In addition to the widespread attention and media coverage, many elements and forces exist that have the potential to significantly influence Bitcoin’s trajectory.
In light of the dynamic landscape of cryptocurrencies, as the year 2023 draws to a close, there is a climate of conjecture, optimism and palpable eagerness.
Bitcoin, the pioneering digital entity, finds itself in the midst of this tumultuous environment and projects a substantial influence of possibilities and prospects.
The question arises: is it likely that the highly sought-after $100,000 threshold will be reached by 2024?
Bitcoin to $100K – the main catalyst
The main catalyst now being considered is the expected legalization of Spot Exchange Traded Funds (ETFs)a subject of widespread interest.
Growing speculation that the U.S. Securities and Exchange Commission could approve a spot Bitcoin ETF is what is fueling bitcoin’s resurgence. Analysts at Bloomberg Intelligence have predicted a 90% chance of approval for this vehicle, which would allow major institutional investors with US headquarters to enter the cryptocurrency market before January 10 next year.
Bitcoin is currently showing a robust technical outlook with overwhelmingly bullish sentiment. TradingView’s one-day indicators give a ‘buy’ rating on 15 indicators, with moving averages signaling a ‘strong buy’ on 13, while seven indicators remain neutral.
This technical strength is consistent with the recent rise in Bitcoin’s value, fueled primarily by widespread anticipation surrounding the possible adoption of a spot Bitcoin ETF.
Bitcoin slightly above the $37K level today. Chart: TradingView.com
A more accommodating stance from the Fed
Another possible factor that could drive change is the US Federal Reserve taking a more cooperative approach.
Over the past 18 months, the central bank has taken a proactive approach by raising interest rates to tackle the inflation problem, and there is a possibility that this policy stance could be maintained.
If Federal Reserve Chairman Jay Powell and his staff are confident in their efforts to effectively control inflation, it is possible that they will not only halt the increase in interest rates but also consider lowering them by 2024.
The interconnected nature of financial markets and policy decisions underlines the need for vigilant observation as we navigate the changing landscape of economic dynamics.
Bitcoin halving could be a game-changer
Bitcoin’s next halving an intriguing event that happens about every four years and halves the rate of inflation is the third that could dramatically change the game.
This halving, scheduled for April 2024, will set a new supply schedule for Bitcoin and significantly reduce annual inflation compared to precious metals, such as gold.
This is an important factor, not just a whim. The price of Bitcoin will inevitably rise as long as the demand for it continues to grow and there is less supply available. The story of Bitcoin’s history bears this out, with strong bull markets typically starting in the months leading up to and following a halving.
Amid the dynamic cryptocurrency landscape, the end of 2023 sets the stage for Bitcoin’s journey into 2024. With factors like regulatory decisions on spot ETFs, the Federal Reserve’s policy shifts, and the intriguing prospect of Bitcoin’s halving, it is unfolding story is promising. .
Could the sought-after $100,000 threshold become a reality? As the cryptocurrency market continues to evolve, opportunities abound for those ready to navigate the winds of change in this digital frontier.
At the time of writing, Bitcoin was trading at $37,075, down 0.1% over the past 24 hours and up 5.4% over the past seven days, Coingecko data shows.
(The content of this site should not be construed as investment advice. Investing involves risks. When you invest, your capital is subject to risk).
Featured image from iStock
