As an experienced financial analyst with a deep understanding of the crypto market, I am confident that the second half of 2024 will bring about a significant bull run for Bitcoin. The recent milestones, such as the approval of a spot Bitcoin ETF in the U.S., Bitcoin’s fourth halving event, and the potential launch of a spot Ethereum ETF, have laid the groundwork for this trend.
The opening half of 2024 witnessed extraordinary growth for the broader crypto sector. Notably, Bitcoin experienced several pivotal advancements. In the United States, a Bitcoin spot ETF received approval. Additionally, Bitcoin underwent its fourth halving event. These accomplishments propelled Bitcoin’s price to surge by over 60% year-to-date, with the digital currency currently trading merely 8% beneath its most recent peak of $73,750.
Moving forward into the second half of 2024, there are several factors that could continue and potentially intensify Bitcoin’s price surge, aiming for the significant mark of $150,000.
1. Bitcoin’s Halving Yet to Impact Price
On April 20th, the Bitcoin mining network underwent its fourth Halving, resulting in a decrease in rewards for miners from 6.25 Bitcoins per block to 3.125 Bitcoins. This change affects the amount of new Bitcoin entering circulation and with growing market demand, Bitcoin is set for a potential price recovery.
The Bitcoin market has shown little movement since the halving, suggesting a prolonged period of consolidation. According to well-known trader Rekt Capital, a weekly closing price above $71,500 could initiate a breakout from Bitcoin’s current price range. Nevertheless, historical trends hint that Bitcoin may continue to trade within this range for an extended timeframe.
#BTC
If the weekly candle closes above $71,500, it’s likely that this price level will trigger a breakout from the current re-accumulation range.
Based on historical trends, I would analyze that Bitcoin may need to spend a few more weeks consolidating within this Re-Accumulation Range before continuing its price movement.
Extended consolidation here would get Bitcoin closer to…
— Rekt Capital (@rektcapital) May 21, 2024
Extending the consolidation period would bring Bitcoin back in line with its past halving patterns, which have often been followed by robust bull markets. The current period of price stabilization is approximately 190 days long, shorter than the mid-March cycle of around 260 days.
2. Crypto Adoption Through ETF Launching
I experienced an exciting turn of events on January 11th when the first ten Bitcoin ETFs began trading in the US market. This development led to a surge of new investments, and I wasn’t an exception. The effect of this milestone was palpable as the BTC price rallied in February, hitting a record-breaking high of $73,750 by March.
The attention of investors has been directed towards the approval process for a spot Ethereum Exchange-Traded Fund (ETF) in the United States. Although the Securities and Exchange Commission (SEC) has given its green light to an ETH ETF, the securities issuers must still obtain approval for their registration statements before any trading activities can begin.
As a crypto investor, I believe that the Ethereum ETF could bring more clarity than the Bitcoin ETF when it comes to the emergence of similar financial products for other altcoins. This anticipated development is expected to greatly boost the adoption of cryptocurrency assets as a whole, which in turn could strengthen the overall market trend and contribute to increased stability and growth within the crypto space.
3. Upcoming U.S. Election Could Bolster Bitcoin Price Bull Run
As a market analyst, I believe that the upcoming U.S. presidential election could potentially serve as a major catalyst for a bull run in the cryptocurrency market. With Republican candidate Donald Trump expressing increasingly strong views in favor of the crypto industry, there is a clear contrast to President Biden’s policies. This divergence could lead to increased investor confidence and potential price growth in the cryptocurrency sector.
Trump has expressed a favorable view towards cryptocurrency businesses, advocating for the US to take the helm in this rapidly growing sector. In his post on Truth Social, he declared, “I hold a optimistic and receptive stance toward cryptocurrency firms and all aspects related to this emerging industry. It’s crucial that our nation sets the pace in this field and there’s no room for competition.”
In simpler terms, supporting pro-crypto policies can lead to new inventions, bring in more financial backing, and establish more definite rules for regulation.
4. Interest Rate Cuts and Monetary Policy
As a crypto investor, I believe that the Federal Reserve’s anticipated interest rate reductions in the second half of 2024 could create a beneficial macroeconomic climate for Bitcoin. Lower interest rates usually encourage investors to put their money into riskier assets like Bitcoin. Moreover, given the current inflation and significant federal debt levels, it seems likely that the Fed will continue to employ an accommodative monetary policy. This accommodative stance makes Bitcoin even more attractive as a hedge against inflation.
5. Reversal Pattern To Bolster Porlong Bitcoin Rally
Examining the day-to-day price chart for Bitcoin reveals an inverted head and shoulders formation. This technical pattern, which typically emerges near market lows, strengthens the case for a durable uptrend once the price breaks above the neckline.
At the deadline for this report, Bitcoin’s price had reached $68,080 and held a market value of $1.341 billion. Based on historical trends, investors may anticipate a significant correction to form the right shoulder in the chart configuration. This potential decline could mark the final pullback before the cryptocurrency experiences a substantial breakout above its previous peak at $73,750.
Conclusion
As a researcher studying the Bitcoin market, I believe that the combination of several key catalysts is poised to ignite a substantial bull market. These elements include the halving event, the introduction and growing popularity of spot Exchange Traded Funds (ETFs), accommodative monetary policies, the November elections, and favorable price trends. As these factors unfold, Bitcoin’s value may experience a parabolic surge, potentially reaching impressive heights around $150,000.
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2024-06-02 11:38