Why am I buying Bitcoin in June

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While not everyone is a fan of bitcoin, even its staunchest detractors would find it hard to deny its growing influence. An estimate from CryptoSlate envisions the cryptocurrency industry enjoying a similar adoption curve to the internet and mobile phones, which in theory would potentially give it 1.2 billion users by 2025. And of course, Bitcoin was the first crypto of all and remains the most popular.

Still, there will naturally be bumps in the road to widespread acceptance of crypto. Even though the whole month of May was one of those bumps, true Bitcoin enthusiasts won’t be deterred from preparing for a “June moon” crypto return.

Bitcoin’s Drop Wasn’t Necessarily About Bitcoin

Some traders may be hesitant to buy Bitcoin in June as it experienced its first monthly decline of 2023 in May. Anyone harboring fantasies of Bitcoin breaking above $30,000 last month was undoubtedly disappointed as the token lost 4% of its value.

However, even if the fallout from the FTX collapse may have lingered into May, the main culprit behind Bitcoin’s price retracement was, most likely, the general unease in the financial market over macro-level uncertainty. Between the looming deadline of the debt ceiling agreement and recession-related anxiety based on 10 consecutive hikes in federal funds interest rates since March of last year, investors had no shortage of excuses to get rid of their high-risk holdings – and crypto is certainly one of the riskiest assets. Classes.

Also, as the old saying goes, trees don’t grow straight up to the heavens. After surging from $16,600 in early January to $29,000 in late April, it was not only understandable, but actually healthy for Bitcoin to return 4% of its gains in a month.

Adoption will be key to Bitcoin’s future

There’s no guarantee that Bitcoin will zoom in June, but the drop in May means you can start a position or add to an existing one while Bitcoin takes a breather. In the long run, you might end up regretting not buying Bitcoin this summer as the adoption curve could steepen quickly before 2023 is in the rearview mirror.

To peer into what the future of cryptocurrency in the United States might be like, I invite you to look beyond our borders. In Laos, for example, the government openly supports a digital transformation strategy that includes blockchain. Meanwhile, a senior Indian central bank official urged that country’s bank managers to “embrace innovative technologies such as AI and blockchain.”

Additionally, the European Union recently took a huge step forward in codifying cryptocurrency regulations by passing the Crypto-Asset Markets (MiCA) legislation. The rules specified under the MiCA should, if properly implemented, provide increased transparency to crypto transactions while helping concerns raised by the FTX debacle.

Going back to the United States, a March CoinTelegraph article quoted former White House chief of staff Mick Mulvaney as saying he expects Congress to deliver “meaningful blockchain legislation/ crypto”, maybe even this year. his knowledge as a government insider, though I suspect the wheels of progress will continue to turn slowly on Capitol Hill.

At least US cryptocurrency miners have managed to avoid a proposed large excise tax. The proposed White House debt ceiling agreement included a crypto tax, but that was not included in the final bill. So, for now, progress in US cryptocurrency regulation may just mean not making things worse for the market. This is good, because Bitcoin is a global asset. Even if the United States lags in crypto acceptance through 2023, other countries can pick up the slack and give blockchain the respect it deserves.

David Moadel has no position in the stocks mentioned. The Motley Fool has positions and recommends Bitcoin. The Motley Fool has a disclosure policy.

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