Bitcoin Price Analysis: 2 Key Factors Driving Bitcoin To $100,000 In 2024
Following weeks of directionless sideways trading, the crypto market is back on a bullish path. In addition to the CPI data showing easing inflation figures in the US, optimism surged significantly for the approval of spot Ethereum ETFs on Monday, igniting widespread bullish action in the market. Based on the current Bitcoin price analysis, a rally to $100,000 seems to be in the cards, backed by the post-halving sentiment among investors.
1. Ethereum Spot ETF Approval Beckons
Bloomberg ETF analysts including the renowned Eric Balchunas increased odds for the approval of Ethereum ETFs from 25% to 75%. According to the Ethereum price analysis published by CoinGape on Tuesday, the change of heart followed what the analysts referred to as influence from higher-ranking individuals.
With the US Elections happening later in the year, certain factors could be politicized to gain mileage, tapping into the crypto vote. Cryptocurrency holders continue to grow in the US and such a gesture could sway their choice of candidate.
Nevertheless, the SEC has apparently made an about-turn on the matter and suddenly considering greenlighting various applications filed by high-profile firms like BlackRock, Fidelity, VanEck, Cathie Woods, Bitwise, Franklin Templeton, Hashdex, and Galaxy Digital.
Since the news broke out, Ethereum has significantly increased in value, mirroring Bitcoin’s surge before the approval of the ETF on January 10. Ethereum closed in on the crucial $4,000 level but pulled back to $3,785 while maintaining a 21% increase in value over 24 hours.
2. Bitcoin Post-Halving Outlook
Bitcoin halving occurred in April reducing the reward miners receive per blocked mined from 6.25 BTC to 3.125 BTC. The event which takes place in cycles of four years is essential for the continuity of the network in addition to keeping Bitcoin a deflationary asset.
Reducing rewards and the number of new coins joining the market from 900 BTC to 450 BTC, the available supply shrinks with time. If demand remains the same or increases, it creates optimum conditions for a parabolic rally.
However, the impact of Bitcoin halving is often experienced gradually, hence the doldrums that followed the event in April and early May. This also implies that the long-term outlook is highly bullish, underscoring the prediction of $100,000 in 2024.
Bitcoin Price Analysis: Will Bitcoin Regain Ground Above $70,000
The run-up from last week continued on Monday, propelling Bitcoin price to $72,000. The bullish move buoyed by the buzz around the Ethereum ETF spread across the market growing the total cap to $2.66 trillion.
Despite a buy signal from the Moving Average Convergence Divergence (MACD), BTC had retreated below $70,000 during US business hours and hovered at $69,920.
This is likely a healthy retracement, with Bitcoin bound to resume the uptrend after collecting more liquidity. Some holders and traders may have chosen to take early profits, contributing to the pullback.
A daily close above $72,000 or the red band on the chart is required to affirm the rally chasing new highs.
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