The anticipated 2024 Bitcoin bull run is driving investment decisions, fueled by factors such as the approval of Spot Bitcoin ETFs and the upcoming BTC halving event. Analysts predict the halving will significantly reduce new coin circulation, culminating in elevated demand surpassing supply, potentially leading to a market price surge. Coinciding with the US presidential elections, a research analyst forecasts Bitcoin reaching $70,000 in 2024, driven by macroeconomic factors and increasing demand from TradeFi investors.
Our analysis of the situation
The anticipation of a Bitcoin bull run in 2024 has fueled frenzied investment activity within the crypto space. An array of factors such as the approval of Spot Bitcoin ETFs for trading and the upcoming BTC halving event have been touted as grounds for this predicted surge. Notably, one analyst, James van Straten, has outlined why the halving is expected to usher in a bullish market, emphasizing the impact of this event on the crypto landscape.
Van Straten highlights the Bitcoin halving event, a programmed occurrence designed to transpire approximately every four years, diminishing block rewards by half each time. Consequently, the reduction in the number of BTC awarded to miners for mining a block by 50% dramatically limits the influx of new coins into circulation. With the current block reward at 6.25 BTC set to plummet to 3.125 after the halving, the impending decrease in monthly issuance to 13,500 BTC from a recent 61,000 BTC poses a significant paradigm shift.
Featured in Van Straten's analysis is the potential outcome should demand remain constant at pre-halving levels—a scenario where demand surpasses supply by a factor of four. This situation, he posits, would necessitate the market to “find an equilibrium most likely higher,” effectively propelling prices upwards to meet the intensified demand.
In addition to the halving's impact, Markus Thielen, Head of Research at Matrixport, draws attention to the coinciding nature of the halving year with the United States presidential elections. Historical data suggests a positive correlation between these events and the price of Bitcoin, with the last three halving years culminating in significant price hikes: 152% in 2012, 121% in 2016, and 302% in 2020. With 2024 marking another halving and election year, Thielen forecasts Bitcoin's price to reach $70,000 by year-end, indicating a potential 65% ascent from current levels and the inception of a fresh bull market.
As the stage is set for 2024, the convergence of the halving event, election cycle, and evolving trade-fi landscape paves the way for a compelling narrative of growth and opportunity within the Bitcoin sphere. With all eyes on the horizon, the prospect of a momentous bull run looms, beckoning investors and enthusiasts alike into a realm of tantalizing prospects and surging potential.
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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