How Bitcoin Will Perform in 2024?

Although Bitcoin disappointed many investors in 2021 and 2022 it outperformed most of the assets in 2023 by providing a 160% return. The investors are now concerned about how Bitcoin will perform in 2024. Based on 2023’s performance, many analysts are predicting that 2024 will be a bullish year for Bitcoin.

However, some analysts think that the price has already increased a lot. So, Bitcoin may not provide any significant returns in 2024. The following Bitcoin weekly news may shed some light on how Bitcoin is expected to perform in 2024.

Bitcoin Price Prediction by Kaiko Research

Although the financial markets struggled due to technical economic conditions in 2023, Bitcoin experienced a significant price increase of 160%. Kaiko Research has highlighted last year’s performance saying that Bitcoin will outperform most of the major traditional assets. BlackRock’s filing for a spot Bitcoin ETF has been a major driver of Bitcoin this year.

The data provider, Kaiko, has suggested that Bitcoin is not just providing a hedge against inflation but its performance is now influenced by macroeconomic factors as well. Analysts are now observing a complex correlation between Bitcoin and the broader market trends. The data provider has also mentioned that Bitcoin’s prices and liquidity may also be affected by the approval of spot Bitcoin ETFs.

The involvement of major players like ARK, WisdomTree, VanEck, Fidelity, and 21Shares shows that major institutes are now seriously thinking about integrating cryptocurrencies into traditional finance.

Bitcoin Price Update by BitMex Co-Founder

Arthur Hayes, the co-founder of BitMEX, says that the success of Bitcoin ETFs can be devastating for Bitcoin. He says that Bitcoin ETFs will significantly reduce Bitcoin transactions because they’re only supposed to accumulate assets and store them. It will ultimately increase Bitcoin transaction fees because only a limited amount of Bitcoin will be available for transactions.

The miners will eventually be forced to turn off their mining equipment because a majority of people will start using Bitcoin derivatives to accommodate their needs. It may lead to Bitcoin’s demise over time. Following the effects of Bitcoin ETFs, a new crypto monetary network could emerge.

So, it can be a serious warning for those who have been eagerly waiting for the approval of Bitcoin ETF applications.

Bitcoin Warning by SEC Chairman

Gary Gensler, SEC Chairman, has expressed his concerns about the negative impact on investor confidence while issuing warnings about the noncompliance in the crypto industry. Gary highlighted the importance of compliance with securities laws saying that the crypto industry lacks this aspect.

He also said that the crypto market also violates the rules set by other regulatory authorities. He said that ethical actors may struggle to compete with the crypto industry because it has a lot of problems. While most investors are eagerly waiting for the approval of spot Bitcoin ETFs, these warnings may shatter the confidence of some investors.

Former SEC Official’s Comments about Spot Bitcoin ETFs

Although Gary Gensler warned the investors about spot Bitcoin ETFs, John Reed Stark, a former SEC official, says that the SEC will potentially approve a spot Bitcoin ETF. He supported his claim by saying that the SEC is rarely calling Bitcoin ETF filers for updates. It means the authorities are probably satisfied with the documents submitted by the applicants.

He said that the approval of a spot Bitcoin ETF will most probably be the legacy of SEC Chair Gary Gensler. At the same time, he called it a significant potential victory for the crypto market. It’s worth noting that Stark was previously skeptical of the approval but he has reconsidered his stance following the recent developments.

Hong Kong Could be the Next Bitcoin ETF Hub

Hong Kong is actively showing a positive stance towards digital assets. The local authorities have expressed openness to widening access to digital assets. Therefore, the industry leaders think that Hong Kong could be the next Bitcoin ETF Hub. But they’ve associated this statement with the approval of spot Bitcoin ETFs in the United States.

Unlike mainland China, Hong Kong authorities are providing better regulatory clarity for crypto firms. Many virtual asset trading platforms have already obtained licenses due to the city’s clear regulatory environment. However, crypto-related firms need to collaborate with traditional financial institutions to enhance the adoption of cryptocurrencies.

Although there are some serious challenges, the investors are optimistic about the approval of spot Bitcoin ETFs in Asia. So far, the West has operated as the center of gravity for the crypto industry but the industry leaders think that the center may shift to the East following the fast-paced efforts of Hong Kong.

The experts say that the rules and regulations set by the authorities in this region are going to be implemented practically in 2024.

Bitcoin Technical Analysis

The monthly chart of Bitcoin shows strong buying during February and March 2022. After that the price dropped significantly and most investors got stuck. These investors are now either profitable or they’ve reached the breakeven level. Some of these investors may sell their holdings as the price goes above the $48,200 level.

So, the investors may expect a price drop after reaching this level. However, the long-term outlook of Bitcoin seems really good.

Conclusion

As we look ahead to 2024, Bitcoin’s performance remains a subject of intense speculation and diverse opinions. While 2023 showcased an impressive 160% return, contrasting perspectives arise regarding the upcoming year. Analysts foresee a bullish trend, citing Bitcoin’s resilience amid macroeconomic influences.

However, concerns linger, with warnings from figures like Arthur Hayes and SEC Chairman Gary Gensler, cautioning about potential drawbacks tied to Bitcoin ETFs and regulatory compliance. The evolving dynamics, including Hong Kong’s emerging role and shifting industry gravity, underscore the intricate landscape Bitcoin navigates. As the crypto saga unfolds, the long-term potential of Bitcoin appears promising despite the varied forecasts.

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