When Will Bitcoin Rally Again?

Bitcoin is ideal for rapid growth, but after trading rangebound for several months now, here’s what to look for ahead of another rally.

| More on:
Handwriting text writing Are You Ready For Tomorrow question. Concept meaning Preparation to the future Motivation Stand blackboard with white words behind blurry blue paper lobs woody floor.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Bitcoin made a lot of noise in 2020 as it was one of the best assets for investors to own. Lately, though, Bitcoin and the cryptocurrency industry as a whole have lost a lot of momentum. This has many investors wondering when Bitcoin will rally again.

To understand when it could rally, we need to understand why it rallied. And there are several reasons why Bitcoin, along with the entire cryptocurrency industry, rallied throughout 2020 and into 2021.

Part of the reason was down to all the currency that central banks created over the last year. That, combined with the improving technology of these cryptocurrencies, led to a massive revolution.

Even factors such as Elon Musk’s continuous tweeting helped give it momentum for a bit.

However, the industry has now lost that momentum, and many of the large cryptocurrencies have been trading rangebound for months.

Despite the loss of momentum recently and the fact that Bitcoin is trading roughly 50% off its all-time high, it remains more than 50% above its previous all-time high reached during the last massive rally.

So, although it’s still quite volatile and can see huge price swings, it’s still on a long-term uptrend.

Cryptocurrency and blockchain offer a tonne of potential, which is why many think this is a major revolution rather than just a short-term bubble.

So with that in mind, you may be wondering when to invest in the sector and when Bitcoin can rally again.

When will Bitcoin rally again?

When Bitcoin can rally again will all depend on the catalysts that can drive momentum in the industry. Looking forward, it’s hard to tell what that might be. Certain possibilities include further devaluing of the dollar, more impressive technological advances, or even if some well-known billionaire investors decide to invest in the industry.

The truth is it doesn’t matter when Bitcoin will rally, only whether it will again. Furthermore, it’s practically impossible to predict these events or catalysts ahead of time.

This is why you shouldn’t worry about short-term price fluctuations when deciding to buy a stock or even an asset like Bitcoin.

Instead, if you’re bullish on the industry long-term, I’d take a long-term position and then forget about it.

A top crypto stock to buy

Nowadays, there are several ways to gain exposure to the industry. You could, of course, buy a top cryptocurrency, such as Bitcoin, which is easily one of the best long-term investments.

In my view, though, even better than buying any single cryptocurrency is the leading financial services stock Galaxy Digital Holdings (TSX:GLXY).

Galaxy Digital is an exciting business and one of the best growth stocks to buy if you’re bullish on cryptocurrency.

The company has positioned itself well to benefit from the growing popularity of both cryptocurrency and blockchain technology.

Operating through several segments, Galaxy Digital offers several products and services such as asset management, prime brokerage services, a venture capital arm, and even its own Bitcoin mining business.

This is a great way to not only gain exposure to the industry for the long run but also to diversify your investment away from the performance of a single asset, such as Bitcoin.

As long as the industry continues to gain popularity among investors and institutions, Galaxy Digital should benefit.

So if you’re bullish on cryptocurrency and looking for a high-quality investment, Galaxy Digital is one of the top stocks to consider today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Investing

A stock price graph showing declines
Dividend Stocks

2 Stocks I Own and Will Buy More of if the Stock Market Crashes

Looking for some stocks to buy in the event the stock market crashes? Here are two options I own and…

Read more »

Man data analyze
Dividend Stocks

3 Inflation-Resistant TSX Stocks to Buy Right Now

These inflation fighters will see you through this trying time and could double your portfolio in the next decade!

Read more »

Going against the grain
Energy Stocks

RRSP Investors: 1 Top Contrarian Stock to Buy Now

Here's why this top Canadian energy stock with a high dividend yield looks undervalued and good to buy now for…

Read more »


3 Growth Stocks That Could Double Your Investments in the Next 3 Years

Given their growth prospects, I am bullish on the following three growth stocks.

Read more »

Canadian Dollars
Dividend Stocks

Passive-Income Investing: How You Can Churn Out $445/Month for the Rest of 2022

Canadians crushed by inflation should look to make big passive income in 2022 with stocks like Freehold Royalties Ltd. (TSX:FRU)…

Read more »

calculate and analyze stock
Dividend Stocks

2 TSX Stocks to Buy With Dividends Yielding More Than 3%

Are you looking for some great income stocks that can provide growth, too? Here are two stellar TSX stocks to…

Read more »

edit Balloon shaped as a heart
Dividend Stocks

Dividend Lovers: 3 U.S. Stocks You Haven’t Heard About

Don't just stick to Canadian companies for a great dividend, consider these U.S. stocks you probably haven't even heard of.

Read more »

Happy diverse people together in the park

Canadians: 3 Top Growth Stocks That Could Make You Rich This Decade

Canadian investors should be eager to snatch up promising growth stocks like goeasy Ltd. (TSX:GSY) in the final weeks of…

Read more »