Bitcoin Prices Are Expected to Rise: Is it True?
Recently, there have been several news articles released which state that in 2024, Bitcoin prices could rise above $150,000. But is it true? And if so, is there a reason financial analysts are predicting the rise?
We’re going to dissect these complicated predictions, so keep reading to find out whether or not you can expect Bitcoin prices to rise in the coming year.
Why Do Financial Analysts Think Bitcoin Prices Will Rise?
Bitcoin is becoming more widespread, and as such, there are many lawmakers around the world discussing its use. One of those is the SEC (Securities and Exchange Commission), which governs traded stock and securities within the United States.
Currently, the SEC is reviewing the proposal of Bitcoin and other cryptocurrency ETFs and deciding whether or not it will be legal to list them on exchanges. One financial company, Alliance Bernstein, expects the SEC to approve the listing of the ETFs. They say that if the approval goes through, Bitcoin will rise in value to over $150,000 per coin in the coming year.
Of course, this is highly speculative, and we see no indication that Alliance Bernstein has insider knowledge of the SEC’s pending decision. However, if the decision is positive, we do believe there is a chance that the value of Bitcoin could rise.
Alliance Bernstein isn’t alone, as financial analysts at JP Morgan also expect the SEC to approve Bitcoin ETFs. These analysts additionally believe that because Bitcoin will experience another halving event in April 2024, more miners will leave the space, creating room for the remaining current miners to make more profit.
Related: Bitcoin 101: A Beginner’s Guide
Will Bitcoin Prices Rise?
Unfortunately, predicting the prices of Bitcoin and other cryptocurrencies, while some financial analysts may think they know the answer, is highly speculative. Here at MintDice.com, we don’t believe predicting the prices of Bitcoin is as simple as an SEC decision.
Sure, the SEC making Bitcoin ETFs legal would increase the number of investors interested in Bitcoin ETFs, but we don’t necessarily think this would cause a large number of the general public to buy Bitcoin.
Why? Well, there are already several ETFs on the market (non-Bitcoin), and society isn’t rushing out to buy the stock included in these ETFs. While people do buy ETFs, the correlation between the ETFs being purchased and the underlying stock rising in value is weak at best.
This does not mean we are against Bitcoin ETFs; it just means we aren’t ready to count our Bitcoin wins just yet, and we certainly don’t think predicting the future of Bitcoin is as simple as a single SEC decision.
Remember, the price of Bitcoin is directly related to supply and demand. This means for the price to rise, there would need to be an increase in the demand for Bitcoin, and we aren’t sure that legalizing Bitcoin ETFs will truly create the level of demand needed to get Bitcoin to $150,000.
Is it a Good Time to Buy Bitcoin?
Here at MintDice.com, we always think it is a good time to buy Bitcoin. But we also believe that the Bitcoin market is unable to be predicted. In the past, when we thought there would be a huge spike in price, we were shocked to see the crash in the winter of 2022.
Therefore, while we encourage everyone to buy Bitcoin, we don’t believe that you can time the market or that you should try to buy just because some financial analysts believe the SEC will approve Bitcoin ETFs. You should buy Bitcoin because you believe in the technology and truly want to be involved.
We also believe that Bitcoin is a long-term investment. This means if you buy it today, we think you should hold on to it as long as possible in order to reap the most benefits of Bitcoin as an investment. If you are looking for something to day trade, we highly recommend you focus on traditional stocks or other cryptocurrencies that aren’t Bitcoin.
Where Can You Buy Bitcoin?
The good news is that Bitcoin is becoming more and more widespread with every passing day. This means there are many places you can buy it if you are interested in investing.
We recommend looking into the following platforms:
· Coinbase
· Binance
· Kraken
· Bitstamp
· Bitfinex
· Gemini
Obviously, there are many more platforms than those we listed here, these are just the most reputable and easy-to-use platforms. If you have the know-how, buying Bitcoin from a decentralized platform like SushiSwap or UniSwap is always better for your privacy. But these platforms aren’t always easy to use, and you may need to have some general knowledge of cryptocurrency to avoid being caught in a scam.
Where Should You Store Bitcoin?
If you use any of the aforementioned platforms to buy Bitcoin, many of them have software wallets directly on the platform for Bitcoin storage. While these are easy and convenient, they aren’t the safest, as your cryptocurrency could be exposed to a hack or platform collapse. (Don’t believe us? Just look at what happened to FTX).
We highly recommend purchasing a cold wallet or hardware wallet, which will store your cryptocurrency safely offline. There are a few options to choose from, with the best being Ledger or Nano. Just ensure that you write down your seed and keep it in a safe place. If you lose this seed, you can possibly lose access to your Bitcoin permanently.
Overall, we hope that the speculation of Bitcoin climbing in price is true, however, we don’t take it as fact just yet. Bitcoin is a highly speculative cryptocurrency, and we don’t believe a single SEC decision is enough to send the price skyward. We will keep our eye on it, though, and hope for the best!
Regardless of whether or not you think Bitcoin will go up, we think it’s the best cryptocurrency to invest in. Keep in mind, though, that any investment in cryptocurrency, including Bitcoin, is risky and should be approached with caution.
