Why Now Is A Good Time To Buy Bitcoin

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Bitcoin (BTC) has surged 27% in the past month as euphoria around the possible imminent approval of spot Bitcoin ETFs whipped crypto markets into a frenzy.

Yet despite that sharp run-up, also fuelled by the coming Bitcoin halving in April and bullish predictions by heavyweight investors including Ark’s Cathie Wood and Fidelity, there are still strong reasons for buying the king of cryptocurrencies now, some analysts say.

They cite three key reasons for optimism over its price outlook. Each of them alone might be enough to drive a new Bitcoin bull run, but converging as they do now makes for what Jan van Eck, CEO of $76 billion in assets fund manager VanEck, calls a ”close to perfect trade.”

Here are those three key reasons:

Spot Bitcoin ETF Approvals

The crypto industry has been trying to secure a spot Bitcoin ETF since the Winklevoss twins filed their first proposal in 2013. But the US Securities and Exchange Commission has stymied progress at every turn, citing objections from lack of clarity, to lack of investor protection, to an inability to prevent market manipulation in spot Bitcoin trades.

The situation changed dramatically in early summer 2023 when BlackRock — one of the world’s largest asset management companies and a premier provider of investment management — filed its first Bitcoin ETF proposal.

The market reacted almost immediately with the start of a price surge that took Bitcoin back to $30k, and then to $35k.

A landmark legal victory for Grayscale Investments over the Securities and Exchange Commission (SEC) in August also was key in boosting optimism about regulatory approval. A court then ruled that the SEC’s decision to approve Bitcoin futures ETFs, but not spot Bitcoin ETFs, was “arbitrary and capricious.’’

When the SEC allowed an appeals deadline to pass, the crypto industry became convinced that approval of spot Bitcoin ETF products is only a matter of time.

The ETF hype is a key driver behind Bitcoin’s price surge in the past several months and also a key reason behind why many analysts expect its price to continue to climb.

Bitcoin Halving

The second reason why this may be the right moment to buy Bitcoin is the upcoming Bitcoin block rewards halving, which is scheduled to take place in April.

Historical data shows that Bitcoin price would go up several times higher than its former ATH during a specific period after the halving takes place. Around six to twelve months after block rewards get cut in half, the coin starts seeing a rally that breaks all former records and milestones.

Some in the crypto industry claim this is only a coincidence and that the halving should not be taken as a signal of the upcoming price surge. While there is no definitive proof that it does trigger a price increase, there is also little that backs the opposite claim.

Bitcoin As Digital Gold

Another reason for buying Bitcoin right now is its status as digital gold, and thus as a rising competitor to actual gold.

Bitcoin has everything it needs to take on this role. It is capped at 21 million coins. So whereas central banks can print fiat money and those undermine its value, that cannot happen with Bitcoin,

ARK Investment Management‘s Cathie Wood says Bitcoin (BTC) is a better deflation hedge than gold or cash, according to a recent Bloomberg report.

“Bitcoin is a hedge against both inflation and deflation because there’s no counterparty risk, and institutions are barely involved,” said Wood, speaking on Bloomberg’s “Merryn Talks Money“ podcast. “It’s digital gold,”

With Bitcoin, there is also no need to pay for its storage and security, unlike physical gold, which must be secured in vaults.

Bitcoin-Themed Alternatives

A Bitcoin bull run will likely raise all crypto boats, albeit some more than others. Those positioned to gain the most are likely to be so-called Bitcoin alternatives, especially those tied to the three reasons cited above. Here are two coins currently in presale that stand out:

Bitcoin Minetrix (BTCMTX)

The first of the two Bitcoin-themed alternatives is Bitcoin Minetrix (BTCMTX), a cloud mining project for Bitcoin. The project features its token, BTCMTX, which users can purchase and later stake on the platform. Doing so grants them credits, which can be used for mining Bitcoin.

The platform and the mining process are fully decentralized and transparent. The project was designed to be that way to bring the crypto users’ faith back into cloud mining. In the past, countless cloud mining platforms emerged, offering significant earnings to those who purchase their mining plans.

Still, over time, many turned out to be fraudulent, while some failed for one reason or another.

Bitcoin Minetrix intends to reassure users that there is still legitimate cloud mining and that its platform is one of them. It has a well-written whitepaper; it has been audited and it is fully transparent and decentralized.

So far, its presale has already raised $3.6 million, suggesting its efforts have paid off.

Bitcoin ETF Token (BTCETF)

The second Bitcoin-themed cryptocurrency is Bitcoin ETF Token (BTCETF).

Explaining the fifth and final Milestone for #BitcoinETF. 5️⃣

This moment will show Bitcoin's strength and stability.

When the price of one #Bitcoin closes a daily candle above $100,000, 5% of the total #Token supply will be burned and transaction tax will reduce from 1% to 0%. pic.twitter.com/8nYjTkDl83

— BTCETF_Token (@BTCETF_Token) November 7, 2023

It is a cryptocurrency that’s tied its fate to the regulatory approval of spot Bitcoin ETFS. The project keeps a close eye on any ETF-related development, and it has a series of goals and milestones, including the first ETF approval, ETF launch date, ETF assets hitting $1 billion, and Bitcoin reaching the price of $100,000 per coin.

Bitcoin ETF Token is an ERC-20 token that can be staked in the project’s smart contract to earn passive rewards at a dynamic rate. It has been created to celebrate the expected arrival of Bitcoin ETFs in the US, and it claims that those who stand to benefit the most are crypto users who purchase BTCETF before the actual approval happens.

So far, its presale has raised over $37.8k in just a few days, selling BTCETF for $0.005 per unit. Those interested can purchase the token with ETH, USDT, or their credit/debit card.

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