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Is Bitcoin Worth Buying with $10,000? Here Are 4 Reasons
4 Reasons Buy Bitcoin, Bitcoin’s price hit a new all-time high of nearly $73,800 on March 14, pulling back to about $67,800 as of this writing. Despite this, it’s still up more than 60% this year, suggesting that the “crypto winter” is finally ending. Here are four simple reasons why it’s smart to invest $10,000 in Bitcoin.
1. Declining Interest Rates
Bitcoin and many other cryptocurrencies tumbled in 2022 as rising rates drove investors away from speculative investments. However, the Federal Reserve is expected to cut rates two to three times this year as inflation cools off. As rates decline, investors will likely shift back towards higher-growth plays like cryptocurrencies, potentially driving Bitcoin’s price even higher.
2. The Growing Popularity of Bitcoin ETFs
The U.S. Securities and Exchange Commission (SEC) approved the market’s first 11 spot price Bitcoin ETFs in January, making it much easier to invest in Bitcoin. The total assets under management (AUM) for the six largest spot price Bitcoin ETFs currently stand at $60.8 billion. This figure is expected to continue rising as both retail and institutional investors increase their holdings add more shares to their portfolios.
3. Ethereum’s Regulatory Troubles
The price of Ether (ETH), the main token of the Ethereum network, rose over 50% this year. However, the SEC’s recent actions could potentially subject Ethereum to tighter government regulations than commodities. This reinforces the bullish thesis that Bitcoin is a stronger long-term play on the crypto market than Ethereum-based tokens.
4. The Next Bitcoin Halving
Every four years, the rewards for mining Bitcoin are cut in half, which usually generates headwinds for miners but boosts Bitcoin’s market price by reducing its available supply. The next halving is expected to occur this April. It could push Bitcoin’s price even higher, especially if it coincides with declining interest rates and rising institutional purchases.
Investing $10,000 in Bitcoin is not without risks, as its price can be volatile. However, if you can afford to hold onto your investment for a few years, it may be wise to consider buying Bitcoin today. The ETF approvals, upcoming halving, and other catalysts could draw in more investors and potentially drive Bitcoin’s price much higher this year.
