The Managing Director of Bitget, Gracy Chen, has made some predictions about the price trend of Bitcoin in 2024. While the current price is slightly lower than at the end of December, it is possible to make some hypotheses about what could happen throughout the year.
Where is Bitcoin heading? Predictions for 2024
Chen focuses on the events that could influence the price of Bitcoin in 2024 after the launch of BTC spot ETFs in the USA. The halving, which will occur around April, significantly affects the dynamics of BTC supply and demand. With the approval of ETFs, the demand for Bitcoin is expected to increase throughout the year.
The next halving is approaching
Halving reduces selling pressure as miners have to sell less BTC to finance their expenses. If buying pressure also decreases, the impact on price could be irrelevant. However, if new ETFs generate an increase in demand, Chen predicts a price rally after the April halving.
The monetary policy of the Federal Reserve
Changes in US monetary policy by the Federal Reserve (Fed) will be a decisive factor. A decline in rates and yields of Treasury bonds could be positive for risk-on assets. Market capitalization of stablecoins has been growing, which usually occurs later than market trends.
Technological innovations
Positive technological developments in the Bitcoin ecosystem lead to continuous prosperity. Assets linked to protocols like Ordinals and Atomicals increase demand for BTC.
Will 2024 be a positive year for Bitcoin?
Barring any unforeseen developments, 2024 could be a positive year for Bitcoin with increased demand and decreased supply. The launch of new Bitcoin spot ETFs did not result in a significant decline. However, unexpected events can still cause declines or crashes for Bitcoin.
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