Some believe that price dips are the ideal moment to buy bitcoin. Catching a deal and profiting from the upswing initially sound enticing. What if it wasn’t a dip but rather the beginning of a long-term price decline?
We advise paying attention to the long-term macro backdrop while deciding whether or not to buy bitcoin at this time. You need to have a suitable amount of bitcoin exposure for you to be able to withstand 50% to 80% drawdowns.
Will Bitcoin Gain Its Growth in 2023?
We are all aware that BTC has increased by more than 80% since the year’s beginning. With such enormous and unexpected growth, it has undoubtedly outperformed a number of other important assets and provided fantastic returns to those who buy Bitcoin at a dips.
The market is really excited to see the biggest cryptocurrency in the world reach a new height and is looking forward to more. According to Marshall Beard, chief strategy officer at the American cryptocurrency exchange Gemini, this year will see Bitcoin reach new record highs. “The $100,000 price figure is an interesting number, if bitcoin gets to its previous record high of near $69,000,” he remarked. If Bitcoin actually reaches this mystic number, it will need to increase by 270% in order to reach the level of $1 lakh.
Best time to buy Bitcoin in india
The fact that 2024 will be the year of Bitcoin’s halving event is one of the primary reasons why analysts are positive about the cryptocurrency. Every four years, there is a Bitcoin halving event in which the currency’s miner payouts are cut in half (the miner payout will be decreased to 3.125 BTC). Given that halving helps to reduce supply, this occurrence is widely seen as being favourable for Bitcoin’s price. In the past, halving has been viewed as a highly positive sign for boosting Bitcoin’s price.
Therefore, if we carefully examine the statistics, previous Bitcoin halving events have been successful in establishing long-term bullish drivers for Bitcoin’s price. The deflationary tendency of Bitcoin is closely related to the halving of its supply, which drives up the price of BTC.
The so-called “Bitcoin Whales” have also resumed their BTC holdings. The large Bitcoin whales are keeping between 1,000 and 10,000 BTC in their wallets, according to data from on-chain aggregator Santiment. This shows that investors have been holding up on BTC, which may be a hint of a recovery in the Bitcoin price.
A strong start to 2023 saw Bitcoin reverse the negative trend it had been experiencing since the end of 2022. It was $16,000 on January 1 and as of today, has increased by 63% to $27,152. On expectations that the Fed’s run of rate hikes was coming to an end and that inflation was slowing down, the price of bitcoin even reached $30,000 last month.
The goldilocks market regime that emerged in early 2023 is one of the main factors behind the current increase in the price of bitcoin. Since US inflation has decreased from a peak of 9.1% in June 2022 to 4.9%, the Fed has been able to gradually raise interest rates. Some even contend that the Fed has stopped raising rates. Rate cuts are anticipated by markets for 2023, boosting risk assets such as equities and crypto. Also, crypto benefitted during the US banking crisis as investors questioned the security of TradFi.
You should think about when to buy Bitcoin once you have an understanding of its value. Although the value is always fluctuating, it traditionally follows specific patterns. You don’t have to pay as much money during certain periods because Bitcoin’s value is at its lowest. When you buy during those times, you can save money regardless of how much or how little you wish to invest.
What Bitcoin strategy should Indian investors use in 2023?
What should Indian cryptocurrency investors do given the wide range of Bitcoin predictions? Given the current state of unpredictability, it may be prudent to closely monitor Bitcoin price movements rather than taking any action that could result in significant losses. Even Indian crypto industry professionals agree that investors should remain in a wait-and-watch attitude and that any subsequent steps must be carefully considered.
“Investor sentiment towards bitcoin remains mixed, reflecting caution in the face of rising interest rates and a strengthening US dollar. I have a strong conviction that Bitcoin will continue to be a well-liked investment option, and many businesses are still showing interest in the underlying technology. The future course of Bitcoin and other cryptocurrencies is difficult to forecast, as it is with any market. In the next months, it will be important to keep an eye on the effects of rising interest rates and inflation concerns.
Investors in cryptocurrencies should choose their investments wisely. According to their investing objectives, investors must develop an investment strategy. A predetermined weight must be assigned to cryptocurrencies as an asset class based on the investors’ investing goals and expected results. Investors should occasionally add little quantities rather than large sums of money to their cryptocurrency holdings in order to protect their capital base.
In 2023, Bitcoin could increase again if there are no macroeconomic headwinds. I also believe that before making a buy or sell decision, cryptocurrency traders and investors should do extensive study on the technical aspects and fundamentals of an asset. Investors can also protect themselves against market volatility by employing a systematic crypto investment plan (SCIP) strategy while investing in bitcoin.
There are many opinions and predictions about Bitcoin, some of which are bullish and some of which are gloomy. Where Bitcoin will go next can only be determined with time. Bitcoin has a significant capability for comebacks and is renowned for being robust. Several seasoned analysts have been predicting that the Bitcoin bubble will pop within the next decade. But the cryptocurrency’s poster boy is still a favourite among many people and has helped investors gain huge fortunes over time.