In his latest statements, the analyst at US-based financial firm The Motley Fool drew attention to the two cryptocurrencies and pointed out that “today” is available for purchase. In particular, analyst RJ Fulton notes the importance of regulatory concerns. Here are the details…
Cryptocurrencies have gone through a tough time
Before the recent spike in prices, early March was a tough time for crypto. Numerous lawsuits have been filed against crypto companies, and fears of impending regulation have increased as investors prepare for the worst. Since then, widespread regulatory talk seems to have cooled as the recent banking debacle took center stage. But there is still plenty of reason to believe that crypto regulation will come to the US, and investors need to make sure they are prepared when this day comes. What matters is not whether it happened, but when.
Due to the complexity and vastness of the cryptocurrency asset class, legislators have had a hard time enforcing any comprehensive regulation. Even so, past comments from key officials shed light on their possible course of action, and the issues boil down to one thing: Is crypto a commodity or a security? To answer this polarizing question, lawmakers often use the test known as the Howey test to determine whether an asset is a security. The Howey test, named after a 1946 Supreme Court case, analyzes an asset in four ways to determine whether it is a security. The Howey test says that assets are considered securities if money is invested in a joint venture in anticipation of profits from the efforts of others.
Bitcoin and Ethereum stand out
If legislators consider most crypto to be a security, that means the whole landscape will change dramatically. Just like public companies offering stocks, cryptocurrencies that are considered securities must follow rules enforced by the US Registration and Securities and Exchange Commission (SEC). This will eventually lead to tighter reporting to ensure cryptocurrencies meet transparency standards. It will also create more barriers and ultimately create a less than ideal environment for price appreciation.
Conversely, if a cryptocurrency fails the Howey test and is considered a commodity, the amount of possible regulation is significantly reduced as commodities are not held to the same standard as securities. With this in mind, it is crucial for investors to tailor their portfolios to prioritize cryptocurrencies that are most likely to be considered commodities, as this will ensure the least disruption. According to the analyst, two options stand out when viewed using this approach: Bitcoin and Ethereum.
Bitcoin also has halving on the horizon
Another important issue that the analyst drew attention to especially for Bitcoin was the halving process. cryptocoin.com As we reported, halvings are unique to Bitcoin and are physically tied to its code, so the rate at which new coins enter circulation decreases roughly every four years. The primary way Bitcoins are created is in the form of a reward given to miners who successfully mine the next block. Initially, the block reward was 50 Bitcoin. However, as time went on this dropped to just 6.25 and around May 2024 the block reward will be just 3,125 Bitcoin. The analyst uses the following statements:
Surprisingly, when we graph Bitcoin’s price and superimpose the dates of all previous halvings, a clear trend begins to emerge – Bitcoin has tended to bottom out in the past roughly a year and a half before the next halving. Since halvings are immutable, we can almost certainly predict that the next halving will occur in May 2024. Since the next halving is in about 15 months, it offers an opportunity to buy Bitcoin at a significantly discounted price.
In addition, the analyst points out that BTC reached an all-time high a year and a half after the halving. “If it’s the same this time around, November 2025 may be a date that investors should keep an eye on,” he adds. Time will tell if this cycle between halvings will continue in the same way as the others, but there is another metric. According to the analyst, Bitcoin has proven to be one of the most lucrative times to buy, when it has lost more than 65 percent. More than 60 percent has reported multiple losses in its history, and it has even lost more than 80% of its value three times. In retrospect, it’s clear that those who bought Bitcoin after drastic drops like this were the ones who benefited the most when prices regained momentum.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your own research and due diligence before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.