Bitcoin is a digital asset and it is something that you can rate or love but you cannot ignore it. Bitcoin has crossed its all-time high price that was created in 2021 and NOW in 2024, it is expected to create another all-time high price. Again its a market and it is hard to predict how things will move but looking at the current momentum in the market more people are bullish on Bitcoin price. Even I am bullish and I expect that by the end of this year or in the year 2025, we are going to see a significant rise in Bitcoin value.
There are reasons behind this price appreciation and we can't ignore them because it is not a temporary value appreciation. Technically it is not a pump instead its the result of growing demand. The market works on supply and demand format where we know that the increase in supply results in value appreciation and the same has been done on bitcoin. Ethereum is also turning out to be another hot investment in this market because it is also Moving towards its all-time high price which was created in the year 2021.
SPOT ETF triggered Bitcoin Demand
This is one of the biggest news or events we have seen this year about Bitcoin. The spot ETF has certainly triggered the demand for Bitcoin significantly and because of this NOW we see how the price is moving upside. Although it was expected that the impact would take a couple of months to be seen in this market however that has not been the scenario and for the first time Bitcoin has crossed its all-time high before the halving event. Now the question is are we going to make it 100K or something even before the halving? It is hard to answer this question because no one knows how things will win this market in the coming weeks and months.
Bitcoin Halving
The Bitcoin halving event is just 39 days away from now however it is dependent upon the block but most likely it is going to happen in April. Usually around this event the price of Bitcoin crashes and then after a couple of months post-event we see the price going up and that has been the trend in the past. This time looks like things are not going to be the same and the way Bitcoin price is going up can change the historical trend and also take it to another all-time high but again nothing can be so short since we don't know what is going to happen in the market.
Halving is another big event for Bitcoin where the Bitcoin mining reward will be reduced by 50% which will result in a cost price increase for Bitcoin generation. It is obvious that the miners are going to be affected by this reduction and this is why it is highly anticipated that the value of Bitcoin will appreciate getting the cost price adjusted so that minus is not in loss. Now because the Bitcoin value is quite high hence I am looking forward to seeing how this adjustment will happen and at what point the cost of Bitcoin generation will be justified. Even now different countries have different cost prices for Bitcoin mining but in the current price range, no country is at a loss and no matter what price of electricity they consume. Now Bitcoin is also getting mined through green energy but that ratio is quite low however it is expected that in future this is going to expand.
Now coming back to the question of whether it is the right time to invest in Bitcoin or it is time to wait for some correction. I think it is the time when we can wait for some time but again this is not financial advice because I don't know what will be the Next Bitcoin move. I did DCA on Bitcoin for a long time but after the exchange URL ban, I had to stop this. I did not start this dca on the Indian exchange because I did not have the confidence to do it. After ALL, there have been many issues with Indian exchanges in the past and again I don't want to be in trouble when I can't even withdraw my funds. Maybe I'll figure out some other options to do DCA on Bitcoin because I believe if you are talking about long-term strategy then even now is the right time to invest in Bitcoin provided you are doing it through DCA and for the long term.
Thank you