Should You Buy Bitcoin While It’s Under $70,000? Key Factors to Consider

Bitcoin (BTC), the world’s leading cryptocurrency, has once again taken investors on a wild ride in 2024. After a 60% surge in the first quarter, the digital asset has since moved within a tight range. As of today, Bitcoin is trading 11% below its all-time high reached in March. This volatility has many traders asking: Is now the time to buy Bitcoin while it’s still trading for under $70,000?

Short-Term Catalysts Driving Bitcoin’s Price

This year has been packed with significant events that have influenced Bitcoin’s price. One of the most important was the approval of the highly anticipated spot Bitcoin ETFs in January. These exchange-traded funds saw remarkable success, with a whopping $17.8 billion in inflows, reflecting strong institutional demand for Bitcoin. The successful launch of these ETFs signals growing mainstream adoption, offering a new layer of credibility to Bitcoin as an investment.

Read more about how Goldman Sachs Holds Over $400M in Bitcoin ETFs

Another major catalyst in 2024 was Bitcoin’s halving event in April. Every four years, Bitcoin undergoes a halving, where the reward for mining new blocks is cut in half, reducing the number of new Bitcoins entering circulation. Historically, halvings have triggered significant bull runs, as the reduced supply leads to increased demand. Although it’s uncertain whether 2024’s halving will produce the same explosive gains as previous ones, it remains a positive factor for Bitcoin’s long-term price appreciation.

In addition to crypto-specific events, broader macroeconomic factors are also at play. Earlier this month, the Federal Reserve cut interest rates for the first time in over four years. Lower rates can stimulate risk-on behavior among investors, as holding cash becomes less attractive. With lower yields on traditional assets like savings accounts and bonds, investors may turn to higher-risk assets like Bitcoin in search of better returns.

Learn How the Federal Reserve’s Rate Cuts Impact Bitcoin and the Broader Cryptocurrency Market

Why Bitcoin Below $70,000 is a Buying Opportunity

From a short-term perspective, the current combination of ETF success, halving effects, and a potentially more accommodative monetary policy creates a bullish outlook for Bitcoin. These catalysts provide strong support for a breakout in Bitcoin’s price.

However, investors should approach Bitcoin with a long-term mindset. Despite the short-term volatility, Bitcoin’s fundamental value lies in its scarcity, decentralization, and potential as a store of value. Unlike fiat currencies, Bitcoin has a fixed supply cap of 21 million coins, which provides a hedge against inflation and currency debasement. As governments around the world continue to expand their money supply, Bitcoin’s hard cap becomes even more appealing as a safeguard against monetary manipulation.

In emerging markets, Bitcoin offers something even more critical: access to the global financial system. For citizens in countries with unstable currencies or limited banking infrastructure, Bitcoin is a lifeline that enables them to store and transfer value across borders without relying on intermediaries. This use case gives Bitcoin a unique position as a decentralized, borderless asset.

The Long-Term Case for Bitcoin: $70,000 and Beyond

Looking ahead, many investors compare Bitcoin to gold, another scarce asset that has long been considered a store of value. With the total market value of all gold estimated at $18.1 trillion, Bitcoin could have significant upside if it achieves similar status. At current levels, Bitcoin would need to rise about 1,300% to reach the same market value as gold, which would put its price well above $800,000 per coin.

Although it’s impossible to predict when or if Bitcoin will achieve such valuations, its unique properties make it an attractive investment for those seeking to diversify their portfolios. While volatility is part of the game, the potential for long-term gains remains substantial, particularly as more institutions and investors recognize Bitcoin’s value as a digital store of wealth.

Should You Buy Bitcoin Now?

If you’re considering buying Bitcoin under $70,000, it’s essential to keep both short-term catalysts and long-term potential in mind. With ETF inflows, halving effects, and favorable macroeconomic trends supporting the price, now could be an excellent time to invest. But remember, Bitcoin should be viewed as a long-term investment—one that could offer significant rewards as part of a diversified portfolio.

While no one can predict the future with certainty, Bitcoin’s scarcity, increasing adoption, and resilience in the face of market turbulence make it a compelling option for investors looking to capitalize on the next wave of digital finance.

Should You Invest $1,000 in Bitcoin Right Now?

Before making any decision, take into account that while Bitcoin is a unique asset, it is also highly volatile. Diversifying across assets is always a prudent strategy.

For investors who are ready to hold for the long term, the current price offers a solid entry point with potential upside that could extend well beyond $70,000.

 

Note: The opinions expressed in this column are those of the author and do not necessarily represent the views of FXCOINZ, its owners, or affiliates.