With the recent movements in the markets, investors are starting to wake up from their crypto winter bear market slumber. Many are wondering if investing in BTC could be a good way to start off the upcoming bullish cycle.
This article will present you with some hard facts when it comes to Bitcoin, including present and future updates. This should provide you with sufficient information on whether you should convert Ethereum to Bitcoin right now and benefit from the upside potential.
BTC Key Facts
Bitcoin is the original cryptocurrency. It introduced the world to blockchain technology and started a genuine financial revolution. The mysterious Satoshi Nakamoto wanted to create a decentralized currency that would prevent any institutions from controlling its issuance. This would allow for the creation of a trustless monetary system, without the need for intermediaries.
As a result, they imagined a decentralized ledger of records, where each transaction would be publicly recorded. In the Bitcoin network, miners compete to solve mathematical puzzles and create blocks of transactions, linked to each other through cryptography.
Consequently, bitcoins are issued following a predetermined algorithm. There is a capped supply of 21 million coins, out of which 19.5 million are already in circulation. Every four years, the rewards for creating new blocks are halved, decreasing the released supply over time.
This deflationary nature of BTC has allowed it to become one of the strongest store-of-value assets on the globe. Institutions and retail investors have embraced its many benefits such as its deflationary nature, transportability, security, and low transaction fees.
Bitcoin Market Analysis
Bitcoin’s price has always been cyclical with high amounts of volatility in between. The markets are usually divided into bull and bear market periods, with high upside and downside potential, respectively.
However, in the long term, BTC and its holders have always come out as winners, as the asset’s value is continuously increasing over time.
In the previous section, we mentioned the reward halving of the mining rewards for newly minted BTC. This pre-programmed event in the network has usually been a catalyst for the price to enter a bullish cycle. The next halving should occur in April 2024 and start reflecting on the price relatively soon. And when the BTC price moves up, market pairs like FIL vs STORJ also benefit from this momentum.
Another important event in the BTC market is the very probable spot BTC ETF approval by the SEC in the United States. For those unfamiliar with the concept, ETFs allow individuals and institutions to invest in assets without actually holding them.
The spot ETF approval would allow trustworthy institutional custodians like Blackrock and Grayscale to directly invest in BTC. At the same time, they will be able to propose this financial product to the mainstream consumer. The removal of self-custodianship should allow millions of investors to skip a significant barrier to entry into the BTC market.
BTC Future Price
With all that said, let’s take a look at some price predictions from price analysis websites, considering BTC is currently trading at $30,500.
Priceprediction.net provides a maximum price of $37,300, offering just a small upside potential for this year. However, in the long term, their forecast reaches $78,762, offering 2.5x ROI at the current price.
Digitalcoinprice.com has much more bullish views for the original crypto. The website expects BTC to reach $111,167 in 2025, more than 3x returns from the current level.
Is It The Right Time to Buy BTC?
There’s a saying in the crypto industry that there’s no bad time to buy BTC. The asset eventually surpasses its all-time highs on long timeframes. Considering the upcoming halving and the ETF eventuality, this might be the best time to get BTC even for the mid-term investor.