Bitcoin (BTC) rose about 155% in 2023. With this, Bitcoin ($42,244) closed about 63% lower All-time high ($69,000). And of course, 2024 begins with great excitement for Bitcoin due to the upcoming decision to launch the spot Bitcoin ETF. We also see this reflected in the positive price development.
According to a Reuters report, this could happen as early as January 10 if the changes are implemented in a timely manner. Otherwise, January 15, 2024 is the date. Assuming this is postponed again, March 15, 2024 is the next important date.
What awaits us
Another bull run! Let's go through the list:
i) Has inflation fallen structurally and will there not be a further increase in interest rates? Yes. The current high level of interest rates is expected to last longer than six months.
ii) Is there a prospect of a reduction in interest rates to give companies and private individuals more financial flexibility? Yes, towards the end of 2024.
iii) Isn't unemployment in the United States rising rapidly? No, not yet. This could be an indication of a recession. This is bad for the economy, after all consumers can consume less and that affects the economy etc.
iv) Is the next Bitcoin halving in sight that will increase scarcity? Yes, in April 2024.
v) What is the state of geopolitical tensions in the world? Currently. Ukraine's war with Russia and reduced US support increased pressure on Ukraine. Russia also has significantly more workers in the long term. Tensions between Israel and Iran. Impact on oil and other escalations.
The Impact of the Spot Bitcoin ETF
When it comes to approval, you need to be aware that this opens the doors to institutional asset managers. These include pension funds and insurance companies. In this way, you can achieve a huge influx of investors in the long term, which will also ensure a higher price due to the scarcity of Bitcoin. In the short term, I initially expect euphoria after approval and thus a pump in the price. It will then fall again before larger amounts flow into the market. You can't put a time limit on this, so I'll sit quietly.
What if there is no spot Bitcoin ETF?
Bitcoin does not need the spot Bitcoin ETF to remain successful. Every four years there is a halving that halves the daily new supply. Today it is 900 Bitcoins per day. So after the halving it will be 450. In four years only 225. Bitcoin is here to stay and the price will most likely only increase in the future. So this is not the last bull market!
Is your stomach strong enough?
2024 could well be a very turbulent year. Nobody knows exactly what impact the approval of the spot Bitcoin ETF will have over the next two years. This could be a very impressive bull run. The risk of not having Bitcoin in your portfolio is now greater than the risk of having Bitcoin in your portfolio.
Subscribe to Eenrijkerleven's YouTube channel now and follow Eenrijkerleven on Instagram and/or Twitter.
Post views: 985