In addition to widespread attention and media coverage, there are many elements and forces that have the potential to significantly influence the trajectory of Bitcoin.
Against the dynamic landscape of cryptocurrencies, as the year 2023 comes to a close, there is a climate of conjecture, optimism and tangible excitement. Bitcoin, the pioneering digital entity, stands in the midst of this tumultuous environment, projecting a substantial influence of possibilities and prospects. The question arises: is it plausible that the desired threshold of $100,000 will be reached in 2024?
Bitcoin at $100,000: the Main Catalyst
The main catalyst now being considered is the planned legalization of spot exchange-traded funds (ETFs), which is a topic of widespread interest. Growing speculation that the US Securities and Exchange Commission could approve a spot Bitcoin ETF is what is driving bitcoin’s revival.
Analysts at Bloomberg Intelligence have projected a 90% chance of approval for this vehicle, which may allow major US-based institutional investors to enter the cryptocurrency market before January 10 of next year. Bitcoin is currently showing a strong technical outlook with overwhelmingly bullish sentiment.
TradingView’s one-day indicators give a “buy” rating for 15 indicators, with moving averages indicating a “strong buy” for 13, while seven indicators remain neutral. This technical strength aligns with the recent rise in Bitcoin value, driven primarily by widespread anticipation surrounding the potential approval of a Bitcoin spot ETF.
A More Accommodative Stance by the Federal Reserve
Another possible factor that could spur change is the US Federal Reserve taking a more cooperative approach. Over the past 18 months, the central bank has used a proactive approach of raising interest rates to address the problem of inflation, and there is a possibility that this policy stance will continue.
If Federal Reserve Chairman Jay Powell and his staff are confident in their efforts to effectively control inflation, they may not only stop raising interest rates but also consider lowering them by 2024.
The interconnected nature of the financial markets and political decisions underscore the need for close observation as we navigate the changing landscape of economic dynamics.
Bitcoin Halving Could Be a Game Changer
The upcoming Bitcoin halving, an event that occurs roughly every four years, is the third thing that could change the game dramatically. This halving, scheduled for April 2024, will provide a new supply schedule for Bitcoin and significantly reduce its annual inflation rate compared to precious metals such as gold. This is an important factor, not just a quirk.
The price of Bitcoin will inevitably rise as demand continues to grow and there is less supply available. Bitcoin’s history bears this out, with strong bull markets typically beginning in the months before and after a halving. Amid the dynamic cryptocurrency landscape, the close of 2023 sets the stage for Bitcoin’s journey into 2024.
With factors such as regulatory decisions on spot ETFs, Federal Reserve policy changes, and the intriguing prospect that Bitcoin Halving, Narrative Developments Promisingly.
As the cryptocurrency market continues to evolve, opportunities abound for those ready to ride the winds of change on this digital frontier. At the time of writing, Bitcoin was trading at $37,075, down 0.1% over the past 24 hours, and maintained a 5.4% rise over the past seven days, Coingecko data shows.
By Audy Castaneda