As 2023 comes to a close, the future of Bitcoin is a topic of much speculation and anticipation. With various factors at play, the cryptocurrency’s trajectory in 2024 is uncertain, but there are several catalysts that could potentially drive its value to the highly sought-after $100,000 threshold.
## Bitcoin To $100K – The Main Catalyst
The primary catalyst under consideration is the potential legalization of spot exchange-traded funds (ETFs). There is growing speculation that the US Securities and Exchange Commission may approve a spot Bitcoin ETF, which could allow significant institutional investors to enter the cryptocurrency market. Analysts at Bloomberg Intelligence have projected a 90% possibility of approval for this vehicle, fueling the revival of bitcoin.
Bitcoin is currently displaying a robust technical outlook with an overwhelmingly bullish sentiment. This technical strength aligns with the recent surge in Bitcoin’s value, primarily fueled by widespread anticipation surrounding the potential approval of a spot Bitcoin ETF.
[Bitcoin](https://www.coingecko.com/) is currently trading at a level slightly above $37,000.
## A More Accommodating Stance By The Fed
Another potential factor that could stimulate change is the US Federal Reserve adopting a more cooperative approach. If the Federal Reserve feels confident in their efforts to effectively control inflation, it is possible that they may not only halt the increase of interest rates but also consider reducing them by 2024.
The interconnected nature of financial markets and policy decisions underscores the need for vigilant observation as we navigate the evolving landscape of economic dynamics.
### Bitcoin Halving Could Be A Game-Changer
The next halving of Bitcoin, an event that happens around every four years and cuts the pace of inflation in half, is the third thing that might change the game drastically. This halving, scheduled for April 2024, will provide a new supply schedule for Bitcoin and significantly reduce its annual inflation rate in comparison to precious metals, like gold.
In the midst of the dynamic cryptocurrency landscape, the close 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 halving, the narrative unfolds with promise.
At the time of writing, Bitcoin was trading at $37,075, down 0.1% in the last 24 hours, and sustained a 5.4% increase in the last seven days, data from Coingecko shows.
*(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).*
*Featured image from iStock*
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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