How to Identify the Best Time to Buy Bitcoin! Plus, Insights on Its Future Potential

Bitcoin, one of the most prominent cryptocurrencies, is growing in popularity among investors and expanding its market size year by year. However, because Bitcoin’s price is constantly fluctuating, it can be difficult to pinpoint the right time to buy or sell.

To identify the optimal buying opportunity, it is essential to analyze the factors driving these price changes. In this article, we explain Bitcoin’s key characteristics and provide insights on the best timing for purchasing it.

When is the Best Time to Buy Bitcoin? Expert and Institutional Price Predictions

Before determining the right time to buy Bitcoin, it’s a good idea to check price predictions from notable figures, global financial institutions, and forecasting models to assess its future potential.

Here, we introduce five key price predictions:

• Goldman Sachs (U.S. Investment Bank)
• Peter Thiel (Co-founder of PayPal)
• Robert Kiyosaki (Author of Rich Dad Poor Dad)
• DigitalCoinPrice (Forecasting Model)

Goldman Sachs (U.S. Investment Bank) Prediction

Goldman Sachs, a major U.S. investment bank, announced that it is “realistic for Bitcoin to reach $100,000 per coin as a future alternative to gold.”

While gold is traditionally seen as an investment asset like stocks and bonds, Goldman Sachs predicts that Bitcoin will eventually take a share of gold’s market, driving its price even higher.

Peter Thiel (Co-founder of PayPal) Prediction

At the Bitcoin 2022 conference, Peter Thiel, the co-founder of PayPal, predicted that “Bitcoin’s value will increase by more than 100 times in the future.”

Thiel foresees that Bitcoin will become a more valuable financial asset than stocks.

Robert Kiyosaki (Author of Rich Dad Poor Dad) Prediction

Robert Kiyosaki, the author of the popular financial book Rich Dad Poor Dad, predicts that Bitcoin will exceed $500,000 by 2025.

As a successful investor in business, stocks, and real estate, and a globally recognized financial educator, Kiyosaki’s predictions are widely trusted and closely watched.

DigitalCoinPrice (Forecasting Model) Prediction

DigitalCoinPrice is a website that provides statistical information on cryptocurrency prices, trading volumes, and market evaluations.

Their forecasts predict that Bitcoin’s price will reach $90,000 by 2025 and exceed $150,000 in the next five years.

Understand Bitcoin’s Features and Price Trends Before Deciding When to Buy

When considering the best time to buy Bitcoin, it’s essential to understand its features and past price trends.

In this section, we’ll cover:

1. Bitcoin as the Most Valuable Cryptocurrency
2. Bitcoin’s Historical Price Trends

Bitcoin is the Most Valuable Cryptocurrency

As of October 2023, Bitcoin remains the most valuable cryptocurrency, having been launched in 2009.

Due to its high recognition and robust security, Bitcoin is widely accepted by individuals and businesses and is considered the pioneer of the cryptocurrency revolution.

Bitcoin is expected to continue playing a central role in the cryptocurrency market in the future.

Bitcoin’s Historical Price Trends

Since its inception in 2009, Bitcoin’s value has increased exponentially, though it has experienced several significant crashes along the way. Here are some of the major price surges and crashes

Bitcoin’s value has risen over time, experiencing repeated surges and crashes influenced by global events. There is still a strong possibility that its value will continue to increase in the future.

3 Key Times to Identify the Best Moment to Buy Bitcoin

Here are three optimal times to consider buying Bitcoin:

1. When Prices Have Crashed [Examples of Past Crashes]
2. When Positive News is Reported
3. During the Halving Event

By understanding these key points, you can better determine the right time to buy.

1. When Prices Have Crashed [Examples of Past Crashes]

Buying Bitcoin during a price crash can give you the opportunity to profit significantly when the price rebounds. Price crashes often occur due to the following events:

• A major company sells off its Bitcoin holdings.
• Stricter regulations on cryptocurrencies are introduced.
• A major cryptocurrency exchange collapses.

Purchasing Bitcoin during a crash allows you to capitalize on potential future price increases. Be sure to carefully identify these moments.

Example of a Past Crash

One of the most impactful crashes occurred in 2022.

In 2021, Bitcoin reached an all-time high of approximately $60,000 per BTC (about 7.4 million yen at the time). However, in 2022, events such as the Russian invasion of Ukraine and the collapse of the major exchange FTX led to a price drop to around $16,000 (about 2.2 million yen).

By October 2023, the price had recovered to approximately $28,000 (about 4 million yen), indicating that Bitcoin’s value remains resilient.

2. When Positive News is Reported

Positive news can also signal a good buying opportunity. Examples of such news include:

• A major company purchases Bitcoin.
• A major company starts accepting Bitcoin payments.
• Bitcoin is adopted as legal tender.

After positive news is reported, Bitcoin prices tend to rise. However, due to the rapid pace of price changes, the value may increase while you are still considering your purchase.

To avoid missing out on opportunities, stay updated by checking news sources and financial reports daily.

3. During the Halving Event

Another good time to buy Bitcoin is during the halving event.

To prevent inflation from devaluing Bitcoin, its supply is controlled through halving events, which occur periodically. During a halving event, the mining reward for verifying Bitcoin transactions is cut in half, reducing the rate at which new Bitcoin is created.

Historically, halving events often lead to price increases, making them profitable opportunities.

By understanding these key strategies, you can better determine the optimal time to buy Bitcoin and maximize your potential profits.

Cautions When Determining the Right Time to Buy Bitcoin

Before deciding when to buy Bitcoin, it’s essential to understand the following three key points to avoid significant losses:

1. High Volatility
2. Risk of Hacking
3. Susceptibility to Regulatory Changes

1. High Volatility

Bitcoin is a cryptocurrency with high price volatility. While this volatility offers the potential for large profits, it also increases the risk of significant losses.

For beginners, it’s advisable to start with a small investment and gradually increase the amount as you become more comfortable with price fluctuations.

2. Risk of Hacking

Cryptocurrencies are susceptible to hacking risks.

In the past, cryptocurrency exchanges have experienced hacking incidents where billions of yen worth of Bitcoin and Ethereum were stolen. Because cryptocurrencies are relatively new digital assets, security risks cannot be ignored.

To protect your assets, follow basic security measures such as enabling two-factor authentication and avoiding the use of public Wi-Fi.

3. Susceptibility to Regulatory Changes

Cryptocurrencies are often subject to regulations from governments and major platforms like Google and Twitter (now X). New regulations can lead to sudden price drops in Bitcoin’s value.

As cryptocurrencies are still a relatively new asset class, further regulatory tightening is expected in the future. When investing in Bitcoin or other cryptocurrencies, be aware of the potential for price fluctuations caused by regulatory changes.

By understanding these risks in advance, you can better manage your investments and reduce the chance of significant losses.

Bitcoin Has Strong Potential! 4 Key Factors for Deciding When to Buy

Understanding Bitcoin’s potential can help you make informed decisions about when to buy. Here are four key factors to consider:

1. Bitcoin Payments are Gradually Becoming More Widespread
2. More Countries are Adopting Bitcoin as Legal Tender
3. Regulations for Cryptocurrencies are Improving
4. Bitcoin is One of the Most Trusted Cryptocurrencies

Let’s explore each of these points in detail.

1. Bitcoin Payments are Gradually Becoming More Widespread

Bitcoin is increasingly being used not just for converting to fiat currencies like the yen, but also for making direct payments.

Major companies such as Starbucks, PayPal, and Coca-Cola have started accepting Bitcoin payments. As Bitcoin payment adoption grows, public trust in the currency will increase, positively influencing its market value. Continued expansion of Bitcoin payments is something to look forward to.

2. More Countries are Adopting Bitcoin as Legal Tender

Countries like El Salvador and the Central African Republic have adopted Bitcoin as legal tender.

However, since it has only been two years since Bitcoin was first adopted as a national currency, it is not yet considered a fully stable currency. Nevertheless, broader global adoption could lead to greater price stability and growth in the future.

3. Regulations for Cryptocurrencies are Improving

Laws and regulations governing cryptocurrencies are being established in various countries. Because cryptocurrencies are a relatively new asset class, regulatory frameworks initially struggled to keep pace.

Now, with regulatory progress, cryptocurrencies are expected to become more stable and valuable assets over time.

4. Bitcoin is One of the Most Trusted Cryptocurrencies

Bitcoin remains one of the most trusted cryptocurrencies. Despite experiencing multiple crashes, Bitcoin has consistently maintained its value.

Because of this resilience, Bitcoin is popular and trusted among investors for cryptocurrency investments.

By considering these four factors, you can better assess Bitcoin’s potential and make more informed decisions about when to buy.

3 Tips for Profiting from Bitcoin

When buying Bitcoin, it’s essential to know these three key tips to help you maximize your profits:

1. Diversify Risk with Long-Term Investment Plans
2. Hold Assets with Low Correlation to Bitcoin
3. Consider Short Selling During Crashes

Let’s explore each tip in detail.

1. Diversify Risk with Long-Term Investment Plans

Long-term investment strategies help reduce loss risks through the following two methods:

• Invest a fixed amount regularly (Dollar-Cost Averaging).
• Hold purchased cryptocurrencies for several years to decades (Long-Term Holding).

For example, if you had purchased Bitcoin in 2009 (the year it was launched) and held it until now, its value would have significantly increased. Additionally, if you regularly invested during this period, your profits would likely be even greater.

While short-term gains are appealing, beginners should focus on long-term, consistent investments when purchasing cryptocurrencies.

2. Hold Assets with Low Correlation to Bitcoin

Holding assets that move inversely to Bitcoin (i.e., assets that increase in value when Bitcoin falls) can help mitigate loss risks. Examples of such assets include:

• Stocks
• Bonds
• Gold

In August 2023, for instance, U.S. Treasury yields moved inversely to Bitcoin prices. Consider future market conditions when selecting assets to diversify your portfolio.

3. Consider Short Selling During Crashes

When Bitcoin’s value is dropping, you can profit through short selling (shorting).
* Short Selling: Selling an asset you do not own, then buying it back at a lower price to profit from the difference.

Example:

If Bitcoin is trading at 1,000 yen:

1. Short sell Bitcoin at 1,000 yen.
2. If the price falls to 700 yen, buy it back and make a 300 yen profit.

However, if the price rises instead of falling, you will incur a loss. Given the high volatility of cryptocurrencies, short selling can result in significant losses within a short time frame.

Note for Beginners:
Short selling is an advanced strategy. Beginners should start with the traditional approach of “buying low and selling high.”

By mastering these strategies, you can effectively manage risks and maximize your potential for profit.

Frequently Asked Questions About Bitcoin

Here are four common questions about Bitcoin:

1. Is It Too Late to Start Investing in Bitcoin Now?
2. When Is the Right Time to Sell Bitcoin?
3. Is a Drop or Crash in Bitcoin’s Price a Good Buying Opportunity?
4. If I Buy Bitcoin for 100,000 Yen, How Much Will It Be Worth in 10 Years?

Let’s address each question one by one before you decide to invest in Bitcoin.

1. Is It Too Late to Start Investing in Bitcoin Now?

No, it is not too late to start investing in Bitcoin. According to price predictions from major investment banks, well-known figures, and forecasting models, Bitcoin’s price is expected to continue rising in the future.

Additionally, with Bitcoin being adopted as a payment method and even legal tender by some companies and countries, further adoption could lead to price increases and stabilization. Therefore, investing in Bitcoin now is still considered a good opportunity.

2. When Is the Right Time to Sell Bitcoin?

There is no definitive answer for the perfect time to sell. However, potential opportunities include:

• During a price surge driven by positive news.
• When rebalancing your portfolio.

If you can identify good buying opportunities, you can apply similar principles to determine selling opportunities. The insights provided in this article can serve as a useful guide.

3. Is a Drop or Crash in Bitcoin’s Price a Good Buying Opportunity?

Yes, a price drop or crash can often be a good buying opportunity.

Buying Bitcoin during a market crash allows you to potentially profit when prices recover in the future. Keep an eye on market conditions and aim to buy during these dips to maximize your potential gains.

4. If I Buy Bitcoin for 100,000 Yen, How Much Will It Be Worth in 10 Years?

Let’s simulate how much a 100,000 yen investment in Bitcoin could be worth based on the following conditions:

• Exchange Rate: 1 USD = 150 yen
• 10 Years Ago (October 2013): 100,000 yen invested (1 BTC ≈ 13,000 yen)
• Current Price (October 2023): 1 BTC ≈ 4 million yen

Based on these conditions, a 100,000 yen investment in 2013 would be worth approximately 30.77 million yen in October 2023.

By understanding these common questions, you can make more informed decisions when investing in Bitcoin.

Identify the Best Time to Buy Bitcoin and Evaluate Its Future Potential

Bitcoin’s price fluctuates based on financial markets, political events, and statements from notable figures, making it impossible to predict future price movements with 100% accuracy. While perfect timing is unattainable, aim for investments that score 70–80 points rather than striving for perfection.

Bitcoin has strong potential and the expectation of future price increases, so it is not too late to start investing now. Use the buying opportunities discussed in this article as a guide and take the first step toward Bitcoin investment!