If you’ve been thinking about crypto lately, wondering what the future might bring for the initiator of the crypto industry, and whether it’s still a good idea to learn how to purchase Bitcoin or not, you are not the only one sitting with these thoughts. Bitcoin has always been the main player in the crypto industry, so the hopes and plans of many traders and investors depend on its evolution.
Due to the excessive volatility of the market, Bitcoin, like all other cryptocurrencies, has had some great years and some very terrible ones, also known as bull and bear markets. There were times when Bitcoin seemed unstoppable, experiencing phenomenal growth, which drew in large numbers of investors looking to make a quick buck, and other periods of dramatic downfall when Bitcoin seemed to be on the verge of demise. This alternation between phases of rise and decline continues to keep everyone on the edge of their seats.
So, what’s it going to be this year? Is the crypto king going to thrive or are we in for some unpleasant surprises? Well, although it’s hard to tell what the crypto gods might have in store for us, everything seems to point toward a positive development for Bitcoin. According to experts, there are solid reasons to believe that 2024 might be one of the best – if not the best – years in Bitcoin’s brief but thrilling history. So, let’s see where all this optimism is coming from and what could happen with Bitcoin in the upcoming months.
Bitcoin’s Run So Far
With more than half of the year already behind us, we need to take a look at Bitcoin’s progress so far before we shift our focus to the future. A lot of things have happened since January, and most of them have been on the positive side.
For starters, on January 10, the U.S. Securities and Exchange Commission gave the green light for the launch of the first 11 spot Bitcoin exchange-traded funds (ETFs) after a long string of rejections that spanned over more than a decade. The approval marked a historic moment, not just for Bitcoin but the entire crypto market, as it opened up a new, simpler, and safer venue for investors to gain access to Bitcoin.
Spot Bitcoin ETFs are products offered by major asset management companies like BlackRock or Grayscale that aim to eliminate many of the intricacies related to crypto investments, thus lowering barriers to entry and enhancing Bitcoin’s appeal for institutional investors. Having more companies and organizations take an interest in crypto and add Bitcoin to their portfolios via spot ETFs is bound to increase the legitimacy and acceptance of digital currencies in the financial market.
Unsurprisingly, the buzz created around the emergence of spot Bitcoin ETFs had a positive impact on Bitcoin’s performance. The asset experienced a solid appreciation in the weeks following the approval, eventually exceeding its former high and establishing a new record of $73,750 on 14 March.
The Bitcoin halving on April 19 was the next big event on Bitcoin’s roadmap for the year. By this time, the asset’s price had declined to $63K, a price point that turned into a major resistance level. As the block reward was reduced by 50% to 3.125 BTC, many anticipated the start of a new bull run. But despite the high expectations around this development, Bitcoin didn’t experience much appreciation, trading under $70K for the most part, with only brief spikes above this threshold.
However, on May 23, the SEC made an unexpected move and approved eight 19b-4 proposals for the launch of spot Ether ETFs. Just as with spot BTC ETFs, the consent for these new products caused a lot of enthusiasm in the market, pushing Bitcoin’s and other crypto assets’ prices up. That helped Bitcoin finally break above the resistance level and set the stage for further appreciation. At the time of writing, Bitcoin was trading at $98,313, with a market cap of $1,945.34B.
The Lookahead
So far, so good. But what about the months ahead? Most analysts seem to believe that the best is yet to come, and they bring several arguments in this respect. First of all, Bitcoin has been on an upward trend for the better part of 2024, and there are no indications that the remaining months of the year might unfold differently. The year-to-date (YTD) returns for Bitcoin in 2024 stand at 132%, showing a solid performance for the asset.
With spot Ether ETFs ready to enter the scene, interest in these products is bound to increase. Inflows into spot Bitcoin ETFs have risen steadily since their launch, so more investors are expected to take the plunge thanks to the accessibility these funds provide. Increased institutional participation equates to higher gains, creating the perfect conditions for a potential bull market.
But probably the most compelling argument for the positive development of Bitcoin is the post-halving effect. This year, Bitcoin broke its record before the quadrennial reduction occurred, which doesn’t align with the usual pattern exhibited by the asset around this event. This unusual behavior is attributed to the different context that Bitcoin has had, and many argue that the crypto hasn’t felt the full effect of the halving just yet. This means that this time around, the halving-induced bull run might start later than usual but last longer and lead to significant price appreciation.
There are also hopes that geopolitical forces could encourage investments in riskier assets like Bitcoin.
Since all these factors could serve as catalysts for Bitcoin’s rise, there are plenty of reasons to feel optimistic about the asset’s future at the moment. So, here’s to hoping more good news is coming for Bitcoin.
