Source: PaxForex Premium Analytics Portal, Fundamental Insight
With the recent introduction of new cryptocurrency exchange-traded funds (ETFs), acquiring Bitcoin for your investment portfolio has become more accessible than ever. The process no longer demands specialized knowledge about cryptocurrencies, separate accounts with specific cryptocurrency exchanges, or the creation of a digital wallet to store your Bitcoin securely.
However, even with these simplified avenues, you might still harbor reservations about committing a significant sum (e.g., $10,000 or more) to an asset class known for its historical volatility. Noteworthy investors, including Warren Buffett and Charlie Munger, have notably kept a distance from Bitcoin. Nonetheless, here are three compelling reasons why now could be the opportune moment to consider investing in Bitcoin.
Bitcoin's value has witnessed a remarkable ascent since 2011, escalating from $1 to its current price exceeding $62,000. Despite occasional setbacks, such as the 2022 downturn where Bitcoin lost 65% of its value, it has consistently outshone other assets for over a decade, securing its position as the world's top-performing asset.
For instance, from 2011 to 2021, Bitcoin outpaced every other asset class by a significant margin, boasting an annualized return of 230%. This far exceeded the returns of high-growth tech stocks, which posted a 20% annual increase. The trend persisted into 2023, with Bitcoin recording a 150% surge, reaffirming its status as the premier asset class globally. If Bitcoin maintains its robust performance in 2024, it stands poised to retain its position as the top-performing asset this year.
Consider this – with the advent of new cryptocurrency exchange-traded funds (ETFs), venturing into Bitcoin investment has become remarkably straightforward. You no longer require specialized knowledge about cryptocurrencies, a dedicated account with a cryptocurrency exchange, or the creation of a digital wallet to house your Bitcoin securely.
While the process has been simplified, you might still harbor reservations about allocating a substantial amount (e.g., $10,000 or more) to an asset class known for its historical volatility. Distinguished investors like Warren Buffett and Charlie Munger have notably steered clear of Bitcoin. Nonetheless, here are three compelling reasons why now might be the opportune moment to contemplate investing in Bitcoin.
Bitcoin's value has undergone a remarkable surge since 2011, catapulting from $1 to its current price surpassing $62,000. Despite occasional setbacks, such as the 2022 downturn where Bitcoin lost 65% of its value, it has consistently outperformed other assets for over a decade, cementing its status as the world's premier asset.
For instance, from 2011 to 2021, Bitcoin outpaced every other asset class by a significant margin, boasting an annualized return of 230%. This far exceeded the returns of high-growth tech stocks, which posted a 20% annual increase. The trend persisted into 2023, with Bitcoin recording a 150% surge, reaffirming its status as the top-performing asset globally. If Bitcoin maintains its robust performance in 2024, it stands poised to retain its position as the top-performing asset this year.
If that doesn't grab your attention, consider the fact that Bitcoin is also viewed as a potential hedge against inflation and financial uncertainty, earning it the moniker "digital gold" among institutional investors. Bitcoin is perceived as a secure asset capable of preserving its value during both prosperous and challenging economic periods.
While one can scrutinize the "digital gold" analogy, Bitcoin shares several inherent properties with gold. Much like the known theoretical limit of the world's physical gold supply, Bitcoin also has a capped lifetime supply of 21 million coins. With 19.6 million coins already in circulation, Bitcoin's relative scarcity will only intensify over time.
Investors are particularly drawn to the idea that Bitcoin, akin to gold, serves as a potential hedge against inflation. Unlike traditional fiat currency, Bitcoin cannot be arbitrarily printed to address economic challenges. The algorithm controlling the rate of new Bitcoin creation ensures a controlled approach. If excess Bitcoin creation is detected, the difficulty rate of Bitcoin mining rises, resulting in reduced Bitcoin generation – a stark contrast to the practices of central bankers.
Finally, another compelling reason to invest $10,000 into Bitcoin is its perceived role as the future of money. The evolution of currency from precious-metal-backed forms to fiat currencies backed by promises has paved the way for the next stage – purely digital money, where Bitcoin takes center stage.
The theoretical foundations of Bitcoin, as outlined in the original 2008 whitepaper, present a revolutionary vision. Initially designed as a "peer-to-peer electronic cash system," Bitcoin aimed to address the issues that led to the 2008 financial crisis. The first block of the Bitcoin blockchain even references bank bailouts, irresponsible monetary policy, and mismanaged fiscal policy.
When it comes to Bitcoin's risk-reward profile, investing in it offers access to substantial upside potential alongside a built-in hedge against inflation and economic uncertainty. From this perspective, it presents an unparalleled risk-reward profile.
If you believe that Bitcoin's prime days are behind it, think again. The prevailing consensus suggests that Bitcoin could surpass the $100,000 mark by the end of 2024. In the long run, industry expert Cathie Wood of Ark Invest speculates that its price might ascend as high as $1.48 million, potentially resulting in a 100-fold increase on a $10,000 investment today. This makes Bitcoin an enticing investment opportunity.
As long as the price is above 60000.00, follow the recommendations below:
Time frame: D1
As long as the price is below 34300.00, follow the recommendations below:
- Recommendation: long position
- Entry point: 67851.00
- Take Profit 1: 71000.00
- Take profit 2: 77000.00
Alternative scenario:
If the 60000.00 level is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 60000.00
- Take Profit 1: 55000.00
- Take Profit 2: 50000.00
