Bitcoin once again crossed the value of 45,000 USD. This may be a perfect start to 2024 for many crypto (especially Bitcoin) fans. Can we expect another Bitcoin Explosion? Well, we can expect anything in cryptocurrency’s favor. But we need to know the factors that contributed to the recent price movement. Let’s see if they can play a huge role in the explosion:
- Market Factors
- Macro Trends & Global Events
- Technical Analysis
- Potential Scenarios
- Investor Sentiments
- Bitcoin ETF
According to a report, more individuals are investing in Bitcoin, and the institutional investment of Bitcoin has reached over USD 10 billion. We can see a 35% increase in retail investor accounts in the past few months. This growing demand may make Bitcoin more valuable among individuals.
On the other side, over 90% of coins have already been mined from Bitcoin’s total supply, which is 21 million. The demand has been more than the supply, which has intensified its scarcity. So, summing up all these factors along with the 6% inflation rate and the growing adoption for various purposes such as crypto payments, we can expect Bitcoin’s value to grow more this year.
Macro Trends & Global Events:
Bitcoin’s market dominance currently stands at over 45%, which may be a reason for choosing Bitcoin over other cryptocurrencies. Approximately, a 15% increase in global conflict is also making individuals see Bitcoin as a secure way to keep their money. And one cannot forget the global inflation rate.
Up to a 40% jump in Bitcoin’s value leads individuals to choose it over traditional currencies to remain unaffected even after global inflation. Along with such factors, the Bitcoin blockchain’s consistently improving efficiency plays a crucial role in the transaction process, which may cause an improved experience for individuals who are making crypto payments. We can say that all these macro trends and global events have caused the recent jump in Bitcoin’s value, and may cause an explosion if remains consistent.
Some potential scenarios may cause a rise in Bitcoin’s value. We can consider the rise in crypto payments with a CAGR of 17% (between 2022 and 2029). This may also cause a rise in the number of crypto payment gateways, especially prioritizing Bitcoin payments.
Some macroeconomic trends like the decline in fiat currency valuation may guide investors to lean towards Bitcoin. There are a number of scenarios that can potentially affect the Bitocin’s value and indicate the explosion.
The recent data of the Bitcoin community refers to positive investor sentiments. Out of over 25% more mentions, we found 70% of them showing confidence in recent market conditions. However such sentiments are subject to change. Fear and Greed indexes play a crucial role in navigating a financial landscape. We expect such sentiments to go wisely towards the explosion.
The approval of Bitcoin ETFs in January 2024 is going to be a deciding factor in Bitcoin’s future. Bitcoin will be able to attract more investors if the ETF gets approved. The approval of the ETF back in 2017 literally increased the value by 2x.
There are several Bitcoin ETF proposals under the SEC’s consideration. If the SEC gives the green signal to them, we can expect another explosion in 2024.
The recent spike in Bitcoin’s price has increased the possibility of another Bitcoin explosion. Team Coinremitter has researched and analyzed factors that can cause such spikes. Almost all of them are going in Bitcoin’s favor. However, we’re a little bit skeptical about the approval of ETFs. If it goes in Bitcoin’s way, we can definitely witness Bitcoin’s price skyrocketing by the end of 2024.