If you’re asking yourself, “Is Bitcoin a good investment?” Here’s some news for you.
Bitcoin and other cryptocurrencies rose slightly on Thursday but stayed close to levels that have reigned for weeks in the midst of an unusually flat era for digital asset values. There are little indications that a dramatic move is imminent.
Bitcoin’s price has climbed by around 1% in the last 24 hours to $30,279. For much of the last month, the largest cryptocurrency has wavered between the psychologically crucial $30,000 mark and $31,000, with Bitcoin unable to maintain a 13-month high at $31,700 set last week following a pro-crypto court verdict.
Edward Moya, an analyst at broker Oanda commented that Bitcoin continues to waver around the $30,000 level.
Unlike the stock market, where the Dow Jones Industrial Average and the S&P 500 have been steadily rising, Bitcoin and other digital assets appear to be mainly stagnant in what has become the quietest time for crypto markets since early January. The lack of momentum is dampening some predictions that Bitcoin, which nearly quadrupled from its lows in late-2022 in the first six months of 2023, is on a bull market run.
“We’re not in a bull market, and an influx of significant capital into the broader crypto space is just not there yet,” said Andrew Lawrence, co-founder of decentralised custody solution Censo. “We’re likely going to experience persistent chop with Bitcoin and crypto assets more broadly, meaning more of this trend of rallies followed by pullbacks.”
Investors are focused on the regulatory landscape, particularly in the United States. While a federal court granted token maker Ripple a partial victory in a landmark battle with the Securities and Exchange Commission last week, driving Bitcoin to an annual high, significant doubts about legal clarity remain.
The result of fresh registrations for spot Bitcoin exchange-traded funds, notably from traditional financial behemoths like BlackRock (BLK), will almost certainly be the next significant trigger for cryptos.
“Legislative action, as it stands now, is still a ways away from coming to fruition,” Lawrence said. “Institutional money flowing into the digital asset space in the United States will likely not manifest in a major way until such legislative action comes to fruition. Certainly, approval of BlackRock’s proposed Bitcoin ETF would bring a lot of capital into the space. But the digital asset industry is more than just Bitcoin.”
So, if you’re wondering, “Is Bitcoin a good investment?” It is when you know when to invest in it.
Beyond Bitcoin, Ether, the second-largest cryptocurrency, rose less than 1% to more than $1,900. Smaller tokens, or altcoins, performed better, with Cardano rising 4% and Polygon rising 5%. Memecoins were also optimistic, with Dogecoin rising 3% and Shiba Inu rising 1%.