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Should You Buy Bitcoin While It’s Under $60,000?
The leading cryptocurrency is ready to take off, with some powerful catalysts working in its favor.
Despite an increase of 275% since the beginning of 2023 and 47% since the beginning of this year (as of July 3), Bitcoin (BTC 2.61%) has been basically trading sideways since the beginning of March. It seems that there is difficulty for the digital asset to break out and start marching towards a new record.
And as of the afternoon of July 5, Bitcoin is trading at around $56,500, or about 23% below its high. That’s why investors should add the the most important cryptocurrency in the world in their wallet, when it is less than $60,000.
Focus on the short term
As an asset that is only about 15 years old, digital currency is still reaching some milestones in its development journey. This January, the Securities and Exchange Commission finally approved the trading of find bitcoin exchange traded funds (ETF), a monumental moment in cryptocurrency history.
Since its approval, its price has jumped 24%. Money continues to flow into these ETFs. With the increased accessibility and convenience that funds provide, I think it is reasonable to assume that large pools of capital, such as pension funds and sovereign wealth funds, will move some money into Bitcoin over time.
In April, Bitcoin has undergone a halvingwhich cuts the new supply available to miners in half. This event occurs roughly every four years and has usually led to a major bull run for the cryptocurrency in the following 12-18 months. With demand rising for an asset whose inflation rate has just dropped, it makes sense for the price to rise.
And there is another potential near-term catalyst on the horizon. While inflation remains well above Federal Reserve‘s 2% target, there is hope that interest rates will start to fall sooner rather than later. When that happens, investors are incentivized to take on more risk to generate a higher return on their assets, which could lead to more capital inflows into Bitcoin.
Focus on the long term
Stepping back and focusing on the bigger picture, there are other reasons to be optimistic about its potential. For starters, there are a number of companies, particularly To blockwho are working on developing tools and services to help Bitcoin adoption. This could mean creating easy-to-use tools physical wallets for blockchain assets or launch new payment mechanisms that use cryptocurrencies.
I also think it’s important to consider how demographic shifts could impact Bitcoin for the better. Gen-Zers, defined as those ages 12 to 27, are more likely to own cryptocurrency than stocks, according to a survey conducted by online insurance retailer Policygenius in October. In a world that’s becoming increasingly digital, it makes sense that people would want to own something like the leading cryptocurrency as a store of value when they might think it’s more useful to them than the traditional financial system.
There will always be only 21 million bitcoins in circulation. Having this fixed limit, the digital currency is rarer than gold. And it is portable, divisible, and functional in transactions. It might be easy to believe that it is a superior good to gold.
The value of all the gold in the world is estimated at $15.9 trillion. As a conservative assumption, let’s say that Bitcoin’s market cap reaches half that level, or about $8 trillion. At that point, each Bitcoin would be worth about $380,000. That implies an impressive gain of nearly six times the current market cap. If it takes a decade to get there, investors are looking at a theoretical annualized gain of 21% in the price of the digital asset.
With Bitcoin trading well below the $60,000 level, I believe investors would be wise to consider buying with the intention of holding the cryptocurrency for the long term.
Neil Patel and its clients have no positions in any of the securities mentioned. The Motley Fool has positions in and recommends Bitcoin and Block. The Motley Fool has a disclosure policy.
News
Cryptocurrency Price August 1: Bitcoin Dips Below $65K; Solana, XRP Down Up To 8%
Major cryptocurrencies fell in Thursday trading following the Federal Reserve’s decision to keep its key interest rate unchanged. Overnight, the U.S. Federal Reserve kept its key interest rate at 5.25-5.5% for the eighth consecutive time, as expected, while also signaling the possibility of a rate cut at its next meeting in September. The unanimous decision by the Federal Open Market Committee reflects a continued wait-and-see approach as it monitors inflation trends.
CoinSwitch Markets Desk said: “Bitcoin has fallen below $65,000 after the US Federal Reserve announced it would keep interest rates unchanged. However, with markets now anticipating rate cuts at the next Federal Reserve meeting in September, the outlook for a Bitcoin rally by the end of the year has strengthened.”
Meanwhile, CoinDCX research team said: “The crypto market has plunged after the Fed decision. Tomorrow’s US unemployment rate announcement is expected to induce more volatility, with the ‘actual’ figure coming in higher than the ‘expected’ one, which is positive for cryptocurrencies.”
At 12:21 pm IST, Bitcoin (BTC) was down 3.2% at $64,285, while Ethereum was down nearly 4.5% at $3,313. Meanwhile, the global market cryptocurrency The market capitalization fell 3.6% to around $2.3 trillion in the last 24 hours.
“Bitcoin needs to clear its 200-day EMA at $64,510 to consolidate further. Otherwise, a retest of $62,000 could be in the cards,” said Vikram Subburaj, CEO of Giottus.
Altcoins and meme coins, such as BNB (3%), Solana (8%), XRP (5.7%), Dogecoin (5%), Cardano (4.6%), Avalanche (4.3%), Shiba Inu (3.8%), Polkadot (3.4%), and Chainlink (4%) also saw declines.
The volume of all stablecoins is now $71.64 billion, which is 92.19% of the total cryptocurrency market volume in 24 hours, according to data available on CoinMarketCap. Bitcoin’s dominance is currently 54.99%. BTC volume in the last 24 hours increased by 23.3% to $35.7 billion.
(Disclaimer: Recommendations, suggestions, opinions and views provided by experts are personal. They do not represent the views of the Economic Times)
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Altcoins WIF, BONK, RUNE, JUP Down 10% While Bitcoin Drops 4%
Altcoins dogwifhat, Bonk, THORChain, and Jupiter have suffered losses of more than 10%, while Bitcoin is down 4% in the last 24 hours.
After a period of relative calm yesterday, July 31, Bitcoin (BTC) price action has seen a drastic change as the cryptocurrency dropped by more than $3,500, bringing its value to $63,300. At the same time, altcoins mirrored this trend, with the total value of liquidated positions rising to nearly $225 million over the course of the day.
Initially, the week started on a positive note for Bitcoin, which reached its highest point since early June, hitting $70,000. However, this peak was short-lived, as it was quickly rejected, leading to a substantial decline, with Bitcoin falling below $65,500.
The cryptocurrency managed to regain some stability, trading comfortably at around $66,800. However, following a Press conference According to Federal Reserve Chairman Jerome Powell, the value of Bitcoin has fallen again to $64,300, down more than 3% in 24 hours.
BTC Price Chart 24 Hours | Source: crypto.news
The recession coincided with a relationship from the New York Times stating that Iran had called for retaliatory measures against Israel following the assassination of Hamas leader Ismail Haniyeh in Tehran, increasing the risk of further conflict in the region.
Meanwhile, on the economic front, the Federal Reserve decided to keep its benchmark interest rates in place, offering little information on a planned September rate cut. Powell also hinted that while no concrete decisions have been made on the September adjustment, there is growing consensus that a rate cut is likely.
Amid Bitcoin’s decline, altcoins have suffered even more significant losses. For example, dogwifhat (Wife) saw a 12.4% drop and (DISGUST) has suffered a 10% drop. Other altcoins such as THORChain (RUNE) also fell by 10%, while Jupiter (JUPITER) and the Ethereum naming service (ENS) decreased by 8% and 9% respectively.
Among the largest-cap cryptocurrencies, the biggest losers are Solana (SOL) with a decrease of 8%, (Exchange rate risk) down 6%, Cardano (ADA) down 4%, and both Ethereum (ETH) and Dogecoin (DOGE) recording a decrease of 4.4%.
Data from CoinGlass indicates that approximately 67,000 traders have been negatively impacted by this increased volatility. BTC positions have seen $61.85 million in liquidations, while ETH positions have faced $61 million. In total, the value of liquidated positions stands at $225.4 million at the time of writing.
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Riot Platforms Sees 52% Drop in Bitcoin Production in Q2
Bitcoin mining firm Riot Platforms has released its second-quarter financial results, highlighting a decline in cryptocurrency mined due to the recent halving.
Colorado-based Bitcoin (BTC) mining company Riot platforms revealed its second quarter financial results, highlighting a significant reduction in mined cryptocurrencies attributed to the recent halving event that took place in early April.
The company reported total revenue of $70 million for the quarter ended July 31, a decline of 8.7% compared to the same period in 2023. Riot Platforms attributed the revenue decline primarily to a $9.7 million decrease in engineering revenue, which was partially mitigated by a $6 million increase in Bitcoin extraction income.
During the quarter, the company mined 844 BTC, representing a decline of over 50% from Q2 2023, citing the halving event and increasing network difficulty as major factors behind the decline. Riot Platforms reported a net loss of $84.4 million, or $0.32 per share, missing Zacks Research forecast a loss of $0.16 per share.
Halving increases competitive pressure
The Colorado-based firm said the average cost of mining one BTC in the second quarter, including energy credits, rose to $25,327, a remarkable 341% increase from $5,734 per BTC in the same quarter of 2023. Despite this significant increase in production costs, the firm remains optimistic about maintaining competitiveness through recent deals.
For example, following the Recent acquisition Cryptocurrency firm Block Mining, Riot has increased its distributed hash rate forecast from 31 EH/s to 36 EH/s by the end of 2024, while also increasing its 2025 forecast from 40 EH/s to 56 EH/s.
Riot Platforms Hashrate Growth Projections by 2027 | Source: Riot Platforms
Commenting on the company’s financials, Riot CEO Jason Les said that despite the halving, the mining company still managed to achieve “significant operational growth and execution of our long-term strategy.”
“Despite this reduction in production available to all Bitcoin miners, Riot reported $70 million in revenue for the quarter and maintained strong gross margins in our core Bitcoin mining business.”
Jason Les
Following its Q2 financial report, Riot Platforms shares fell 1.74% to $10.19, according to Google Finance data. Meanwhile, the American miner continues to chase Canadian rival Bitfarms, recently acquiring an additional 10.2 million BITF shares, increasing its stake in Bitfarms to 15.9%.
As previously reported by crypto.news, Riot was the first announced a $950 million takeover bid for Bitfarms in late May, arguing that Bitfarms’ founders were not acting in the best interests of all shareholders. They said their proposal was rejected by Bitfarms’ board without substantive engagement.
In response, Bitfarms She said that Riot’s offer “significantly understates” its growth prospects. Bitfarms subsequently implemented a shareholder rights plan, also known as a “poison pill,” to protect its strategic review process from hostile takeover attempts.
News
Aave Price Increases Following Whales Accumulation and V3.1 Launch
Decentralized finance protocol Aave is seeing a significant spike in whale activity as the market looks to recover from the recent crash that pushed most altcoins into key support areas earlier this week.
July 31, Lookonchain shared details indicating that the whales had aggressively accumulated Aave (AAVE) over the past two days. According to the data, whales have withdrawn over 58,848 AAVE worth $6.47 million from exchanges during this period.
In one instance, whale address 0x9af4 withdrew 11,185 AAVE worth $1.23 million from Binance. Meanwhile, another address moved 21,619 AAVE worth over $2.38 million from the exchange and deposited the tokens into Aave.
These withdrawals follow a previous transfer of 26,044 AAVE from whale address 0xd7c5, amounting to over $2.83 million withdrawn from Binance.
AAVE price has surged over 7% in the past 24 hours amid buy-side pressure from these whales. The DeFi token is currently trading around $111 after jumping over 18% in the past week.
Recently, the price of AAVE increased by over 8% after Aave founder Marc Zeller announced a proposed fee change aimed at adopting a buyback program for AAVE tokens.
Aave v3.1 is available
The total value locked in the Aave protocol currently stands at around $22 billion. According to DeFiLlamaApproximately $19.9 billion is on Aave V3, while the V2 chain still holds approximately $1.9 billion in TVL and V1 approximately $14.6 million.
Aave Labs announced Previously, Aave V3.1 was made available on all networks with active Aave V3 instances.
V3.1 features improvements that are intended to improve the overall security of the DeFi protocol. The Aave DAO governance has approved the v3.1 improvements, which also include operational efficiency and usability for the network.
Meanwhile, Aave Labs recently outlined a ambitious roadmap for the projectwith a 2030 vision for Aave V4, among other developments.
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