After a period of volatility earlier in the year, Bitcoin (BTC) could be on the verge of hitting new all-time highs. The 48,000 US dollars seem to have been conquered again, so that the arrows are now pointing even further upwards. The recently approved spot exchange traded funds (ETFs) and the upcoming halving are seen as key catalysts that could support this rally. The CEO of fund manager Bitwise, Hunter Horsley, sees a particularly bright future.
The new valuation of Bitcoin
Hunter Horsley recently expressed the view that 2024 will be the year when the true value of Bitcoin will be revealed in the capital markets. According to Horsley, the introduction of Bitcoin ETFs has fundamentally changed the way Bitcoin is valued by increasing previously limited market participation. “Forget what you knew about the price of Bitcoin. In 2024 we will find out how the entire capital market actually values Bitcoin,” Horsley said in a post on X (formerly Twitter).
We are in a new era of Bitcoin price discovery.
What does this mean: Bitcoin is valued by the market. Before Bitcoin ETFs, most of the market was unable to participate. Now it is possible for the first time. For example, imagine if the number of bidders for a house increased tenfold.
— Hunter Horsley (@HHorsley) February 9, 2024
With many more investors now having easy access to Bitcoin, Horsley says the direction is completely changing. We don’t know exactly how this will turn out, but Horsley expects something positive. According to Horsley, what is certain is that the Bitcoin market has fundamentally changed and can no longer be compared to what it was a year ago.
Changing Bitcoin market structure
David Lawant, head of research at brokerage firm Falcon According to Lawant, the introduction of Bitcoin ETFs has had a positive impact on the market structure and led to a decrease in volatility. Trading volumes around “ETF fix times,” a specific point in time for ETF-related trading activity, have increased significantly, indicating a broader and more stable market. Good for the long-term price of BTC.
The launch of Bitcoin ETFs and the upcoming halving are just some of the factors supporting the current positive trend. As the market structure continues to change with the influx of new types of investors, Bitcoin’s path to new heights could become less volatile and more predictable, which could attract interest from an even wider audience.
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