Bitcoin Soars by 160% as the Landmark Spot Price ETF Looms in 2024
Summary:
Kicking off 2024, Bitcoin (BTC) enjoyed a rise of 160% from the previous year. The first two weeks of January bring anticipation of the first-ever spot price exchange-traded fund (ETF) approval in the U.S — a significant event with predictions of its impact diversely split among experts. This year also sees the Bitcoin's next block subsidy reduction in just four months. Meanwhile, Bitcoin's network fundamentals have started the year positively, but rising ETF tension could present a twist. Projections for 2025 indicate a new all-time high for Bitcoin, despite the economic challenges such as anticipated recession and inflation. Bitcoin network maintains an upward trajectory, and the crypto market sentiment remains cautiously optimistic.
Bitcoin (BTC) begins the year 2024 with a promising leap, jumping 160% compared to the last year. This rise was accompanied by a lack of any fresh volatility on the year’s last day, in either direction of the bull or bear markets. There is even bigger news on the horizon for Bitcoin as the first fortnight of January approaches, where the deadline for approval of the first-ever spot price exchange-traded fund (ETF) in the United States is set to pass. This event is expected to have an astounding effect on Bitcoin’s historic trajectory. However, the opinions regarding the aftereffects of the decision seem to be divided. While some predict a flood of institutional investment capital changing Bitcoin forever, others foresee the ETF launch as having a two-sided effect, leading to a quick price pullback for the Bitcoin.
The excitement continues with two important events expected in the next quarter; the Bitcoin ETF and the Halving NYE. This year will have its fair share of significance for Bitcoin as just four months from now, Bitcoin’s next block subsidy reduction will occur, something the mining community is preparing a response for. Bitcoin's network fundamentals have begun the year on a positive note, with a 1.5% increase in difficulty being the latest breakthrough. Nonetheless, things may take a different turn when tension over ETF rejection, a plausible scenario many have started to overlook, rises.
As 2024 dawned, BTC/USD managed to welcome the New Year on a calm note, without any significant price action. The initiation of a new annual cycle did not cause any noticeable ripples with minor upward movements towards $43,000. Predictions for the early part of the year suggest that the persisting lack of volatility could indicate a breakout around the ETF decision. The focus seems to gradually shift from BTC to altcoins as BTC's dominance over the crypto market begins to dwindle, a recurring pattern observed in the early stages of Bitcoin bull markets.
Bitcoin's market cap dominance has started to falter. On the widely anticipated U.S. spot Bitcoin ETF acceptance deadline set for Jan. 10, speculation is rife. This event, considered important, has been steeped in controversies. The lead-up to the spotlight ETF acceptance has been tense, filled with industry reshuffling and continuous meetings with U.S. regulators. Many are apprehensive about the announcement possibly triggering a 'sell the news' event resulting in a price drop for Bitcoin. For this outcome, $36,000 has emerged as the prime target.
Projected projections for the coming year hint that a new all-time high is expected before the end of 2025 despite an anticipated recession and inflation. Despite the uncertain economic scenario, Bitcoin is viewed as a potential bulwark against inflation, a 'digital gold', further cementing the belief that Bitcoin's current bullish run is far from over.
Amidst the collection of macroeconomic currents, the first week of the year offers a period of relative calm as Bitcoiners keep an eye on the ETF. No significant U.S. data prints are expected until the Federal Reserve's decision on interest rates, which is due by the month's end. Data exhibits a downward slant in inflation, preparing the markets for a potential shift in the Fed's policies. The chances for the rates' change to happen this month are low, with only a 15% probability but are expected to remain steady at least until March.
The Bitcoin network maintains its upward trajectory similar to the past year. The upcoming difficulty readjustment is ready to amplify the competition among miners, pushing into uncharted territory with difficulty expected to increase about 1.5% to 73.1 trillion. December led to significant miner revenue gains due to higher than average fees, and with the reduction of block subsidy dropping 50% overnight to 3.125 BTC per block coming up in April, this has been an area of interest for miners. Alongside these developments, the crypto market sentiment generally remains tepid, with most investors becoming more 'greedy' at $43,000, signaling the onset of a more bullish market.
Published At
1/1/2024 2:29:32 PM
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