Bitcoin is closer to $45k at the time of articulating this piece. This is up from ~$16k this year. While the rise looks fascinating, there is a reason why one would want to be careful before buying Bitcoin. For starters, it is about the intention of getting on board. Any crypto enthusiast who is looking to add BTC to their portfolios may be doing so just to avoid the FOMO sentiment.
Under the influence of the FOMO (Fear of Missing Out) trend, less knowledge goes into buying BTC, or any other cryptocurrency for that matter. There is frequently an underestimate of loss and, as a result, a miscalculation of how much to invest.
Second, as the Spot Bitcoin ETF approval date by the SEC approaches, the opportunity to make a short-term profit may have diminished. Holders who added BTC when it was at its lowest mark have not just attained break-even but have also fetched profits by a broad margin.
Lastly, long-term holders can still buy the token since there is speculation that it will surpass the $100k milestone in the next 2–3 years. The original estimate was that Bitcoin would take the end of this year to reach the mark; however, volatility has expanded the timeline, and the community now expects success in the years to follow.
According to strategists, Bitocin may face many resistance levels before reaching its ATH of $65,000. That would be between $48k and $53k. The former is expected to have the greatest Bitcoin value by the end of 2023.
Experts believe that Bitcoin will perform well as long as it stays above the $38k mark, which currently serves as a support level, regardless of its value within the given timeframe. There is likely to be a hesitation or setback for Bitcoin in the next few days.
Spot Bitcoin ETF will provide a formal structure of investments to traders. The Commission has reportedly lined up all the applications for approval by January 10, 2024. Another instance that could kickstart the bull run for Bitcoin is its halving process, scheduled to happen in April. The halving process in April will cut the reward for Bitcoin mining from 6.25 BTC to 3.125 BTC.
The idea behind Bitcoin halving is to support the price rise and control the supply. Analysts have said that the incident is associated with supply scarcity, which increases prices. It is true, especially for long-term holders who could be selling their holdings after halving. Bitcoin long-term forecast estimates that the token will reach the $100k mark by the end of 2025. Spot Bitcoin ETF and Bitcoin halving could accelerate the movement.
Experts have linked the growth of Bitcoin after the Bitcoin ETF with the Gold ETF. The price of gold sparked a huge jump, not just for that year but for the seven years that followed.
After the approval of the Spot Bitcoin ETF, experts anticipate that Bitcoin will double or even triple in value.