Although the first half of the year was quite challenging for the price of the BTC, still, the potential for further institutional adoption of BTC made it one of the most potential earning assets in 2023. For one more year, BTC outperformed all other traditional assets on the market. The coin started the previous year at level around $16.7K, while it has ended it at $44.4K. This spread would account for an increase in value of 165% within a year. As of the mid of the year many analysts were stressing a potential drop from $30K down to again $16K, but, the game changer was the announcement of the biggest asset manager in the world, a BlackRock, on filing with SEC for the approval of the first spot BTC ETF. This decision came after many of BlackRock's clients requested a means to take exposure toward crypto assets, and the BTC was the first on the list. Later, BlackRock also filed for an ETH ETF. The price of BTC skyrocketed toward the $45K resistance line, in expectation that potential approval of first ETF in the crypto world will drag significant amount of new funds into the crypto market, and that BTC`s price might easily once again reach its ATH at the $68K. The crypto market is starting the new year waiting for the SEC`s response on filings for crypto ETF of several big players on the Wall Street and new yearly highs for BTC.
Another topic related to BTC`s year 2024 is certainly a BTC halving, which is scheduled for April this year. This event would mean that BTC mining rewards will be halved, which as a consequence reduces supply, but also increases a demand for BTC. At least, it was historically so, and it is to be seen whether the same situation would occur in 2024, impacting the price of BTC.
Macroeconomic environment is another issue that might impact the price of BTC in 2024. As Fed announced it`s expectations for a reduction of reference interest rates till the end of this year, it would certainly increase risk appetites among investors, where BTC holds a prominent place.
While cautious optimism should prevail on the BTC market, still a dose of reserve should be taken when it comes to the regulatory environment. Namely, the SEC made it clear that they want to ensure that the US laws are fully respected by companies within the crypto industry, which might trigger some new lawsuits in 2024 or, eventually, new regulations. Up to now, a regulatory interference on one market was not positively perceived by investors, while such events remain potential risks that BTC investors should be aware of.
Another topic related to BTC`s year 2024 is certainly a BTC halving, which is scheduled for April this year. This event would mean that BTC mining rewards will be halved, which as a consequence reduces supply, but also increases a demand for BTC. At least, it was historically so, and it is to be seen whether the same situation would occur in 2024, impacting the price of BTC.
Macroeconomic environment is another issue that might impact the price of BTC in 2024. As Fed announced it`s expectations for a reduction of reference interest rates till the end of this year, it would certainly increase risk appetites among investors, where BTC holds a prominent place.
While cautious optimism should prevail on the BTC market, still a dose of reserve should be taken when it comes to the regulatory environment. Namely, the SEC made it clear that they want to ensure that the US laws are fully respected by companies within the crypto industry, which might trigger some new lawsuits in 2024 or, eventually, new regulations. Up to now, a regulatory interference on one market was not positively perceived by investors, while such events remain potential risks that BTC investors should be aware of.
