With the bankruptcy of well-established names such as Terra and FTX, the list of projects that can be purchased in the cryptocurrency market has decreased considerably. In particular, continued pressure from the SEC and Europe’s restrictive moves towards mining have even the biggest cryptos Bitcoin and Ethereum under fire. Finance firm Fool says there is only one cryptocurrency that can be bought in this environment.
According to the financial company, this cryptocurrency will survive despite all the negative conditions
2022 was a secret year for the cryptocurrency market. During the first 11 months of the year, the price of Bitcoin experienced a huge drop of 65%. When Terra seemed to have stabilized at $20,000 after the crash, FTX dealt the second blow. As a result, the leading crypto is currently trading at a 75% discount from the November 2021 ATH price. Still, it still remains relatively attractive compared to all other cryptocurrencies in the market today. Finance company Fool, in its latest post titled the only cryptocurrency to buy right now, explains all 4 reasons why Bitcoin is the ideal choice.
FTX bankruptcy
First and foremost, Bitcoin has not been directly caught in the current FTX bankruptcy. While FTX Token, Solana and Serum were wiped off the market, Bitcoin did not see its reputation tarnished apart from selling pressure. The leading crypto fell to the lowest level in the last two years after the events around FTX. But until now, investors have worked with the proposition that Bitcoin is not part of the house of cards in FTX.
Regulatory risks on the cryptocurrency market
Another critical factor for cryptocurrencies is regulatory pressures. Regulators like the SEC have so far agreed that Bitcoin is not a security. This means that Bitcoin is relatively free from future regulatory risks. But the SEC has signaled that it will go after Ethereum because it is a security. He has made it clear that Bitcoin will not be part of any direct regulatory enforcement action. The latest “everything is clean” signal comes from European government regulators who recently decided that Bitcoin is absolutely not a security.
Durability
Bitcoin is arguably the safest cryptocurrency on the market right now. He has been proving this since 2009. Both individuals and institutions continue to prefer Bitcoin as a store of value. Bitcoin is also a proven asset for its resilience to market crashes. It has proven that it can do this in sales in 2011 and beyond.
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High expectations for future price
The periods when Bitcoin took action for the bull market were always associated with halving dates. Halvings are cycles that occur every four years, during which Bitcoin’s mining rewards are halved. We have to wait until 2024 for the next halving. This means a catalyst and hope for the future price of Bitcoin.
In the previous three halvings, Bitcoin has followed a fairly predictable pattern. Its price gradually appreciated in the 15 months before the halving and then accelerated in the next 15 months. Given that the next one is scheduled for April 2024, we could start to see a recovery in Bitcoin prices as early as the first quarter of 2023, according to Fool analysts. This makes for a strong reason to buy Bitcoin today. Do not forget to take a look at the current technical analysis that we have compiled as Kriptokoin.com.
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