Bitcoin

Should you buy Bitcoin while it costs less than $70,000?

Published

7 months ago

19 June, 2024

Bitcoin (CRYPTO:BTC) has come a long way since the height of crypto winter 2022. Over the past two years, it has risen over 300% and recently reached a new all-time high.

However, since it peaked in April, things have cooled off and – dare I say it – become lackluster. Volatility has returned and any momentum Bitcoin tries to muster appears to be short-lived. However, although the current situation may seem a little bleak at the moment, I see Bitcoin below $70,000 as an opportunity that will not last long.

Here’s why.

A person looks thoughtfully at a laptop.

Image source: Getty Images.

Why Now Might Be a Good Time to Buy

In the short term, there are two events that are likely to be significant factors that will eventually drive the price of Bitcoin well beyond $70,000.

The first is Bitcoin reduce by half. Occurring approximately every four years, halving reduces the rate of production of new Bitcoins, thus increasing scarcity. In other words, halvings change the dynamics around Bitcoin supply and demand.

By reducing the supply rate at which Bitcoins are produced, halving essentially means that even if demand remains constant, the price has to increase to compensate for the reduction in supply. After all, mining operators still need to pay their electricity bills. On average, in the year that a halving occurs, the price of Bitcoin increases by around 125%. If a similar situation happens this time, Bitcoin could reach almost $100,000 by the end of the year.

The other near-term development that should give Bitcoin a boost is the approval of spot Bitcoin exchange-traded funds (ETFs). With these ETFs, investors can gain exposure to Bitcoin through exchanges and no longer need to navigate what can be complex cryptocurrency exchanges, effectively democratizing access to Bitcoin for retail and institutional investors.

Demand for these Bitcoin ETFs has been extraordinary, with initial purchases occurring at 10 times the daily rate of Bitcoin production. Although the frenzy has cooled somewhat, these ETFs remain among the most successful launches in history, racking up $15 billion in capital inflows in just six months. To provide some context, Bitcoin ETFs achieved the same inflow volume in seven weeks that gold ETFs took three years to achieve.

Long-term perspectives

While there are short-term developments that are encouraging and should make the drop below $70,000 only temporary, it is in the longer term that Bitcoin’s appeal becomes more apparent. First and foremost is its robust monetary policy that prioritizes not only value preservation but also appreciation, thanks to halvings and its finite supply of 21 million coins. As fiat currencies around the world continue to inflate and governments take on greater debt, Bitcoin will solidify itself as the ultimate safe-haven asset.

The story continues

Furthermore, the decentralized nature of Bitcoin ensures that no single entity controls the network, making it censorship-resistant. This quality will prove increasingly valuable in a world where financial systems are subject to regulatory pressures and geopolitical tensions.

Last but not least is the general trend of younger generations reaching investment age. These younger generations are known to be more comfortable with digital assets, and as the leading cryptocurrency, Bitcoin should naturally benefit.

Price appreciation potential

In the long term, it is easy to envision a scenario in which Bitcoin does not maintain its historical pace of price appreciation. This change is likely many years away, however. As sensational as it may seem, a $1 million price for Bitcoin is within the realm of possibility. Various models and theories such as the Law of Power and Metcalfe’s Law support this potential.

If Bitcoin reaches $1 million or even half that, then a purchase below $70,000 will become even more attractive. But rest assured, while only time will tell how high Bitcoin rises, it is likely that investors will eventually look at today’s prices similarly to how they view the days when Bitcoin traded for less than $10,000 – with a feeling of missed opportunity.

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Should you buy Bitcoin while it costs less than $70,000? was originally published by The Motley Fool

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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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