The cryptocurrency market hangs on a precipice. Recent volatility has shaken participants. As a growing number of regulators scrutinize the crypto industry, investors, once again, look to Bitcoin (BTC) for answers.
In other words, not much has changed. The market is, of course, notorious for its temperamental mood swings. The potential for governments to regulate or even ban the use of crypto seems — to some extent — to have already been priced in.
Indeed, Bitcoin seems to have simply shrugged off the latest market fear, uncertainty and doubt (FUD). Still, new problems appear on the horizon as the market still tries to recover from the depegging of Terra and a general lack of interest from the casual investor.
For experienced traders, the outlook for the coin's immediate future may seem less secure than it used to. But with incredible gains still being promised by a growing number of online enthusiasts, serious investors are asking an important question: is it too late to buy Bitcoin?
Bitcoin’s Outlook in 2023
Bitcoin has been struggling along with every other cryptocurrency since the depegging of Terra. Throughout the year, Bitcoin has struggled to get back to around $40,000, meaning that all those calls for the token to reach $100,000 have died off in favor of buying at the dip or taking short-term positions.
One of the arguments against Bitcoin concerns its dominance, a measure of Bitcoin’s share of the entire crypto market. Bitcoin dominance has fallen dramatically this year as altcoins like Ethereum (ETH) and Cardano (ADA) lead participation in the space. Nevertheless, the original blockchain project still holds tremendous influence on the market as a whole. With a faltering market cap, Bitcoin remains the face of this nascent industry.
Bitcoin Market Capitalization
When looking into Bitcoin’s potential, many traders find it more useful to study the coin's market cap rather than its price alone. By considering the supply of a coin, along with its price, the market cap of a cryptocurrency can give investors a more accurate picture of what to expect going forward. Bitcoin’s market cap is absolutely stunning.
Taking up more than 40% of the entire cryptocurrency market, Bitcoin’s market capitalization topped $1 trillion at its peak. While the price of the coin has tempered, many expected Bitcoin’s market cap to exceed that of gold in the coming years.
Gold’s market cap currently stands over in the trillions. In order for Bitcoin to overtake the precious metal, it will need more than a flurry of increased participation. The price of a single coin will need to reach more than $500,000 to equal gold's current valuation.
Is it Too Late to Buy Bitcoin in 2023?
Predicting movements in the cryptocurrency market is a difficult process. In order to form a solid investment strategy, it’s important to look at the possible bull and bear cases being made for and against Bitcoin’s current price. The following explanations look deeper into differing scenarios for the coin’s future:
Why it Might Be Too Late to Buy Bitcoin
Depending on your expectation for returns, it may already be too late to buy Bitcoin. The chances for the most popular cryptocurrency to double or triple yet again this year diminish significantly as each day passes, especially as newer and more innovative cryptocurrencies exhibit real near-term potential.
As Bitcoin’s development stalls, smart contract platforms with usable decentralized apps (dApps) have increased participation in the market. With decentralized finance (DeFi) leading the way, the future of cryptocurrency may be firmly rooted in the altcoin market.
Why It’s Not Too Late to Buy Bitcoin
Bitcoin has proven its skeptics wrong many times. Many savvy investors are eyeing a real-time opportunity when studying its current charts. With increased institutional interest taking place in the cryptocurrency market generally — and in Bitcoin, specifically — the potential for future gains may lie front and center before willing participants.
While the current price trend is somewhat unclear, Bitcoin’s long-term future is likely secured by its size alone. Whether or not the price rises or dips this year, it would be foolish to bet against the world’s largest cryptocurrency going forward.
How to Buy Bitcoin
If you’re ready to get in on the action, buying Bitcoin has become a fairly simple process. Typically you’ll just need to sign up for an exchange, connect your account and click the ‘buy’ button displayed next to your chosen cryptocurrency.
Of course, it’s all easier said than done. You’ll need a state-issued ID and a way to upload it to the exchange in order to complete the Know Your Customer (KYC) process. Also, keep your smart phone charged — you may have to take a selfie for identity verification purposes.
Get ready to exercise some patience. When connecting your bank account, you may need to wait a few days before you can trade. The ACH process for secure transfers can vary in length, depending on your institution’s policies.
As an alternative to the run-around, some experienced traders have found great benefits by using a decentralized exchange (DEX). In any case, with your account funded, you’re ready to trade.
Best Cryptocurrency Exchanges for Bitcoin
If you’re looking for an exchange to buy Bitcoin, you’re likely to be presented with a growing number of options. Choosing between them can be difficult. But it doesn’t have to be that way. A quick look at the most important features of an exchange can give you a quick boost of confidence before placing that 1st order.
The most important features of any exchange are its security and transparency. When considering these specific traits, Coinbase (NASDAQ: COIN), Crypto.com and eToro have the best platforms for buying Bitcoin.
Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
Cryptocurrency Market Prices
Bitcoin is holding in its current range and looking to break past considerable resistance. At the same time, altcoins like Solana (SOL) and Algorand (ALGO) continue to outperform the market.
Is Bitcoin a Good Investment in 2023?
As cryptocurrency goes, Bitcoin remains a solid investment and a strategic portion of most balanced portfolios. After all, the undisputed king of crypto has arguably, on its own, proven the entire market viable.
Still, participating in the cryptocurrency market comes with a number of inherent risks. The decision to buy Bitcoin can be a highly personal one. Having faith in your own investment strategy is the key to successfully trading cryptocurrency.
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About Micah C. Miracle
Before writing for Benzinga, Micah’s work was featured on a number of ranking news sites, including The Merkle, Global Coin Report and the Crypto Gazette.