Following records on December 5, the cryptocurrency is trading at the following prices: 43921 dollars. On December 6, you can buy one bitcoin for $43,866.
The main reason why the Bitcoin rate is currently at record levels is the expectations of crypto investors.
“The entire crypto market is waiting for the SEC (American Securities Commission) to approve the first exchange-traded funds (ETFs) for Bitcoin in the near future. If spot trading is approved, demand for Bitcoin (and other established currencies like Ether) will increase and its value will increase. And the “bullish” growth began before the regulator’s decision. That is, the potential future growth is based on the current rapidly increasing rate of the cryptocurrency, “miner Mikhail Kovalev (name changed at the request of the interlocutor) explained to socialbites.ca.
According to him, another factor is the approaching Bitcoin halving. This is a planned reduction in newly minted coins so that their number on the Internet will never exceed 21 million. Halving is built into the Bitcoin program code itself; The coin has already survived three times. Kovalev explained that each time Bitcoin’s rate decreased by two times, its rate reached another maximum.
How much will Bitcoin’s price increase?
Kovalev stated that the Russian crypto community is skeptical about the current increase in the value of the first cryptocurrency.
“This increase is due to regulatory processes, not market processes. So the current Bitcoin rate is not supported by anything special other than expectations. This means it could easily crash at even the slightest negative signal from American stock market regulators. I’m sure Bitcoin won’t go beyond the horizon anymore 45 thousand dollars. The miner stated that investors, miners and traders on crypto exchanges should not expect a repeat of spring 2021, when the rate exceeded $60 thousand.
BitRiver financial analyst Vladislav Antonov believes Bitcoin could become expensive in the near future 45-46 thousand dollars.
“From these levels, the price needs to enter a sideways trend, i.e. a narrower range, so investors can start preparing for the halving in 2024. However, due to high demand for coins, the price may rise due to inertia. The road opens after 46 thousand dollars 52 thousand dollars For Bitcoin,” said the expert.
Rapid increases in the value of cryptocurrency may have negative consequences. Antonov explained that crypto investors may start selling bitcoin en masse, which will lead to a sharp drop in its price.
“Perhaps once the SEC approves applications to create ETFs, investors will start taking profits and getting out of cryptocurrencies. After all, Bitcoin is up 163% year to date, a significant gain for the big players. “In case of a sale, the price of Bitcoin will start to fall,” the expert said.
Yuri Pripachkin, president of the Russian Association for Cryptoeconomics, Artificial Intelligence and Blockchain (RACIB), predicts that Bitcoin will cost around $50,000 in December.
When to buy Bitcoin?
In the fourth quarter, the Bitcoin rate tends to exceed January values. So, now is the time to amicably sell cryptocurrency to make money, not buy it for a lot of money.
Dmitry Machikhin, founder of BitOK crypto asset control, accounting and analysis service, said that the best time to buy Bitcoin is the first strong decline in the price of the cryptocurrency by 20%.
So, you should wait until the cost of the coin is around 33 thousand dollars. The expert believes that such a return is very soon. According to him, currently you can only buy Bitcoin in small amounts.
Senior lecturer at the Department of Economic Theory at the Russian University of Economics said that it is better to wait for prices to fall and distribute the savings earmarked for buying cryptocurrency in shares. GV Plekhanov Kava Hodja.
“For example, if there is a decline in prices at the beginning of 2024, you can make partial cryptocurrency purchases from this date until the end of January-March,” he advised.
It is worth remembering that any investment decision should always be made by carefully weighing the pros and cons and being realistic about your level of risk.