Bitcoin’s Moment: Is Now the Prime Time to Invest?
Written by
Yaël Bizouati-Kennedy
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Bitcoin is having a moment. Following a couple of terrible years for the crypto, the asset is thriving once again thanks to a confluence of factors. And now, experts say it might be the prime time to invest.
First, the approval by the Securities and Exchange Commission (SEC) of spot Bitcoin exchange-traded funds (ETFs) on Jan. 10, has attracted enormous interest and asset flows. And of course, Bitcoin also breached its previous all-time-high record in March.
Another notable factor at play is the upcoming halving later this month. Indeed, experts said that historically, halvings — which happen every four years — have led to price appreciation, adding that this year should not be an exception.
So it’s no wonder that everyone from Mark Cuban, who recently said he would “buy Bitcoin over gold all day every day,” to Robert Kiyosaki who said he recently bought more Bitcoin, are being vocal as to the upward trajectory of the asset.
With more and more institutional investors jumping on the Bitcoin bandwagon, the bullish case for buying more of it remains strong, said Vijay Marolia, co-founder, The Cash Square, adding that the asset’s inherent scarcity only adds to this bullish scenario.
“Add to that the fact that inflation has not gone away and the dollar has lost approximately 25% of its value in just the last few years,” he said. “Finally, the combination of MOMO [momentum trading] and FOMO [fear of missing out] will only add to the demand.”
While the asset is experiencing volatility ahead of the halving, it hovered around $66,000 on April 3 and is up 132% in the past year, according to CoinGecko.
“It has been a spectacular quarter for Bitcoin, peppered with all-time highs, record after record in ETF inflows, and characterized by a markedly nonchalant attitude to macro happenings,” said Lucas Kiely, Chief Investment Officer of digital wealth platform Yield App. “Fueled by institutional endorsement, BTC powered through every inflation report, ongoing regulatory hum hawing, and any and all corrections these past three months served up.”
According to Kiely, the second quarter is likely to be just as – if not more – exhilarating than the first one.
He added that as BTC prices surge and the network speeds up on this renewed bullish sentiment, they may also draw the halving closer, to an earlier-than-expected date in mid-April.
In turn, this combination of solid price hikes and a surprise halving will have emotions running high in the next couple of weeks and, potentially culminating in a new all-time-high above $75,000 before the halving, he said.
Kiely noted, however, that whether it can maintain this new all-time high of $75,000 this month is less likely, as the halving typically brings volatility in the short term, and corrections can be as sharp as 30%.
“But as it adjusts to its new, institutionally legitimized status and the comparatively tame price action this position affords, BTC may well settle into $75,000 as a new normal over the next 12 to 18 months,” he added.
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