Will Bitcoin Hit $100,000 By 2024? Spotlight On Potential Drivers
In addition to widespread attention and media coverage, there are many elements and forces that could significantly influence Bitcoin’s trajectory.
Facing the dynamic cryptocurrency landscape, as 2023 draws to a close, there is a climate of conjecture, optimism and tangible eagerness.
Bitcoin, the pioneering digital entity, finds itself in the middle of this tumultuous environment, projecting a substantial influence of possibilities and prospects.
The question arises: is it plausible that in 2024, the coveted threshold of $100,000 will be reached?
Bitcoin at $100,000 – The Main Catalyst
The main catalyst currently under consideration is the anticipated legalization of spot exchange-traded funds (ETFs)which is a subject of general interest.
Growing speculation that the U.S. Securities and Exchange Commission may approve a spot Bitcoin ETF is fueling the Bitcoin renaissance. Bloomberg Intelligence analysts predict a 90% probability of approval for this vehicle, which could allow large US-based institutional investors to enter the cryptocurrency market before January 10. next year.
Bitcoin currently displays a strong technical outlook with extremely bullish sentiment. TradingView’s one-day indicators give a “buy” rating for 15 indicators, with the moving averages reporting a “strong buy” for 13, while seven indicators remain neutral.
This technical strength aligns with the recent rise in Bitcoin’s value, primarily fueled by widespread anticipation surrounding the potential approval of a spot Bitcoin ETF.
Bitcoin slightly above the $37K level today. Chart: TradingView.com
A more accommodating position from the Fed
Another factor likely to spur change would be the US Federal Reserve adopting a more cooperative approach.
Over the past 18 months, the central bank has used a proactive approach of raising interest rates to address the inflation problem, and it is possible that this policy stance will be maintained.
If Federal Reserve Chairman Jay Powell and his aides are confident in their efforts to effectively control inflation, they may not only stop interest rates from rising but also consider cutting them further. by 2024.
The interconnected nature of financial markets and policy decisions highlights the need for vigilant observation as we navigate the changing landscape of economic dynamics.
Bitcoin Halving Could Be a Game Changer
The next Bitcoin halving, an intriguing event that occurs every four years or so and cuts the rate of inflation in half, is the third thing that could radically change the situation.
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, like gold.
This is an important factor, not just a quirk. The price of Bitcoin will inevitably increase as long as demand continues to grow and supply is less. Bitcoin’s history bears this out, with strong bull markets typically beginning in the months leading up to and following a halving.
Amid the dynamic cryptocurrency landscape, the end of 2023 sets the stage for Bitcoin’s journey through 2024. With factors such as regulatory decisions on spot ETFs, Federal Reserve policy changes, and the Intriguing prospect of Bitcoin halving, the narrative unfolds with promise. .
Could the coveted $100,000 threshold become a reality? As the cryptocurrency market continues to evolve, opportunities abound for those willing to ride the winds of change in this digital frontier.
At the time of writing this article, Bitcoin was trading at $37,075, down 0.1% over the past 24 hours and maintained an increase of 5.4% over the past seven days, according to Coingecko data.
(The content of this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from iStock
