Why Bitcoin Is Expected to Rise in 2024: 5 Key Factors
Date: 2023-09-24 Author: Dima Zakharov Categories: CRYPTO PAYMENTS, IN WORLD
Many participants in the cryptocurrency community are anticipating the growth of Bitcoin and the entire digital asset market in 2024. This expectation is supported by several key factors that shape an optimistic outlook for Bitcoin in the coming year.
1. Federal Reserve Policy Easing
The US Federal Reserve may shift toward lowering the key interest rate. In 2022, the Fed began raising rates due to geopolitical conflicts and rising inflation, reducing the attractiveness of high-risk assets, including cryptocurrencies. However, it is expected that the Fed will move to lower rates in the fourth quarter of 2023. This process could increase the appeal of cryptocurrencies and alleviate pressure on the stock market, which, in turn, would have a positive impact on Bitcoin.
2. Bitcoin Halving
The Bitcoin halving is an event where the rate of Bitcoin mining is halved. This leads to a scarcity of coins, which, as history shows, drives the cryptocurrency's price to new highs. It is expected that the Bitcoin halving will occur in 2024, and this factor has a positive impact on BTC dynamics.
3. Reduction in Seller Influence
Due to the cyclical nature of the crypto market, sellers gradually lose their power. The growing interest of investors in Bitcoin, reflected in various indicators, also contributes to positive BTC dynamics.
4. Launch of a Spot Bitcoin ETF in the US
The launch of a spot Bitcoin ETF in the United States is on the horizon, which is considered a significant event for the cryptocurrency market. Many market participants believe that this will open the door to institutional money flowing into the crypto industry. It's important to note that Gary Gensler, the chairman of the US Securities and Exchange Commission (SEC), has expressed readiness to approve a spot Bitcoin ETF, supporting investor expectations.
5. US Presidential Elections and the Crypto Industry
Upcoming US presidential elections are of interest to the crypto industry. The victory of a candidate supportive of cryptocurrencies can have a positive impact on the market. This creates optimistic expectations among participants in the crypto community regarding the future development of Bitcoin.
In summary, several key factors, such as Federal Reserve policy easing, the upcoming Bitcoin halving, increasing investor interest, the potential launch of a spot Bitcoin ETF in the US, and the influence of the US presidential elections, contribute to an optimistic forecast for Bitcoin's growth in 2024.
