If you haven’t invested yet in Bitcoin. 2023 may be the right time to invest in top cryptocurrency. In this article, we have got you all covered. Rising interest rates and the end of monetary easing are the key culprits behind Bitcoin’s pullback. However, the future may look a lot more like 2021 than 2022 for Bitcoin based on a number of recent developments.
Here are three reasons why Bitcoin will be a Good Investment in Future
Institutional Adoption:
There has been a significant uptick in the institutional interest of late, with more big-name companies like Tesla and Square making major investments. This could drive more demand for Bitcoin, resulting in a potential price increase. According to Fidelity management’s annual Fidelity Digital Assets survey, 58% of institutional investors surveyed purchased cryptocurrency in the first half of 2022.
In addition, 74% of those polled stated that they planned to invest in cryptocurrency at some point in the future. Fidelity surveyed 1,052 institutional money managers from North America, Europe, and Asia, so this was no small sample size. These institutional investors have significantly more purchasing power than the average retail investor, and their growing market presence could theoretically drive the price of Bitcoin higher.
Growing Acceptance:
Governments and central banks around the world are also increasingly recognizing Bitcoin as a legitimate asset. This could help ease some of the regulatory uncertainty and make it easier for more institutional investors to get involved. Bitcoin adoption is increasing among major technology and financial firms.
For years, critics of Bitcoin have tried to dismiss its worth as an investment by claiming that it lacks a wide range of applications. Google parent Alphabet recently announced its plan to allow customers to pay for Google Cloud using Bitcoin and other cryptocurrencies, while Mastercard announced its plan to collaborate with crypto firm Paxos to help traditional banks offer crypto trading and investing on their platforms.
Increasing Use Cases:
Recent developments such as the launch of the Lightning Network and the adoption of blockchain technology by major companies like Microsoft, Amazon, and IBM could open
up new avenues for Bitcoin to be used as a payment method and store of value. In addition, the upcoming launch of Ethereum 2.0 could make it easier for developers to create decentralized applications on Ethereum, which would further increase the use cases of crypto.
Will Fed actions affect the price of Bitcoin ?
It is possible that the Fed’s easing of rate hikes could have a positive effect on the price of Bitcoin. While low-interest rates often reduce the demand for traditional assets such as stocks and bonds, they can create an environment that is more conducive to investing in risky assets like Bitcoin.
The rate hikes did manage to crash many speculative, long-term assets such as Bitcoin and tech stocks. Many market observers believe that the Fed will have to slow its rate hikes in the near future after raising interest rates from 0.25% to 0.5% in March to 3.75 to 4%.
If the Fed eases off the gas and allows rates to stabilize, investors should feel more at ease investing in Low-interest rates also tend to increase liquidity in financial markets, which can lead to increased demand for Bitcoin. However, it is difficult to predict how the Fed’s actions will ultimately affect the price of Bitcoin.
Bitcoin Live Price Update
Bitcoin is currently trading at $17,259.64 USD, with a 24-hour trading volume of $21,265,740,003 USD . In the last 24 hours, Bitcoin has gained 1.73%. The live market cap of $331,814,638,328 USD. It has a circulating supply of 19,224,887 BTC coins and a maximum supply of 21,000,000 BTC coins.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
