As we approach the end of 2023, the recent revival of the cryptocurrency market has led to speculation of a much more positive performance next year. Crypto enthusiasts, Bitcoin He expects to break new records and recruit new crypto natives.
Important Factors
Expectations are based on several factors. First expected by the SEC in January spot Bitcoin exchange traded fund (ETF) approval.
On the other hand, according to analysts’ estimates, an ETF approval is expected in the first weeks of January. Optimism regarding a possible approval has been declining since November. crypto- caused prices to rise. In this context, Bitcoin peaked at 44 thousand dollars. BTC has remained above $40,000 levels since then.
A spot Bitcoin ETF would make the digital asset tradable on the US exchange. Additionally, experts say that the influx of institutional firms like BlackRock will help new investors join crypto and hence a surge in capital inflows.
Meanwhile, the Bitcoin halving, which is expected to occur around April, will likely push prices up. This event is significant as it shrinks the supply of Bitcoin by reducing the reward miners receive for confirming and verifying transactions.
Historically, Bitcoin’s prices often rise before and after the event occurs. Analysts do not expect anything different next year. The halving in 2024 will reduce mining rewards from 6.25 BTC to 3,125 BTC per block.
On the other hand, the Federal Reserve’s dovish turn on interest rates excited both traditional and crypto markets. Considering the impact of the rate cut and how it will ease spending, experts believe it could also help inflow of capital into the Bitcoin and crypto market.
Moreover, cryptocurrencies have also made their way into the US presidential elections scheduled for next year. The US has come under fire for its regulatory crackdown on crypto assets, particularly from the SEC led by Gary Gensler.
Presidential candidate Robert F. Kennedy Jr. As part of his campaign, he promised to loosen regulatory strings around Bitcoin if elected. Additionally, fellow candidates Vivek Ramaswamy, Asa Hutchinson, and Dean Phillips have reportedly pledged to ease regulatory pressures on crypto companies.
Ultimately, experts predict that these factors could push Bitcoin to an all-time high in 2024. According to Matrixport, it is possible for the leading digital asset to reach $125 thousand by the end of 2024. This prediction also leads to bullish speculation for crypto assets in 2024.