Bitcoin (BTC) price reached a new 1-year high on June 24, 2023, surging to $26,434. This milestone is the highest price BTC has achieved since July 2022. Several key factors have contributed to this rally, including the increasing adoption by institutional investors, rising demand from retail investors, and positive regulatory developments.
However, it is essential to consider the risks associated with investing in cryptocurrencies.
Growing Institutional Adoption
Institutional adoption has played a significant role in driving BTC price to new heights. Prominent financial institutions like MicroStrategy, Tesla, and BlackRock have made substantial investments in BTC, enhancing its legitimacy and appeal to mainstream investors. For instance, MicroStrategy allocated over $4 billion to BTC, Tesla holds over 43,000 BTC, and BlackRock has launched a BTC ETF. These institutional investments have raised the profile of BTC and made it more accessible to a wider investor base.
Increased Demand from Retail Investors
BTC has also experienced increased demand from retail investors, individuals who invest in BTC for personal accounts. These investors are enticed by the potential for high returns and perceive BTC as a store of value. Additionally, the rising cost of living has motivated retail investors to seek alternative investments to safeguard their wealth. Many consider BTC as a hedge against inflation and economic risks, driving its popularity among retail investors.
Positive Regulatory Developments
Positive regulatory developments have contributed to the upward trajectory of BTC price. Several countries have taken steps to regulate the cryptocurrency market, reducing uncertainty and bolstering investor confidence. Notably, the United States Securities and Exchange Commission (SEC) has approved multiple BTC ETFs, simplifying investors’ access to BTC through conventional investment vehicles.
Potential Buy Zones in Case of Correction
a. $23,000-$24,000 Range: If BTC undergoes a correction, a potential buy zone could be within the $23,000-$24,000 range. This level has historically provided support during previous corrections. Consequently, a price drop to this range might present an opportune moment to purchase BTC.
b. $20,000-$21,000 Range: Another possible buy zone is around the $20,000-$21,000 range. During the previous bear market, BTC bottomed out at this level. Although a significant correction, this range could be an attractive entry point for long-term investors.
How to buy bitcoin on etoro?
Sure, here are the steps on how to buy Bitcoin on eToro:
- Create an eToro account. You can do this by visiting the eToro website and clicking on the “Create Account” button. You will need to provide some basic information, such as your name, email address, and password.
- Verify your account. Once you have created your account, you will need to verify your identity. This is a standard procedure for most cryptocurrency exchanges. You can verify your identity by uploading a copy of your government-issued ID and a recent utility bill.
- Deposit funds. You will need to deposit funds into your eToro account before you can buy Bitcoin. You can deposit funds using a variety of methods, including credit card, debit card, bank transfer, and PayPal.
- Search for Bitcoin. Once you have deposited funds into your account, you can search for Bitcoin. To do this, simply type “Bitcoin” into the search bar.
- Buy Bitcoin. Once you have found Bitcoin, you can buy it by clicking on the “Trade” button. You will need to specify how much Bitcoin you want to buy and at what price.
Here are some additional tips for buying Bitcoin on eToro:
- Use a limit order. A limit order allows you to buy Bitcoin at a specific price. This can be helpful if you are trying to buy Bitcoin at a certain price.
- Use a stop-loss order. A stop-loss order allows you to sell Bitcoin if the price falls below a certain level. This can help you to limit your losses if the price of Bitcoin falls.
- Do your research. Before you buy Bitcoin, it is important to do your research and understand the risks involved. You should also understand the fees that eToro charges for buying and selling Bitcoin.
Overall, Bitcoin’s recent price surge to a 1-year high can be attributed to growing institutional adoption, increased demand from retail investors, and positive regulatory developments. Nevertheless, it is crucial to acknowledge the risks inherent in cryptocurrency investments and only invest funds that can be comfortably withstood in case of loss. Factors like volatility and regulatory uncertainty should be carefully considered.
