Bitcoin (CRYPTO: BTC), the globe’s largest cryptocurrency, has been one of the large headlines in 2024. Despite struggling earlier in the year, once falling below $40,000, the token didn’t remain down for long, faring much better in the high-gain-rate surroundings than many expected.

As worth rise declined and the prospect of lower gain rates began to materialize, Bitcoin joined tech and growth stocks and rallied, breaking away from the rest of the crypto sector.

Once President-elect Donald Trump won on election night, Bitcoin and the rest of the crypto sector soared. Since Nov. 5, Bitcoin is up almost 50% and has surged history $101,000. Should you buy Bitcoin below $115,000? Let’s investigate.

Wider acceptance and regulatory clarity on the horizon

The crypto throng cozied up to Trump during the presidential campaign, and that schedule is now paying off. Trump has vowed to make the U.S. the “crypto capital of the globe.”

He’s already nominated several pro-crypto people to head key agencies that oversee matters in the sector. Gary Gensler, chair of the stocks and bonds and swap percentage (SEC) who has pursued several rules/policies that crypto proponents have disliked, plans to step down from the SEC once Trump takes office.

Key stakeholders like Coinbase‘s chief policy officer Faryar Shirzad are optimistic about the incoming U.S. Congress and ponder crypto legislation can shift through the House and Senate “fairly quickly.” There are two bills already on crypto advocates’ agenda, one seeking to construct an official set of rules for crypto, clarifying many of the gray areas that crypto companies have run into. Another invoice Shirza thinks Congress can pass would set up a framework for issuing licenses to stablecoin companies. Stablecoins are digital assets pegged to fiat currencies like the U.S. dollar or goods.

In addition to a favorable regulatory backdrop, Bitcoin has benefited from a growing consensus that the token can protect worth rise. Only 21 million Bitcoins can be mined, and the number of Bitcoins mined per block is cut in half about once every four years, making the globe’s largest cryptocurrency a scarce property similar to gold. Most of these 21 million tokens have already been mined.

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Bitcoin Supply data by YCharts

Recently, Federal safety net Chair Jerome Powell likened Bitcoin to digital gold in arguably one of the token’s strongest endorsements. BlackRock, the globe’s largest property manager, recently issued a update suggesting that investors can allocate up to 2% of a multi-property holdings in Bitcoin. However, the update noted that investors should be aware of the broader risks of Bitcoin including volatility and the possibility it may not gain broader adoption as many suspect.

Should you buy Bitcoin under $115,000?

Bitcoin has a lot going for it correct now, including a regulatory backdrop under the incoming Trump administration that will likely be the most favorable ever for crypto. Plus, more and more experts and financial institutions view the token as a protect against worth rise and uncertainty, although Bitcoin has also benefited from a uncertainty-on surroundings. Whether this dynamic can continue remains to be seen.

I ponder Bitcoin is a excellent long-term property to have some exposure to. Its history is relatively short, but the property has stood the test of competition and survived, and even flourished in different gain rate environments. After such a large run, I recommend using dollar-expense averaging when buying Bitcoin, which involves investing a set amount of money over regular intervals. This will smooth out and generally lower your expense basis over period.

Bram Berkowitz has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY content associate offering financial information, analysis and commentary designed to assist people receive control of their financial lives. Its content is produced independently of USA TODAY.

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