From Nasdaq, Inc.:

Bitcoin was up over 150% in 2023, reaching $45,000. Anticipation is growing over the upcoming Bitcoin halving event—but there are risks. One risk involves the SEC delaying approval of a spot Bitcoin ETF until there’s a comprehensive regulatory framework in the US. Another risk involves the sudden influx of institutional investors, which could “completely destroy Bitcoin” according to some experts.

Cathie Wood of Ark Invest suggests that the price of Bitcoin might decline in the short term with the entry of institutional investors, due to a market phenomenon called “buy the rumor, sell the news.” As institutional investors prepare to allocate significant portions of their portfolios to Bitcoin, some fear that this could transform Bitcoin from a vibrant blockchain with multiple use cases into a lifeless blockchain.

The decision of whether or not to invest in Bitcoin is slightly more nuanced than one might assume. It’s up to the investor to decide if Bitcoin is the right investment, and if so, to choose the best way to invest moving forward. Heading into 2024, the primary choice is between spot Bitcoin and a spot Bitcoin ETF. This shift in the crypto market suggests the need for careful consideration before investing in Bitcoin.



Read more: 2 Major Risks Investors Should Know Before Buying Bitcoin in 2024