Bitcoin Price Hits New Highs
The price of Bitcoin has reached $40,000 this week, continuing its upward trend since the bear market of 2022. Just two months ago, a whole Bitcoin was priced below $27,000 at the end of September.
Potential Macro Tailwinds in 2024
Two major factors could further boost Bitcoin in 2024: the halving event and possible interest rate cuts by the Federal Reserve. These developments have generated growing excitement in the crypto market.
Fed Rate Cuts Expected
Bank of America’s Global Research team has published its 2024 outlook, predicting interest rate cuts by the Federal Reserve. They expect disinflation to continue and anticipate rate cuts to begin in the middle of the year from both the Federal Reserve and European Central Bank.
Glassnode Predicts Bitcoin Supply Shock
A recent report from Glassnode reveals that a record 70% of circulating Bitcoin supply has been inactive for a year or more. This indicates strong conviction and long-term commitment from current BTC holders, especially considering that the halving is approaching in less than five months.
Furthermore, around 83% of the BTC supply is currently held at a profit, adding to the supply-limiting factors alongside the halving.
Potential Perfect Storm for Bitcoin Price
If the Federal Reserve does cut interest rates and with the approaching halving event, there could be a supply-demand imbalance that favors Bitcoin’s price. Combined with potential institutional demand after SEC approval of a Bitcoin ETF, as projected by Glassnode, 2024 could be a perfect storm for meeting analysts’ outrageous price predictions.
Hot Take: Bitcoin’s Bullish Outlook in 2024
The price of Bitcoin continues to soar, reaching new highs and surpassing previous records. With the halving event and potential interest rate cuts by the Federal Reserve on the horizon, there is growing excitement among crypto enthusiasts. The inactive Bitcoin supply and the majority of BTC held at a profit further contribute to the supply-demand dynamics that could drive prices even higher. Additionally, the potential approval of a Bitcoin ETF by the SEC could lead to significant institutional demand. All these factors combined make 2024 a promising year for Bitcoin, with analysts predicting unprecedented price levels. It’s an exciting time to be part of the crypto market.
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