7 Bitcoin Growth Factors and Prospects - What to Expect
Date: 2024-10-21 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Current Bitcoin Situation
After starting the week with an attempt to break through the $69,500 level, Bitcoin went into a small correction. At the time of writing, its value was $68,959, which is 6% below the all-time high of $73,750 reached on March 14, 2024.
Reasons for Bitcoin Growth
Since the beginning of October, Bitcoin has begun to strengthen its position, and this was influenced by several factors:
1 Expectation of a Fed rate cut: Investors expect a further cut in interest rates by the US Federal Reserve, which could stimulate demand for high-risk assets such as cryptocurrencies.
2 China's actions: China plans to inject additional liquidity into the banking system, some of which will likely end up in cryptocurrencies.
3 US Presidential Election: Many associate the crypto market growth with the victory of crypto-friendly candidate Donald Trump in the 2024 election. According to current estimates, his chances of winning are 60%, and he has already proposed a number of initiatives that can support the crypto market.
4 Bitcoin ETF Investments: Institutional investors continue to increase their investments in Bitcoin ETFs. Over the past week, the inflow into these funds amounted to $ 2.13 billion, which is the third-largest result in history. This is forcing fund managers to increase their BTC holdings, supporting its price.
5 Decrease in supply on exchanges: As a result of the 2024 halving, the volume of Bitcoin on exchanges has significantly decreased, which creates a deficit and stimulates its rate growth.
6 Mt. Gox Creditor Payment Delay: The deferral of payments by the exchange has reduced fears about a possible sale of a significant amount of Bitcoin, which has a positive effect on the rate.
7 Miner Capitulation: Miners have stopped actively selling Bitcoin, which has reduced the pressure on the market and contributed to further growth.
Forecast for the future
Many analysts are confident that Bitcoin is ready for new heights. The well-known author of the Stock-to-Flow theory, PlanB, predicts the beginning of a bull run, which could lead BTC to the $100,000 mark in the near future.
DeFi analyst 0xNobler also believes that Bitcoin will soon enter a parabolic growth phase. His optimism is shared by analyst @Eljaboom, who predicts the price of Bitcoin at $138,000 by the beginning of 2025, based on previous cryptocurrency cycles.
It is also worth noting that the growth of the capitalization of the Tether stablecoin, which is often called “fuel” for the bull run, can further support the positive dynamics of Bitcoin.
