Fall in interest rate to EFT approval crypto space is on a high alert and gearing up well for the year 2024. Even though, Bitcoin’s 8th-week gain created a historic moment. It appears to fade soon as its price hovers around $41,800, marking a 4% dip this week.
This potential downturn signals a pause in Bitcoin’s climb since October, causing many to cash out and book profits. Looking at this key scenario, market observers noted a net inflow of $860 million worth of BTC into exchanges, a move typically signaling intentions to sell. If Bitcoin closes the week below $43,800, it will close its longest winning streak since 2017.
In a highly optimistic claim, WOO Network said that BTC will hit $75,000 early in 2024 as reports about the U.S. approving a bitcoin ETF and bitcoin halving events come together.
Here’s why the market is loaded with extreme predictions encircling Bitcoin. What’s the moment of truth?
Bitcoin’s Winning Streak: Hanging in the Balance
In a recent interview with CoinDesk TV, Craig Erlam, senior market analyst at OANDA, expressed his perspective on trading, stating that this type of market fluctuation is typical. He talked about how prices rarely move in a straight line across a wide range of asset classes. This was meant to emphasize how volatile financial markets are by their very nature.
On the flip side, the long-term HODLers in the crypto community, haven’t started selling despite short-term profit-taking. Their reluctance to sell has resulted in a tightened supply of Bitcoin, setting the stage for potential price hikes. Some market observers foresee Bitcoin revisiting all-time highs in the coming year, buoyed by anticipated ETF listings and the forthcoming halving event in April that will cut new BTC issuance in half.
How Will Be 2024 for Bitcoin?
The analyst believes the recent dip in Bitcoin’s price is just a brief pause in its upward trajectory. Market participants foresee interest rates dropping in the U.S., U.K., and Europe, which could favor riskier assets like Bitcoin compared to the past 18 months. This positive sentiment stems from a more optimistic outlook for the market as investors become increasingly comfortable with risks.
That’s why there is a huge anticipation of U.S. regulatory approval for spot Bitcoin ETFs by major financial players like BlackRock who may create a fresh demand for Bitcoin. Despite short-term profit-taking, long-term holders will stick to their positions, restricting Bitcoin’s supply and setting the stage for potential price surges.
Meanwhile, the convergence of favorable factors, including regulatory developments and reduced Bitcoin supply, leads experts to predict that Bitcoin could approach all-time highs by 2024 or possibly even earlier.
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