Is Now a Good Time to Buy Bitcoin? What History Tells Investors

In One Chart joined discussion · 2 hours ago

Bitcoin and Ether experienced declines as risk aversion spread to the crypto market following the worst $S&P 500 Index(.SPX.US)$ drop since 2022. Ether, the second-largest cryptocurrency, fell about 7%, while Bitcoin dropped around 3%. The downturn in equities, particularly in technology shares, affected investor sentiment globally.

New spot-Ether ETFs launched in the US, while the Grayscale Ethereum Trust converted to an ETF, leading to significant outflows and cautious sentiment. Market observers noted that the crypto market felt the impact of negative sentiment from US equities. However, the pressure on Ether following the ETF launches might ease if market conditions improve.

Read Here: Spot Ethereum ETFs Get Final Approval: Is a Second Bull Run on the Horizon?

However, cryptocurrency remains a hot topic in the 2024 US presidential election, with markets keenly anticipating former President Trump's speech at the Bitcoin 2024 conference in late July. As US political parties adopt more favorable stances toward Bitcoin, discussions about its potential as a "global reserve asset" are gaining traction.

Industry insiders, including Satoshi Action Fund co-founder Dennis Porter and BnkToTheFuture founder Simon Dixon, suggest Trump may announce Bitcoin as a strategic reserve asset for the US at the conference. Over the past month, Bitcoin has surged approximately 11%, outpacing global stock markets, which have seen gains of less than 2%. Historical data indicates that Bitcoin may still be at the early stages of this bull market cycle.