Eduardo Pfaff, responsible for TradingView’s regional development and growth, and financial advisor, shares his point of view regarding the events that will drive the cryptocurrency next year.
Cryptocurrency investors anticipate dozens of significant events in the coming year. The excitement around Bitcoin’s growth in 2023 has been extraordinary, but it appears the excitement is far from over.
Below, Eduardo Pfaff summarizes the factors that have determined the rise of Bitcoin (BTC) and analyzes what could happen next year.
The start of 2023 has been a challenging period for Bitcoin. BTC was valued at around $16,000 in January. Despite unfavorable market conditions, including a 40% rise since the beginning of the year in stock indices like the Nasdaq and a 10% rise in gold (XAUUSD),
Bitcoin has actually managed to thrive. A series of events were triggered, leading to the remarkable 165% increase in the value of Bitcoin throughout 2023.
The year began with a banking crisis that affected a couple of US banks and Credit Suisse. Crypto movements can sometimes be difficult to explain, but it seems that this crisis prompted investors to see BTC as a viable alternative amid fears of bank failures.
The word “alternative” has been one of the key drivers for Bitcoin. In 2023, the US dollar and US bonds had long been the trendsetters. However, as the USD weakened and bond yields fell, investors looked for other options. Previously unnecessary, these searches became crucial in a climate where even lower-risk assets no longer guaranteed satisfactory returns.
SVB and Credit Suisse Crisis Prompted Investors to See BTC as a Viable Alternative Given Fears of Bank Failures
One influential factor impacting BTC is the ongoing discourse around Bitcoin ETFs. Each news related to the topic added (and still adds) 100 points to the volatility of the crypto market. Many are eagerly awaiting the ETF’s approval, believing it will boost demand for crypto by making crypto-based assets more accessible to a broader audience, including traditional asset enthusiasts.
The fervor for the approval was so intense that even fake news about it significantly influenced BTC prices in early fall. Combined with a weakened USD and next year’s halving, these factors continue to shape the crypto landscape.
Now, as 2024 approaches, tailwinds continue to affect Bitcoin. Notably, the US dollar will likely decline in the coming year due to interest rate cuts from the Federal Reserve, and other major central banks are anticipated to adopt dovish policies.
The Bitcoin halving, scheduled for April 2024, historically leads to post-event growth. Additionally, there is growing speculation from experts and insiders that the Bitcoin ETF approval may have specific dates, possibly as early as January 10.
Speculation with Bitcoin ETF Approval Date: January 10
The overall impact is expected to be positive for the development of Bitcoin. If BTC ETF approval materializes, it could pave the way for additional crypto-based funds, particularly those based on Ethereum. Despite being eclipsed by Bitcoin in 2023, Ethereum could see a change of fortune under new circumstances.
Ultimately, it is essential to do extensive research before making any investment decision. There is no substitute for diligent analysis in the ever-evolving world of crypto.
By Audy Castaneda
