Bitcoin(CRYPTO: BTC) has had a strong start in 2024, but much of its growth happened in the early months. Since then, the pace has cooled off a bit.
While this may seem underwhelming, the quiet period could actually make this an opportune time to buy. Here are three reasons Bitcoin is still a compelling buy today -- not only for its near-term potential, but also for its unmatched long-term value.
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1. Bitcoin spot ETFs are gaining momentum again
One of the most promising signs of potential for Bitcoin in the near term is the resurgence of spot Bitcoin ETFs. While this might not guarantee Bitcoin's next big move, spot ETFs have been a significant catalyst for price increases. During the early months of 2024, they were largely responsible for Bitcoin's initial jump, at one point purchasing over 10 times the daily production rate of Bitcoin. This level of buying generated fresh demand and drove Bitcoin's price to all-time highs.
The summer months saw a plateau in ETF activity, but interest has picked up again. BlackRock's iShare Bitcoin Trust (NASDAQ: IBIT), for example, recorded $1.1 billion in new cash inflows last week. That's its best stretch since March 2024, and enough to push into territory that makes it the most successful ETF in the last four years when measured by assets under management.
If this trend in ETF buying activity continues, it could provide a strong tailwind for Bitcoin's price and set the stage for Bitcoin's next leg up, as we saw at the beginning of the year.
2. Post-halving performance holds promise
In April 2024, Bitcoin experienced its most recent halving. Bitcoin halvings occur roughly every four years, reducing the rate at which new Bitcoin is produced by half. This reduction in supply typically triggers a supply shock that eventually drives up demand and, in turn, Bitcoin's price. Historically, years that contain a halving event tend to bring significant price appreciation, with an average gain of around 100%.
But it's the post-halving years that tend to produce the most impressive results. The full effects of the halving often take time to materialize as the market adjusts to the new, limited supply. On average, Bitcoin has seen a 350% gain during the year following each halving, making 2025 a particularly high-potential year. This historical trend, coupled with increased demand from spot Bitcoin ETFs, could set Bitcoin up for potentially impressive gains in the coming months. For investors looking to buy Bitcoin, 2024's post-halving setup could be the ideal entry point for capturing these future gains.
3. Bitcoin's core value proposition remains intact
While short-term factors may offer optimism, it's Bitcoin's long-term potential that truly stands out for investors.
At its core, Bitcoin is designed to be an inflation-resistant, decentralized, and finite asset -- qualities that hold particular appeal in today's economic climate. As governments navigate unprecedented debt and inflation appears likely to persist, Bitcoin's capped supply of 21 million coins offers a compelling alternative and means to invest outside traditional finance.
From this perspective, there's arguably no "bad time" to buy Bitcoin. While certain times (like during bear market lows) have historically provided better entry points, Bitcoin's unique attributes make it a valuable asset in nearly any market cycle. Consider that no Bitcoin holder who has kept their investment for at least four years or more has ever realized a loss. That underscores the cryptocurrency's resilience.
For those who see Bitcoin as transformative to the financial landscape, it presents a rare value proposition. Growing demand, driven by a mix of institutional adoption, macroeconomic trends, and technological developments, points toward a clear, upward trajectory. At today's price of just under $70,000, Bitcoin could very well appear undervalued in retrospect if it continues on its current trajectory.
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RJ Fulton has positions in Bitcoin and iShares Bitcoin Trust. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
