Bitcoin’s Opportunities: Why 2024 Remains a Prime Time for Investors
Bitcoin (CRYPTO: BTC) started 2024 with a bang, but the growth has subsided since the early months. Despite this slower pace, the current environment may still present an appealing chance to invest. Here are three reasons why Bitcoin remains an attractive buy — both for immediate gains and long-term stability.
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1. Renewed Interest in Bitcoin Spot ETFs
A key factor for Bitcoin’s price potential is the renewed enthusiasm surrounding spot Bitcoin ETFs. While these investments don’t ensure immediate price jumps, they’ve historically played a significant role in driving value. In the early months of this year, spot ETFs accounted for much of Bitcoin’s rise, with purchases exceeding ten times its daily production rate, creating fresh demand and pushing prices to record heights.
After a lull during the summer, ETF interest is reviving. Notably, BlackRock’s iShare Bitcoin Trust (NASDAQ: IBIT) saw $1.1 billion in new cash inflows last week, marking its best performance since March 2024. This inflow positions it as the top ETF over the past four years based on assets under management.
If this ETF buying trend sustains, it could boost Bitcoin’s price again, similar to its earlier rise this year.
2. Positive Outlook Following the Halving Event
April 2024 was marked by Bitcoin’s most recent halving, an event that occurs approximately every four years, halving the rate of new Bitcoin production. This typically leads to a supply shock, boosting demand and price. Historically, years with halvings see price increases, averaging about 100%.
However, extraordinary gains often occur in the year following a halving. On average, Bitcoin has appreciated by 350% within this timeframe. This pattern, combined with increased demand from spot Bitcoin ETFs, could mean noteworthy price movements ahead, making 2024 an ideal time for buyers to enter the market.
3. Bitcoin’s Enduring Value Proposition
In addition to short-term factors, Bitcoin’s long-term potential stands out in today’s economy.
Designed to be inflation-resistant, decentralized, and limited in supply, Bitcoin is particularly attractive as inflation and government debt levels grow. Its capped supply of 21 million coins offers a viable alternative for investors looking to step outside traditional financial systems.
Arguably, there is no “bad time” to invest in Bitcoin. While certain periods have historically offered better entry points, its unique characteristics keep it relevant in various market conditions. No Bitcoin holder who has maintained their investment for four years or more has ever experienced a loss, highlighting the asset’s resilience.
For those who recognize Bitcoin’s potential to reshape finance, it offers a rare investment opportunity. Increased demand driven by institutional adoption and ongoing technological advancements supports a positive outlook for Bitcoin. At roughly $70,000 today, Bitcoin could soon be seen as undervalued if it continues its current upward trend.
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*Stock Advisor returns as of October 28, 2024
RJ Fulton has positions in Bitcoin and iShares Bitcoin Trust. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
