Is it worth investing in Bitcoin now?
Date: 2024-11-08 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
At the beginning of the year, Bitcoin reached a historical maximum of $73,750, but experts expected further growth, up to $100,000, which never happened. The influx of new investors into spot ETFs began to weaken in the summer, and the August crisis in the crypto market brought down the quotes.
The key event for Bitcoin this year was the April halving, which traditionally stimulates the growth of the asset value. Previous halvings in 2012, 2016, and 2020 resulted in record highs, as was the case in 2020, when the price of Bitcoin rose to $69,000 after the halving. But the April 2024 halving has not yet met investor expectations.
Comparison with other assets
Bitcoin has shown less impressive results compared to other assets. For example, meme cryptocurrencies such as Dogecoin and Shiba Inu have risen in price by more than 70% in a year. Some crypto-focused stocks have also outperformed Bitcoin: MicroStrategy shares have risen by 244%, Nvidia by 190%, significantly exceeding the return of the cryptocurrency itself. This suggests that risk-oriented investors have a wide range of investment options.
Big Events Ahead
The 2024 US presidential election could have a significant impact on Bitcoin if it leads to updated cryptocurrency regulation. For the first time, cryptocurrency is becoming an issue on the election campaign trail, and changes in regulatory approaches could have a positive impact on the market. Significant regulatory changes are expected by 2025, including a possible replacement of the SEC chairman with a candidate more favorable to crypto assets.
The Future of Institutional Investments
In the long term, Bitcoin is gradually gaining the status of an important element of the global financial system. With the beginning of a new institutional era, large investors are increasing their investments, and well-known Wall Street firms are developing new investment products. Even a minimal increase in institutional investments in cryptocurrency could attract significant capital to the market and change the overall demand picture.
Long-Term Outlook
When considering Bitcoin investments, it is important to consider the long-term outlook, despite the current fluctuations. Yes, 2024 did not bring the expected growth, and Bitcoin lost ground to other “risky” assets. However, many experts on Wall Street maintain positive forecasts. It is assumed that Bitcoin can reach the $1 million mark by 2030, and in the longer term - up to $13 million.
