seeing all these ETF inflows? One answer could be that the main buyers of the new ETFs are not retail investors (people like you and me) or large institutional investors. Instead, the main buyers appear to be Wall Street hedge funds. In fact, 80 of the biggest buyers of ETFs so far are hedge funds. And this is simply not the kind of patient, buy and hold money that will cause the price of Bitcoin to rise in the long term.

The good news here is that retail investors appear to be increasing their Bitcoin allocations. And over time, we can expect more institutional investors to start buying cryptocurrencies as well. Black stone (BLACK 0.67%), which has $10 trillion in assets under management, says there are three distinct types of institutional investors who could join the Bitcoin party soon: pension funds, endowments, and sovereign wealth funds. Once this pool of money enters the crypto market, it will likely boost Bitcoin.

The halving

And don’t give up the half fortunately. While Bitcoin’s performance since the halving has been dismal, the reality is that any halving event does not magically lead to stratospheric increases in the price of Bitcoin. Halving cuts the rate of creation of new Bitcoins in half, and this is what sets off a chain reaction of events that can lead to higher Bitcoin prices. In many ways, it is similar to the way monetary policy It works, in that rate cuts or other measures can take time to impact the broader economy.

In short, the financial impacts could take some time to develop and it could be several months before we see the price of Bitcoin really soar. Billionaire venture capitalist Chamath Palihapitiya recently analyzed Bitcoin’s performance during the previous halving cycle (which began in May 2020) and found that Bitcoin’s performance didn’t really start to take off until several months after the halving cycle began. At that point, Bitcoin’s chart turned parabolic and the cryptocurrency reached a new all-time high of $69,000 for that cycle.

Will Bitcoin hit $100,000 this year?

In this context, there are many analysts and investors who still think that Bitcoin could reach US$100,000 or more by the end of this year. According to Standard Chartered, the rise of pro-Bitcoin rhetoric in the election campaign is another factor that could take Bitcoin to $100,000. In an ultra-bullish scenario, Bitcoin could reach $150,000.

If $150,000 is the upper level for Bitcoin this year, the lower level could be $42,000. In March, JPMorgan Chase predicted that Bitcoin would lose 33% of its value after the halving. This bearish scenario focused on the chaotic impact the halving could have on the Bitcoin mining industry.

Overall, I’m not worried about $65,000 Bitcoin. The only time I will be worried is if Bitcoin falls below the $42,000 price level. Fortunately, this seems unlikely given Bitcoin ETF investor flows and growing mainstream adoption. So, if you are risk-averse and optimistic about Bitcoin’s long-term prospects, now could be the perfect time to buy the dip.

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Dominic Basulto has positions in Bitcoin. The Motley Fool has positions and recommends Bitcoin and JPMorgan Chase. The motley fool has a disclosure policy.

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Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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