by After a turbulent year in 2023, marked by significant developments and regulatory actions, the outlook for cryptocurrencies, particularly Bitcoin, looks promising in 2024. Here are four key reasons why the price of Bitcoin could experience a surge this year.
1. Potential Approval of a Spot Bitcoin Exchange Traded Fund (ETF):
The US Securities Exchange Commission (SEC) may finally greenlight a spot Bitcoin ETF, opening the doors for mainstream investors and financial institutions to participate in the Bitcoin market. Currently, only futures market ETFs are permitted in the US. If approved, a spot Bitcoin ETF would make it easier for investors to gain exposure to Bitcoin without having to directly purchase the asset, potentially attracting more investors and increasing demand.
Notably, major players such as Blackrock, the world’s largest investment house, have applied for a spot Bitcoin ETF. Additionally, Grayscale, a significant digital asset group, won a significant case against the SEC, prompting a reconsideration of its application to convert its Bitcoin futures ETF into a spot version. Hong Kong’s regulatory authority has also expressed openness to spot Bitcoin ETF applications, further indicating a growing acceptance of these investment vehicles.
2. Technological Advancements in the Bitcoin Network:
In 2023, the Bitcoin network witnessed several technological advancements, including the introduction of a new form of non-fungible tokens (NFTs) called ordinals and the development of a new standard known as BRC-20, allowing the creation of new cryptocurrencies on the Bitcoin network. Previously, NFTs and new cryptocurrencies were predominantly issued on platforms like Ethereum. These innovations, along with the growing adoption of the Lightning network, a layer above the Bitcoin blockchain enabling faster transactions, are driving increased demand for Bitcoin and could contribute to a price surge.
3. Increased Adoptions of Cryptocurrencies:
2024 may see increased adoption of cryptocurrencies, leading to higher prices. As more individuals and institutions recognize the potential of digital assets, the demand for cryptocurrencies, including Bitcoin, is likely to soar. While predictions vary, some commentators anticipate Bitcoin prices ranging from $60,000 to $500,000 by the end of the year. Despite potential challenges along the way, the overall sentiment suggests a positive trajectory for cryptocurrencies, propelling Bitcoin’s price beyond the current $40,000 mark.
4. Regulatory Clarity and Market Clean-up:
The regulatory actions taken in 2023, such as the conviction of FTX CEO Sam Bankman-Fried and the US Treasury Department’s settlement with Binance, have contributed to improving the cryptocurrency space. Additionally, a US court ruling that XRP, one of the top ten cryptocurrencies, is not a security provides a precedent against the industry’s legal challenges. This regulatory clarity helps to build investor confidence, potentially attracting more mainstream investors and fostering a favorable market environment for Bitcoin’s price growth.
In conclusion, the year 2024 holds significant potential for Bitcoin’s price surge. The potential approval of a spot Bitcoin ETF, technological advancements in the Bitcoin network, increased cryptocurrency adoption, and regulatory clarity all contribute to a bullish outlook for Bitcoin’s price in the coming year. While the road may not be without challenges, it is likely that 2024 will witness increased adoption of cryptocurrencies, driving prices beyond the current $40,000 threshold.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
