Bitcoin is the world’s largest and most well-known cryptocurrency.
In 2024, it will remain the main player in the crypto investing game, despite its volatility and recent regulatory changes.
As global events affect and shape the price of Bitcoin, many new and even experienced investors ask themselves: “Is it the right time to buy Bitcoin?”
In this post, we are going to look at the current state of BTC and the various factors that have impacted global economic markets. We will also examine the risks involved and compare Bitcoin to other investment classes.
We hope that by the end you will have a clearer understanding of whether you should buy more Bitcoin in 2024.
Is it a Good Time to Invest in Bitcoin?
Undoubtedly, Bitcoin has had an impressive run from its start. Although prices have fluctuated greatly from time to time, with some notable crashes throughout the years, the total BTC trend has been on the up.
Understanding Bitcoin’s Volatility in 2024
Bitcoin is still one of the most volatile assets in the financial market.
In 2024, its price had significant movement, rising to around $73,000 in March, then later dipping to the $50,000 mark.
Despite these swings, the overall trend has been positive, with a return of 46.9% since January 1, 2024 to date.
Bitcoin Monthly Prices for 2024
| Date | High (USD) | Close (USD) |
|---|---|---|
| October 2024 | $64,110.98 | $62,089.95 |
| September 2024 | $66,480.70 | $63,329.50 |
| August 2024 | $65,593.24 | $58,969.90 |
| July 2024 | $69,987.54 | $64,619.25 |
| June 2024 | $71,907.85 | $62,678.29 |
| May 2024 | $71,946.46 | $67,491.41 |
| April 2024 | $72,715.36 | $60,636.86 |
| March 2024 | $73,750.07 | $71,333.65 |
| February 2024 | $63,913.13 | $61,198.38 |
| January 2024 | $48,969.37 | $42,582.61 |
This volatility might seem scary, but actually, it offers good opportunities for both traders and long-term investors.
Factors Influencing Bitcoin’s Price Today
Different influences have impacted Bitcoin’s price change in 2024. A main influence is regulatory developments and global institutional interest.
In January, the SEC approved the first 11 Bitcoin spot ETFs in the United States, which boosted Bitcoin interest around the world.
Other influences, like policy regulations, tax implications and responsibilities as well as inflation rates and hedging against fiat currency have all added to the price changes in BTC.
Compare Bitcoin and Fiat Currency in real time
The Impact of Economic Trends on Bitcoin
As 2024 has progressed, we have seen many global issues take rise. This only contributes to fears and therefore price fluctuations.
For example, Bitcoin’s price movements have been closely linked to stock prices in the sense that investors and traders are treating crypto the same way they treat stocks.
This means that price movements trend similarly.
Aspects like supply and demand, geopolitics, and regulations all affect both traditional stocks and Bitcoin.
Influences Affecting Price: Traditional Stocks vs. Bitcoin
| Factor | Traditional Stocks | Bitcoin |
|---|---|---|
| Economic Reports | High Influence | Moderate Influence |
| Interest Rates | High Influence | Moderate Influence |
| Corporate Earnings | High Influence | No Influence |
| Government Regulations | Moderate Influence | High Influence |
| Global Events | Moderate Influence | Moderate Influence |
| Technological Development | Low Influence | High Influence |
| Market Sentiment | Moderate Influence | High Influence |
| Adoption & Usage | No Influence | High Influence |
| Halving Events | No Influence | High Influence |
Long-term vs. Short-term Investing
Bitcoin investors typically fall into two categories:
1️⃣Long-term holders (HODLers)
2️⃣Short-term traders
Each investing strategy has its own risks and objectives.
Long-Term Investing
In general, most experts will always suggest taking a long-term hold stance on investing in Bitcoin.
This strategy has proven to be profitable, as BTC has had impressive long-term growth regardless of its volatility.
❗Remember to always store your Bitcoin in a long-term cold wallet for protection.
Bitcoin’s annual compounded growth rate (CAGR) has reached 63% as of today which is significantly higher than gold and the S&P 500.
Bitcoin has a limited supply of 21 million coins. As it becomes more popular and adopted by global institutions, its appeal for long-term investing is ideal.
Some experts are predicting a bullish upcoming year, forecasting that Bitcoin will reach between $150,00 – $200,000 within the next year.
So, just how long should you hold onto Bitcoin?
Although all signs are pointing for you to invest in the long term, you need to clearly understand your risk tolerances and know not to panic when prices drop.
Throughout the long term (10-year minimum), prices will fluctuate.
If you are comfortable riding out the ups and downs and see the potential in the future of crypto, then it’s a great time to invest in Bitcoin as predictions are pointing to it only growing in value.
Bitcoin Price Predictions (2024 – 2034)
Bitcoin for Short-term Traders
The biggest question to ask yourself is if it’s worth the risk.
Yes, short-term trading in Bitcoin can be very profitable but comes with increased risks, especially for those who are not experienced experts.
Just in 2024 alone, Bitcoin’s prices have swung dramatically, providing good opportunities for day traders and swing traders to capitalize on these movements.
But, they require sophisticated tools and an expert understanding of technical analysis.
While there is a potential for making high and quick profits, the risk tolerance needed is extremely high and requires someone who can make fast, non-emotional decisions. Anyone who is going to take this on must understand that it will be a full-time job, monitoring the market and analyzing performance tools multiple times a day.
Comparing Bitcoin to Traditional Investments
When we look at traditional assets like gold, real estate, and stocks, Bitcoin has historically had a much higher return.
Gold is one of the most popular comparisons due to its function and ability to hedge against inflation. Bitcoin has commonly been called “digital gold” for that reason.
When deciding whether or not Bitcoin is safe, you always want to look at other investments and asset classes and compare their returns to your personal goals and risk tolerances.
Material Bitcoin is the safest and easiest way to store and protect your Bitcoin investment.
It is user-friendly and is one of the best hardware wallets available.
It ensures 100% cold storage, keeping your private keys offline for maximum security.
What are the Risks of Buying Bitcoin Today?
Bitcoin has great potential, but it’s important to understand its risks. Let’s break down the key factors to consider when evaluating whether it is a good time to buy Bitcoin or not.
There are three things you should consider…
1️⃣Just how volatile is Bitcoin and can you handle it?
2️⃣Can you handle Bitcoin market corrections?
3️⃣Is Bitcoin really a safe investment? – Says who?
As we’ve mentioned time and time again, Bitcoin is known for its volatility, so ways to help mitigate those risks are to:
➡️Diversify: Spread your money across different assets to reduce the impact of wild price swings or crashes.
➡️Dollar-Cost Averaging: Set up a fixed price amount to invest in Bitcoin regularly. This helps to reduce the impact of sudden price swings.
When big regulatory news or global economic events occur, it’s common for price corrections to hit. We saw this happen this past summer when BTC prices dropped from a high of $73,000 to $50,000 in August.
This was all brought on by a shift in U.S. Federal Reserve policies.
On the other hand, many in the U.S. and around the world say regardless of these price changes and corrections, BTC always recovers.
Therefore, the debate about Bitcoin being a good and safe investment carries on.
It is your responsibility to find true resources and learn how to read market trends.
When is the Best Time to Buy Bitcoin?
| Strategy | How To |
|---|---|
| Buying Bitcoin During Dips |
Risks: Prices may continue to fall further, so this strategy works best for investors who can tolerate volatility. |
| Using Dollar-Cost Averaging (DCA) |
This helps to reduce the impact of volatility and avoids the risk of investing a large sum at a market peak. |
| Major Events Impacting Bitcoin’s Price (Halving, ETFs) |
Tip: Investors monitor these events closely for potential buying opportunities.
|
What Experts Say About Bitcoin in 2024
2024 has proven to be a year full of surprises and global impacts.
From international wars and the upcoming U.S. elections to institutional adoption and SEC acceptance of ETF trading, experts seem to be very positive about Bitcoin’s future.
Some major players in the investing world, like Michael Saylor, an American entrepreneur, have predicted that Bitcoin will continue to grow and reach $13 million per coin by 2045! He thinks that the continued adoption and use of BTC as a mainstream asset with accelerate its growth in the upcoming years.
Another popular advocate for Bitcoin is Elon Musk, who has bought large amounts of Bitcoin not only for his personal wealth but as a part of TESLA.
Finally, Mark Cuban is another huge shark in the world of business and investing who swears by crypto, especially Bitcoin, as the future of the American economy.
Is It a Good Time to Buy Bitcoin vs. Other Cryptocurrencies?
Bitcoin is the most influential cryptocurrency, as it continues to lead the market in terms of capitalization and adoption.
While Ethereum and other altcoins give investors innovative features and new tech potential, they are still far behind Bitcoin in terms of value and adoption.
When comparing Bitcoin to other cryptocurrencies, you must look at its performance, adoption rates, and its regulations.
FAQs
Should I invest in Bitcoin Right Now?
- Yes, as Bitcoin has proven to have long-term potential, it’s a good investment to include in your portfolio. Using DCA is a great strategy to combat when to buy BTC.
What major events should I watch for Bitcoin price changes?
- Bitcoin halvings, ETF launches, and regulatory updates are major events that can impact its price.
Is Bitcoin a safe investment compared to other cryptocurrencies?
- Bitcoin is the most established crypto on the market, making it a more secure choice.
How much of my portfolio should be in Bitcoin?
- It depends on your risk tolerance. Generally, most experts suggest investing about 5% into BTC.
Will Bitcoin’s price go back up?
- While Bitcoin’s price fluctuates, its long-term trend has been upward. Experts believe it will only continue to rise in value over the next decade.
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