From Nasdaq,output:

The cryptocurrency market climbed about 110% in 2023, driving the price of Bitcoin up more than 150% during the year. Bitcoin alone accounts for 50% of the entire cryptocurrency market, with a market capitalization of about $845 billion, due to its status as a first mover. Basic economics suggests that the price of Bitcoin will rise alongside demand when supply is held constant.

The pending approval of several spot Bitcoin ETFs could boost demand for Bitcoin, specifically applications from BlackRock and Fidelity. The U.S. Securities and Exchange Commission (SEC) has rejected such proposals in years past, but a federal appeals court recently raised expectations that some spot Bitcoin ETFs will be approved in early 2024. According to some financial experts, the approval of spot Bitcoin ETFs could attract more funds from retail and institutional investors.

The next Bitcoin halving event in April 2024 will reduce selling pressure, and institutional investments into Bitcoin could push the price of Bitcoin to $330,000, implying 685% upside from its current price. Ark Invest published a valuation model that posits a per Bitcoin price of $1.48 million by 2030, implying more than 3,400% upside from its current price.

Readers interested in investing in Bitcoin should remember that the cryptocurrency market is volatile and rife with regulatory uncertainty. However, financial experts recommend adding Bitcoin to investment portfolios at its current price, with a 2-5% allocation. Alternatively, risk-averse investors should steer clear of cryptocurrency investments.

The Motley Fool Stock Advisor analyst team identified 10 stocks as best options for investors, with forecasts of potential monster returns in the coming years. This list did not include Bitcoin. The Stock Advisor service has outperformed the S&P 500 since 2002.

The views and opinions expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.



Read more: 1 No-Brainer Cryptocurrency to Buy Before It Soars 685% or More, According to Certain Wall Street Professionals