Where is Bitcoin heading in 2024?

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Bitcoin has had an eventful year. But the prospects for 2024 are good, especially if the economy develops as currently forecast.

Is the long-lasting crypto winter finally coming to an end? It looks like this at the moment. If you take a look at the price development of Bitcoin in 2023, you will see that the mother of all cryptocurrencies has experienced an enormous upswing.

Price tripling in just a few months

While the price at the beginning of the year was a meager $16,600, it recently rose to over $43,000. This made Bitcoiners happy, who are betting that things will continue to improve in 2024.

This is not surprising, as there are numerous decisions to be made next year that will make further price gains likely. First of all, there is the decision by the American Securities and Exchange Commission regarding the approval of the first Bitcoin spot ETF, which has been awaited for months. Exchange traded funds are also very popular with investors in Germany because they simplify access to a number of companies.

Approval of an ETF is imminent

A Bitcoin spot ETF would replicate the price development of the cryptocurrency in real time, giving investors the chance to participate in the development of the cryptocurrency . This applies without having to buy Bitcoin yourself and keep it in wallets.

There are now increasing signs that the SEC will change its mind and is expected to approve the first Bitcoin spot ETF in January next year.

Bitcoin halving raises high hopes

As if that wasn’t enough, the next Bitcoin halving is expected to take place in April of this year . According to the principle that a shortage drives up the price, the Bitcoin price should rise this time too. Bitcoin investors were already able to enjoy significant price jumps during the past halvings.

Both events in combination have the potential to make Bitcoin shine brightly again. So it’s no wonder that many Bitcoin are betting on the SEC and the halving. But that was not all. Finally, the inflation crisis appears to be slowly but surely easing.

Interest rate cuts are good for the crypto market

The high price increases seem to be a thing of the past; now the global economy has to manage the last few meters without causing massive economic and political upheavals. The American central bank Fed has already announced the first interest rate cuts for 2024. If everything goes according to plan, there should be three in total.

In Europe, the ECB is still holding back a bit, but if price increases continue to fall, it will also follow the Americans’ course. This is good news for cryptocurrencies, which traditionally benefit from loose monetary policy.

Crisis party

There is increasing regulation by states. This proves that Bitcoin is moving further into the mainstream and is perceived that way. The numerous crises of the last few years have shown that Bitcoin endures even in difficult economic times, which should ensure additional speed in price development during an upswing.