2 January 2024
Analysts have recently focused on Bitcoin’s potential trajectory after its anticipated halving event. Adrian Zduńczyk, a prominent crypto trader, has shared a bullish outlook, suggesting that Bitcoin could soar to new all-time highs post-halving.
Zduńczyk’s projections shared on X, hinge on favorable market conditions and pivotal financial events.
Bitcoin’s Bright Outlook
The beginning of 2024 has already seen a positive trend for Bitcoin, reflecting a growing confidence among investors. Zduńczyk links this optimism to a parallel movement in traditional markets, particularly the S&P 500, expected to deliver a 12.8% return in January.
This positive trend in the stock market is seen as a potential catalyst by analysts for increased capital inflows into Bitcoin, reinforcing the correlation between the cryptocurrency and US stock markets.
3/ With an abnormally strong +12.8% est. S&P return and strong correlation, BTC should get additional reinforcement from bullish stock market outlook.
Besides, #BTC‘s weekly chart shows support @ $30k, with rising 50-week and 200-week trends. Resistance @ $48k-50k.
Also, … pic.twitter.com/Ffh8Mq74OS
— Adrian Zduńczyk, CMT (@crypto_birb) January 1, 2024
The upcoming halving event in April, a significant occurrence in the Bitcoin ecosystem, is another factor fueling Zduńczyk’s bullish predictions. This event, which halves the reward for Bitcoin mining, historically triggers a surge in Bitcoin’s price by limiting the new supply entering circulation.
Analysts like Zduńczyk view this as a key moment that could propel Bitcoin to unprecedented heights. Adding to this optimistic scenario is the mounting speculation surrounding the approval of a spot Bitcoin ETF in the United States.
According to Zduńczyk, this approval could channel trillions of dollars into the crypto market, marking a significant milestone in institutional adoption.
Experts anticipate that the US Securities and Exchange Commission (SEC) may greenlight such an ETF soon, which could have profound implications for Bitcoin’s valuation and market dynamics.
Bitcoin 2024 Trajectory: Analysts Project Sky-High Valuations
Forecasts for Bitcoin’s price in the wake of the upcoming halving and spot Bitcoin ETF approval in the US vary, with some analysts setting ambitious targets. James Butterfill of CoinShares predicts a potential increase to $80,000, while Antoni Trenchev of Nexo foresees a rise to $100,000.
Venture capital firm CoinFund, through managing partner Seth Ginns, sets an even loftier expectation, projecting Bitcoin’s value to range between $250,000 and $500,000 in 2024.
Ginns attributes this to a combination of factors, including the anticipated spot ETF approval in the US and a diminishing correlation with traditional economic indicators like the dollar and real yields.
Bitcoin is experiencing a bullish trend, surpassing a significant threshold by trading above $45,000 for the first time since April 2022. The asset has seen a 6% increase in the past 24 hours and a 6.1% rise over the past week.
Notably, BTC trading volume has witnessed a substantial spike, escalating from $13 billion on Monday to over $33 billion today.
Featured image from Unsplash, Chart from TradingView