The Bitcoin price is facing extreme pressure from both the bulls and the bears as it lingers between $30,000 & $31,000, without surpassing any of these levels. The growing stress over the token is expected to wane as an extended compression may lead to a massive explosion. While the direction of the rally may be ascertained depending on the volume dominant at that time. However, no major price action is expected to occur in 2023, as the trend could remain consolidated for another few weeks.
As seen in history, the crypto markets usually inculcate huge bullish momentum as the trade approaches the end of the year. This usually happens if the price is not in the middle of a bear market, or if bears have drained the market, restricting the price below certain levels. Therefore, the BTC price, which has been maintaining a notable upswing since the beginning of the year, is expected to maintain a fine range of highs and lows till the end.
This could trigger a bull run that may intensify in 2024 to mark new highs. Alongside this, some of the catalysts may also fuel the rally and help to maintain its strength throughout the year.
Bitcoin Halving 2024
The star crypto, Bitcoin, is set to undergo a halving event in March-April 2024, where the miner’s rewards are halved. This event is considered one of the most important for the crypto markets, as there is a huge chance of triggering a bull run. The miners receive fewer rewards, so less BTC will be released for circulation. This keeps up the scarcity of the token, pushing prices higher. Historically, the BTC price has been reacting positively after each halving in the past and maintaining a steep upswing for the next 12 months to form a new ATH. Hence, a similar price action is expected after the 4th-Bitcoin halving in 2024.
Bitcoin ETF Approvals
Just a month ago, the crypto space was stuck under extreme bearish influence, which was triggered by the SEC suing the top two exchanges, Binance and Coinbase. Soon after this, the industry giants like BlackRock, Fidelity Investments, ARK Investments, Invesco, WisdomTree, Bitwise Asset Management, and Valkyrie filed for a spot in Bitcoin ETF which triggered a huge upswing. However, the filed ETFs are under process and could be reviewed and considered for approval in the coming days. Expects believe the approvals may not happen anytime before 2024 and hence this is the major catalyst to trigger the 2024 bull run.
US Presidential Elections 2024
The US Presidential elections are scheduled to be held on November 5, 2024, to elect the new President and Vice-President of the country. In times of crucial events, the crypto markets as well as the traditional markets remain highly uncertain, as the next price action depends on the results of the election. A change in government indicates a change in policies, rules, and regulations, which may be in favor of or against the crypto space. Therefore, the US Presidential elections may play a major role in pumping up the 2024 bull run.
Source: https://coinpedia.org/bitcoin/top-catalyst-that-may-fuel-crypto-bull-run-in-2024-market-cap-expected-to-hit-5t/