Over the past month, cryptocurrency prices have risen significantly. Since the beginning of 2024, Bitcoin is up nearly 45% and has driven the entire market upwards. This consistent positive price action has spurred some long-needed enthusiasm in traders and investors.
As a result, many are seeking the best moment to swap BTC to USDT and finally take some profits following the stark crypto winter. To help you with this, we’ll give you an overview of USDT that should allow you to understand why stablecoins can be a great way to temporarily exit the market.
Moreover, we will delve into the latest updates in the Bitcoin ecosystem, and analyze some price predictions around the internet to see whether selling Bitcoin is a good idea at this point.
USDT Overview
Source: youtube.com
USDT or Tether is a stablecoin pegged to the US Dollar. This means that its value is always equal to 1 for 1 in USD. To be more precise, every USDT minted on any of the networks where the protocol is deployed is backed by cash (or equivalent) reserves. While some doubt that all of the USDT supply is fully backed, the cryptocurrency hasn’t faltered in its 8 years of existence.
Released in 2014 by Tether, this stablecoin has grown into a vital element of the industry. It’s currently the #3 crypto by market cap and is widely used on centralized and decentralized exchanges for trading, yields, and liquidity providing.
Factors that affect the value of BTC and USDT
Several factors can impact the value of Bitcoin (BTC) and Tether (USDT) in the crypto market. Firstly, the overall market sentiment and demand for cryptocurrencies can influence the value of both BTC and USDT. News events, regulatory changes, and investor sentiment can all impact demand and supply of these coins.
Secondly, the underlying technology and network security of BTC and USDT can affect their value. Bitcoin’s decentralized network, for example, provides a level of trust and security to its users. On the other hand, USDT’s peg to the US dollar provides a level of stability and predictability.
Finally, competition from other cryptocurrencies and stablecoins, as well as advancements in technology and innovation, can also affect the value of BTC and USDT. As the crypto market continues to evolve, it’s important for investors to keep an eye on these factors and make informed decisions about their investments.
Why Invest in Stablecoins?
Source: youtube.com
Stablecoins like Tether have multiple advantages for cryptocurrency users. Their main feature is that their value isn’t volatile, in contrast to the rest of the assets in the industry. Consequently:
- They are a great way to temporarily exit the market and shield yourself from volatility.
- They allow you to take profits without having to proceed to expensive and taxable crypto-to-fiat conversions.
- They are a safe gateway to DeFi, where you can provide liquidity to various protocols, with little-to-no risk.
- They are convenient for cross-border payments or work contracts as they conserve the low fees and speed of other cryptos, but with no volatility.
All in all, assets like USDT are a convenient and relatively safe way to protect your crypto portfolio.
BTC Latest Updates
Recently, there have been several updates in the world of Bitcoin. Firstly, the much-anticipated Taproot upgrade was activated in November 2021. This upgrade aims to improve Bitcoin’s scalability, privacy, and smart contract capabilities. It’s expected to further solidify Bitcoin’s position as a leading store of value and a preferred asset for institutional investors.
Additionally, Bitcoin’s adoption as a payment method has continued to grow, with several large companies such as PayPal, Visa, and Tesla now accepting BTC as a form of payment. This has helped to increase BTC’s mainstream appeal and legitimacy.
Furthermore, the ongoing global economic uncertainty and inflation concerns have boosted demand for Bitcoin as a hedge against inflation. This has been reflected in the increasing number of institutional investors, such as hedge funds and corporations, adding BTC to their investment portfolios.
The Lightning Network, which aims to improve the scalability and speed of Bitcoin transactions, has also been gaining momentum. This network enables faster and cheaper transactions, making Bitcoin more accessible and convenient for everyday use.
Overall, Bitcoin continues to dominate the crypto market and attract mainstream adoption and institutional investment. With ongoing updates and developments, Bitcoin’s position as a leading cryptocurrency and store of value looks set to continue in the coming years.
BTC Price Analysis
Source: ccn.com
In 2022, Bitcoin had a rough time. It fell from its all-time high of $69,000 in November 2022 to a yearly low of $16,000 in January 2024. With that said, price action has been more positive recently. The asset is currently trading at around $23,000, almost a 45% increase since the beginning of 2024.
As such, analysts are expecting even more growth from BTC. Digitalcoinprice.com expects it to reach $50,916.60 sometime this year, whereas, for 2025, the website provides a forecast of $84,175.81.
Priceprediction.net has similar targets. Their short-term prediction for 2024 is a bit lower, with a price of $39,788.63. That said, their 2025 target falls in line with their colleagues — at $83,876.69 per BTC. This could be an even stronger opportunity than exchanging AVAX to ETH.
Swapping BTC to USDT: What Is the Profit?
Bitcoin has seen a good rally in the past months, opening the path for some profit-taking. If you invested at the bottom, at around $16k, you are way in the green and should easily commit to closing a long position, or at least a part of it. Whether this rally is sustainable is anyone’s guess, and will mainly depend on macroeconomic signals.
If you are entering the market at this point, analysts predict a huge upside opportunity, so it can also be a good period to dollar-cost average a new long position.
