Bitcoin has been in a funk recently, but now could be a fantastic time to buy it at a 20% discount.
While Bitcoin (BTC 1.88%) is still up nearly 40% for the year, the past six months have been a source of much anxiety for crypto investors. After hitting a new all-time high of $73,750 in mid-March, Bitcoin drifted downward and then largely traded sideways during much of the summer. At a price of $58,500, Bitcoin now sits 20% below its all-time high.
But there’s no reason to give up on Bitcoin quite yet — not when there are several potential catalysts ahead in the final quarter of the year. In fact, there are three good reasons to buy Bitcoin before the calendar flips the page to 2025.
1. Return of Bitcoin ETF inflows
One of the major storylines surrounding Bitcoin this year has been the launch of the new spot Bitcoin ETFs. New investor inflows into these ETFs were extremely bullish for the first few months of the year, and that’s what propelled Bitcoin to a new all-time high in March.
But in recent weeks, momentum has cooled. In fact, during August, the new headline was the reversal of those ETF inflows, as investors sought to move their money out of Bitcoin.
Image source: Getty Images.
So the good news here is that the worst appears to be over for the spot Bitcoin ETFs. On Sept. 13, over $263 million flooded into them. That’s the highest daily total since July 22. Moreover, weekly inflows into the Bitcoin ETFs turned positive after a miserable two weeks when nearly $1 billion flowed out of them. So if you think that ETF inflows are turning positive again, that could be a very bullish sign for Bitcoin as we head into the final quarter of the year.
2. The Bitcoin halving
Thus far, the Bitcoin halving has admittedly been a big nothingburger. The halving, which took place on April 19, was supposed to send the price of Bitcoin soaring. That obviously hasn’t happened, so it’s understandable if many investors have given up on the halving entirely.
But if you examine previous Bitcoin halving cycles (in 2012, 2016, and 2020), there’s cause for optimism. For example, after the May 2020 halving, it took nearly five months for the price of Bitcoin to skyrocket in value. But Bitcoin finished the year with a bang, and went on to set a new all-time high in 2021.
Of course, past performance is no guarantee of future performance, but at least there’s a historical precedent in place. In a best-case scenario, the much-anticipated impact of the Bitcoin halving will start to kick in during the final months of the year, just like in the previous halving cycle.
3. The 2024 presidential election
For the first time ever, Bitcoin has emerged as a legitimate campaign issue. In the run-up to the November presidential election, former president Donald Trump has positioned himself as the pro-Bitcoin candidate, and is generally viewed as someone who will support Bitcoin once he’s in office.
For example, Trump has said that he wants to support the Bitcoin mining industry within the U.S. He has talked about creating a strategic national reserve for Bitcoin, as well as a potential role for Bitcoin in reducing the nation’s $35 trillion debt. He has also pledged to remove current SEC head Gary Gensler, who is generally viewed as someone who is holding back the growth of Bitcoin ownership within the United States.
So if Trump is elected, it could be massively bullish for Bitcoin. Even if he is not elected, the political momentum has definitely shifted in Bitcoin’s favor.
Right now, the U.S. presidential race is too close to call, which might be why many investors remain on the sidelines. But definitely keep your eye on this election, and how it could impact the long-run potential of Bitcoin.
Buy Bitcoin now at a discount
September has historically been one of the worst months of the year for Bitcoin, so don’t get too caught up in how the crypto performs over the next 30 days or so. There are a number of concerns about Bitcoin right now, and investors have become increasingly skittish about holding risky crypto assets. So I wouldn’t be surprised if Bitcoin dips even lower heading into October.
The good news is that there are three potential catalysts for Bitcoin lurking right around the corner. If you buy Bitcoin now, you’ll be getting the world’s most popular cryptocurrency at a nice 20% discount, right before it potentially soars in value heading into 2025.
