The prevailing perception as of late 2023 is that Bitcoin (BTC) is decisively on its way up. The world’s largest cryptocurrency started the year at only $16,000 after the crypto market was largely eviscerated in 2022, but many pointers now indicate that the long “crypto winter” is definitely over.
The rally saw Bitcoin rise significantly in just a few months, meaning that it appears in hindsight that it would’ve been an excellent buy in early October at $27,000 or even on December 10 at $41,000, as it is now, mere days from the New Year, hovering closer to $44,000.
In fact, BTC is more than 160% in the green year-to-date at the time of writing.
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While the current price is dear, especially compared to where BTC stood on January 1, 2023, determining whether it is a good buy for 2024 requires looking at the wider trends in the crypto market, as well as the specific things in store for the world’s foremost cryptocurrency.
A real chance for a new all-time high
The crypto market as a whole currently appears to be in a fairly good state. Recent market moves have sparked renewed investor enthusiasm, and while volatility and downturns driven by profit-taking persist, there seems to be a general consensus that cryptocurrencies are indeed on their way up again.
The enthusiasm and interest are also reflected in a recent poll commissioned by Grayscale, which found that as many as 40% of American investors believe they will eventually have crypto in their portfolios and that as many as 70% of voters desire a candidate who is knowledgeable about blockchain and other innovative technologies like artificial intelligence (AI).
Additionally, while Binance’s settlement with the U.S. authorities came with a hefty price tag, and while Sam Bankman-Fried can’t be too happy about the prison sentence he received, it would appear that at least some of the regulatory and legal uncertainties that plagued the industry are clearing up.
Zooming in on Bitcoin itself, there are several notable future events that are either guaranteed to take place in 2024 or almost guaranteed. The first prominent one is that, according to experts, the U.S. is almost certain to finally approve a spot Bitcoin exchange-traded fund (ETF) in January.
Bitcoin is also scheduled to undergo a halving relatively early in 2024. Historically, halvings served as harbingers of major Bitcoin rallies and commonly preceded new all-time highs. According to multiple analysts, including the expert Rekt Capital on X, BTC’s pre-halving performance is as strong – if not even stronger – as would be expected.
Still, there are few guarantees in life and even fewer in the crypto market, and it is hard to tell whether the current thaw is just an Indian Summer or a genuine digital assets spring.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.