When to buy cryptos

We all wonder when to buy cryptos and even more so when to buy which cryptos.

Evolution of Bitcoin prices

The crypto market is divided into a strongly bullish period and a bearish period, like other markets, but for crypto, these cycles are very pronounced.

There is a first peak in December 2013, it is small on the graph but at the time Bitcoin went from $100 to $1000.

then a drop with a low point at $220 in February 2015, which is higher than the previous low point.

Then a strong rise in 2017/2018 with a peak at $19,400 followed by a decline.

And a recovery with a high point at $68,513 in November 2021, followed by a fall.

According to the charts, we have been experiencing an upward trend since the beginning of 2023.

The halving

To avoid inflation, the number of bitcoins is limited to 21 million.

Bitcoin is operated by miners who validate transactions, and regularly, mining rewards are halved in order to stay within the limit of 21 million while ensuring that miners can always be paid. This is called "halving".

The previous halvings took place on November 28, 2012, July 9, 2016, May 11, 2020, and the next one will take place on April 24, 2024.

The halving and the price of Bitcoin

If we compare the halving dates and the price of Bitcoin, we can see that historically, the halving is preceded and especially followed by an increase in the price of Bitcoin.

There is an economic logic to this, as the reward in Bitcoin is halved and the dollar is inflationary, it is logical that the mining remuneration in Bitcoin measured in dollars increases.

And then, there may be an aspect of self-fulfilling prophecy, where crypto investors believe in the rise, buy, and then the price goes up.

Other cryptos

Historically, Bitcoin initiates the rise and is followed by other cryptos, this is called the "alt season".

This can be seen in macro cycles but also in shorter cycles.

Summary: when to buy cryptos

Obviously, we cannot be sure that these same cycles will repeat indefinitely. However, our recommendation is to buy regularly and diversify by slightly increasing the amount when everyone announces the end of cryptos and slowing down when everyone talks about cryptos with excitement.