Approval of Bitcoin ETF applications and Bitcoin Halving are both on the table for 2024. There is no reason to guess that if both, or even one, factors follow through, then it will impact the price of Bitcoin.
While the ETF will enable asset managers to navigate the investments of their clients, Bitcoin Halving 2024 will cut down the supply to boost the price rise of BTC. Predictions are that the token may inch closer to its ATH and then go for the $100k mark by the end of 2024.
To be more realistic, ATH is achievable by the end of the year, assuming the halving process happens with the same hype with which the ETF is happening.
Historical trends showcase that the graph follows price retracement before the halving process. That cannot be mistaken for a fall or the start of bearish sentiments. BTC recovered strongly following the conclusion of the supply cut. Take it from 2015 and 2016, when the fall was 18% and 40%, respectively. Plus, 2020 saw a dip of 63% before the price rallied with an upward trajectory.
It is difficult to predict how much the BTC price will decline because sentiments dominate.
Traders tend to react instantly when the price goes up, potentially selling to earn profits and avoid getting trapped in another bearish cycle. Alternatively, an accumulation reaction when prices fall triggers optimism, which may not end nicely for everyone.
BTC experienced the effect of a market crash at the beginning of 2024 after Matrixport hinted at the rejection of the ETF applications by the SEC. It was down to almost $41,000. The token has now recovered and is exchanging hands at $46,862.45, a jump of 6.69% in the last 24 hours. Bitcoin prediction estimates that the token can end this year at somewhere around $57k. It also supports the possibility of surpassing the highest value of $65k in 2024.
A practical support level is $38,000; falling below that mark will signal a stronger fear of not reaching the desired goal. That is a far-fetched reality since the comeback to the recent crash is stronger.
By January 10, 2024, ETF applications are anticipated to have been approved. This will authorize asset managers such as BlackRock to administer products related to Bitcoin on the platform. The Bitcoin halving is slated to take place in the middle of the current year.
Both factors may cause an increase in the price.
As for the ETF, select analysts have come forward to say that the SEC may not approve applications this time but will eventually approve them by the second quarter.
The actual date is fast approaching, leaving the community to wait and see how things actually roll out. Halving will follow the ETF incident, giving the Bitcoin community another thing to look forward to this year.
