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A look at the major indexes shows that the stock market is at record levels. This bullish sentiment has also permeated the more speculative digital asset space. The value of the cryptocurrency market is currently $2.5 trillion, near an all-time high.
Call it a bubble if you like. However, the recent incredible performance of digital tokens, Bitcoin (Cryptocurrency: BTC) In particular, it cannot be ignored. The world’s most valuable cryptocurrency has soared 308% since the start of 2023 (as of March 21). And while the stock is currently 9% below its all-time high of $73,750 on March 14, it has soared 61% this year alone.
As the days go by, fewer and fewer investors are unaware of Bitcoin. But there are still many investors who don’t own it.
Should you buy this best cryptocurrency for between $67,000? Let’s explore Bitcoin and its outlook even near its highs.
perfect setup
Bitcoin’s recent price movement is a microcosm of long-term volatility. Significant price fluctuations are normal, at least when compared to stocks. However, over the long term, this digital asset has steadily appreciated.
This year is shaping up to be one of the most favorable environments for Bitcoin’s value to continue rising. He has three key factors that investors should know. A valid argument can be made that anticipating these events is already helping propel Bitcoin forward.
The first development was a much-anticipated approval. spot exchange traded investment trust. These investment vehicles have not only legitimized Bitcoin as a financial asset in the eyes of regulators and asset managers, but now offer a seamless way for individuals and institutions to gain exposure.
after that, Future half-life, an event that reduces the supply of new Bitcoins entering the market. Historically, digital assets have continued to enjoy impressive momentum in the 12-18 months following a halving as demand has outstripped production of new coins. It might happen again.
And finally, the topic of discussion is Federal Reserve cuts interest rates It all depends on the direction of inflation. However, lower interest rates and central bank easing do not have a direct impact on asset prices. However, they encourage savers and investors to seek riskier holdings to achieve adequate returns. And this could lead to more funds flowing into Bitcoin.
Bitcoin value proposition
It’s important to ask why Bitcoin is valuable to people in the first place. I think it’s very easy.
For the first time in digital form, there is an asset with a fixed supply limit that anyone in the world (with investment capital and internet access) can buy and hold. People in democracies like the United States are accustomed to the well-developed payments and financial infrastructure provided by traditional banks. But countries like Venezuela, which operate weak payment systems and financial infrastructure under totalitarian regimes, may find value in assets that are open, decentralized, and censorship-resistant.
And like any other currency, Bitcoin is given value by its users. As long as there is demand for Bitcoin, Bitcoin will remain a store of value.
Nevertheless, critics may say that Bitcoin has no value, as they point out that it is nothing more than fake internet money. This argument may make sense on the surface. Yet, despite adverse geopolitical, macroeconomic, and industry-specific events over the past 15 years or so, Bitcoin has continued to rebound from its lows and continue to make new highs. There is a reason. It has proven to be resilient and people all over the world have shown high interest in owning it.
The best time to buy Bitcoin was in 2009. The next best time is now, with a price tag of $67,000. There is still a lot of room for upside over the next decade and beyond.
Should you invest $1,000 in Bitcoin right now?
Before buying Bitcoin stocks, consider the following:
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*Stock Advisor returns as of March 21, 2024
Neil Patel and his clients have no position in any stocks mentioned. The Motley Fool has a position in and recommends Bitcoin. The Motley Fool has a disclosure policy.
Should you buy Bitcoin with $67,000? Originally published by The Motley Fool
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