Bitcoin began 2024 with strong momentum, but market enthusiasm has since stabilized. Over the five years preceding its all-time high, Bitcoin surged 1,760% in value. However, since peaking in March 2024, its price has dipped approximately 13%. While such a drop might seem significant for stocks, it’s relatively modest in the volatile crypto market. Bitcoin has largely traded sideways over the past six months, leaving investors anticipating a breakout.
Is now the right time to buy Bitcoin below $65,000?
Recent Developments in Bitcoin
2024 has been pivotal for Bitcoin, marked by several key events:
- Spot Bitcoin ETF Approvals:
In January, the SEC greenlit spot Bitcoin ETFs, legitimizing Bitcoin for institutional and retail investors. Over $17 billion has flowed into these ETFs, underscoring growing mainstream adoption. - Halving Event:
On April 19, Bitcoin underwent its fourth halving, reducing miner rewards by 50%. Historically, halvings trigger bull runs within 12–18 months, suggesting potential upward momentum ahead. Political and Economic Catalysts:
- U.S. Election: Both major candidates have expressed pro-crypto stances, with Donald Trump advocating for the U.S. to lead in crypto innovation.
- Federal Reserve Policies: Expected interest rate cuts could drive capital toward risk assets like Bitcoin.
Why Bitcoin’s Long-Term Value Matters
Beyond short-term catalysts, Bitcoin’s foundational strengths deserve attention:
- Fixed Supply:
With a hard cap of 21 million coins (94% already mined), Bitcoin’s scarcity contrasts sharply with inflationary fiat currencies. - Hedge Against Financial Instability:
As central banks debase currencies, Bitcoin’s decentralized nature positions it as a store of value.
Should You Buy the Dip?
Currently trading 18% below its March 2024 peak, Bitcoin under $65,000 presents a potential entry point for long-term investors. Consider these steps:
- Assess Risk Tolerance:
Crypto remains volatile—only invest what you can afford to lose. - Diversify:
Allocate Bitcoin as part of a broader portfolio.
👉 Learn how to diversify with crypto
FAQs
Q: Is Bitcoin a good investment in 2024?
A: Yes, if you believe in its long-term scarcity and adoption trends, though short-term volatility persists.
Q: How does the halving affect Bitcoin’s price?
A: Past halvings correlate with bull markets due to reduced supply pressure.
Q: What risks should I consider?
A: Regulatory changes, market sentiment shifts, and technological risks (e.g., network security).
Final Thoughts
Bitcoin’s current price may appeal to those bullish on its decade-long trajectory. Stay informed, diversify, and explore crypto strategies to navigate this dynamic asset class.