The Potential for Bitcoin to Reach $100K
As 2023 draws to a close, you might be wondering if Bitcoin is poised to reach the highly anticipated $100,000 threshold in 2024. The main catalyst for this potential milestone is the expected legalization of spot exchange-traded funds (ETFs).
There’s growing speculation that the US Securities and Exchange Commission may approve a spot Bitcoin ETF, allowing significant institutional investors with US headquarters to enter the cryptocurrency market before January 10 next year. Analysts at Bloomberg Intelligence have projected a 90% possibility of approval for this vehicle.
Currently, Bitcoin is showing a strong technical outlook with an overwhelmingly bullish sentiment. This strength aligns with the recent surge in Bitcoin’s value fueled by widespread anticipation surrounding the potential approval of a spot Bitcoin ETF.
A More Accommodating Stance By The Fed
Another factor that could stimulate change is 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 inflation. If they feel confident in their efforts, they may not only halt increasing interest rates but also consider reducing them by 2024.
The interconnected nature of financial markets and policy decisions underscores the need for vigilant observation as we navigate the evolving landscape of economic dynamics.
Bitcoin Halving Could Be A Game-Changer
The next halving of Bitcoin, scheduled for April 2024, will provide a new supply schedule for Bitcoin and significantly reduce its annual inflation rate. The price of Bitcoin will likely rise as long as demand keeps growing and there is less supply available. Strong bull markets usually commence in the months preceding and succeeding a halving.
Hot Take: The Future of Bitcoin
In conclusion, as we enter 2024, regulatory decisions on spot ETFs, shifts in Federal Reserve policy, and the intriguing prospect of Bitcoin halving set the stage for Bitcoin’s journey into the new year. As opportunities continue to evolve in this digital frontier, it’s essential to stay alert and ready to navigate the winds of change.
At the time of writing, Bitcoin was trading at $37,075, down 0.1% in the last 24 hours but sustaining a 5.4% increase in the last seven days according to data from Coingecko.
By
By
By
By