Despite the recent turmoil in the crypto industry, analysts at Macro Hive, the provider of global macro research, have predicted a surprisingly bullish future for Bitcoin in 2024. They see a confluence of factors – increased regulatory clarity, growing institutional adoption, the upcoming Bitcoin halving event, and the possibility of Federal Reserve easing – potentially creating a “perfect storm” that could propel the leading cryptocurrency to new all-time highs.
One key variable in the equation is the potential departure of US Securities and Exchange Commission (SEC) Chair Gary Gensler. His cautious stance and stringent oversight of cryptocurrencies have been a major point of contention within the industry. His exit, whether due to political shifts or other factors, could signal a shift towards a more favorable regulatory environment, potentially boosting investor confidence, as per the prediction.
Furthermore, analysts Dalvir Mandara and Bilal Hafeez believe that increased regulatory clarity will pave the way for greater institutional adoption of Bitcoin. With regulatory uncertainties easing, financial giants like BlackRock could finally be allowed to launch spot Bitcoin exchange-traded funds (ETFs), opening the doors to billions of dollars in potential demand. This influx of institutional capital could significantly impact Bitcoin’s price and liquidity.
Adding to the bullish sentiment is the upcoming Bitcoin halving event, expected in April 2024. This event reduces the reward for mining new blocks, effectively cutting the supply of new Bitcoins in circulation. Historically, these halvings have led to price increases as supply constraints meet growing demand. Coincidentally, the 2024 halving is expected to coincide with the first potential Federal Reserve interest rate cuts, further fueling investment interest in Bitcoin as a potential hedge against inflation.
Macro Hive analysts believe these combined factors could lead to a significant Bitcoin price rally in 2024, potentially pushing it beyond its current all-time high of $67,734. They say a 60% increase is within reach, highlighting the potential for a “perfect storm” scenario.
Reportedly, Bitcoin has roared back in 2023, delivering a 172% price surge that surpasses traditional assets like gold and equities. And recently, Bitcoin spiked to a 10-day high near $44.2K as ETF hopes and whale returns boosted sentiment. ETF optimism and resurgent big investors fuel Bitcoin’s climb to $44.2K, the highest in 10 days.
