Bitcoin’s Price Surge and 5 Major Catalysts for 2024
Bitcoin has reached its highest price since May 2020, largely due to expectations of increased demand from exchange-traded funds. Analysts like Mark Harvey predict that there are five major catalysts that could significantly impact Bitcoin in 2024.
Supply Halving
In April 2024, Bitcoin will experience a pivotal event known as the supply halving. During this event, the block reward will be cut in half, resulting in a decrease in new coin distribution. This change can enhance the supply-demand dynamics of Bitcoin and potentially lead to a boost in prices.
Fair Value Accounting Rules!
Big companies currently face regulatory barriers that prevent them from including Bitcoin on their balance sheets. However, experts are working towards transforming these rules, which could encourage companies to use Bitcoin as a form of digital money. This shift has the potential to significantly impact the business world.
Fed Interest Rate Hikes Pause
The Federal Reserve is likely to pause interest rate hikes and may even decrease them in 2024. This could cause a loss of confidence in commercial banking and push people towards seeking more stable alternatives like Bitcoin.
Approval of spot Bitcoin ETFs
Several major asset management firms, including BlackRock and Fidelity, have submitted applications for Bitcoin ETFs. The approval of these ETFs by the SEC could open up trillions of dollars for investment in Bitcoin, potentially driving up its price.
Muted Bull Market
The previous bull market for Bitcoin was relatively subdued due to various factors such as the collapse of FTX, China’s ban on Bitcoin, and interest rate hikes by the Federal Reserve. As a result, expectations for a significant bull run in 2024 are not very high.
Hot Take: Factors to Consider
While these five major factors have the potential to positively impact Bitcoin and its price, it’s important to remember that predicting the future of crypto is challenging. Investors should exercise caution and conduct thorough research before investing in any asset, including Bitcoin.
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