With a market capitalization of over $112.6 billion, bitcoin is the largest cryptocurrency by a wide margin. It is more than five times bigger than the second-largest crypto, ethereum, and some market observers believe bitcoin is on the cusp of more growth.
Some crypto market observers believe the long-term outlook remains encouraging for the largest digital currency.
Among the myriad issues facing bitcoin and other cryptocurrencies is adoption. As in when cryptos will become more widely accepted and used for mainstream activities, such as basic payments and money transfers, on a larger scale.
Noted bitcoin bull Mike Novogratz “thinks the cryptocurrency hit bottom earlier this month. He predicts bitcoin will rally 30% by the end of the year. And in the first quarter of next year, ‘you’ll really start seeing it move,’” reports CNNMoney.
Momentum plays an important role in when to buy bitcoin, but what may be surprising is that buying the cryptocurrency after it has experienced big rallies can be a winning strategy.
Corporate Interest in Bitcoin
Earlier this month, it was reported that Morgan Stanley is considering offering bitcoin derivatives trading to some clients, marking the latest news pertaining to a big-name company expressing interest in the digital currency space.
Derivatives help increase liquidity and improve markets for an asset category by allowing investors to bet on ups and downs of an asset, evening allowing individuals to adopt market-neutral strategies.