Even as the price of Bitcoin has floated up and down, attracting attention from investors, some point to a more than $250,000 2024 for the cryptocurrency as a farfetched but potentially achievable goal.
The half life of Bitcoin derives from a complex mix of fundamental factors – Exchange Traded Funds (ETFs) approval, oscillations between hacks and booms, or the haunting two-year ticking clocks of bitcoin halving. That trajectory runs through a dark forest of troubling headlines from the world’s major cryptocurrency exchanges.
The market offers an interesting glimpse into what drives the price of Bitcoin as events from the regulatory news to the technical internal protocol evolutions change the price drastically. The most notable events include a potential approval of the Bitcoin ETF and a first improvement in Bitcoin’s halvening. With the arrival of 2024, investors are likely to pay closer attention to these factors, which doubled or more than doubled Bitcoin’s price already due to 2022 halvening.
In order for its price to skyrocket, something as simple as an approval of a Bitcoin ETF would be needed, which would allow the purchase of a fund that would track bitcoin without the need to physically handle or deal with traditional cryptocurrency, would open up the potential investor pool to those who are more accustomed to investing in funds, rather than dealing with the friction associated with purchasing and storing the underlying asset.
‘Holding’ a Bitcoin ETF would increase demand for bitcoin, and would bring about an increase in price if those who held the ETF wanted to actually own the asset itself. Price movements, as well as regulatory announcements, have historically discovered their way into the price, demonstrating the market’s sensitivity to the attention paid to speculation about ETF approvals.
Bitcoin Halvening Effect
The periodic reduction in the reward for mining new blocks – an event dubbed the Bitcoin halvening – is a preordained aspect of the cryptocurrency’s code. Its occurrence, every 4 years on average, has been followed by marked price spikes. In each of the three previous halvenings, in 2012, 2016 and 2020, the rewards for mining new blocks were automatically halved, from 50 to 25, then to 12.5, and most recently to 6.25 new coins per block. Each adjustment in the reward decreases the amount of new coins flowing into the market over time, making the currency that much more scarce and, perhaps, valuable. Those occasions have each been followed by a marked bull-run in Bitcoin. So, with another halvening slated for 2024, there is a broad expectation among investors that the price of Bitcoin will soar once again.
Macroeconomic Trends Interplay
Over and above these explicit Bitcoin cycles, other general macroeconomic conditions influence the price of bitcoin. Accounts for the variation in value often cite phenomena including inflation, currency devaluation, and general economic instability. This means that a good part of the price is not necessarily related to supply and demand in the internal bitcoin market, but rather dependent on general compliance with its image as a long-term store of value or ‘digital gold’.
Comparison with Other Asset Classes
Bitcoin’s price also behaves differently from traditional asset classes, such as securities, bonds or commodities, as evidenced by higher volatility and a different exposure to factors, such as to technology, regulation and sentiment in the crypto space. Moreover, while Bitcoin was quite correlated with others during the Great Crash of 2020, it separated significantly from the rest during other episodes.
ETF Approval Impact
Depending on where you land, the interplay between this and ETF approval speculation, macroeconomic trends, a Bitcoin halvening in 2024, and the relative value comparison with other asset classes, will all shape where Bitcoin prices will go by 2024. To game the system requires that you become attuned to these factors in order to anticipate where the largest digital store of value in recorded history will perform next. The course is still very much unknown, but the build-up of anticipation already appears bullish, and a target of $1 million a coin seems more and more likely.
Market Speculation
The recent scandals involving FTX and Binance seem to have cast impossibly long shadows over the market, reminding everyone how wobbly confidence can be. This in turn can drown the bullish sentiments that would otherwise allow Bitcoin to reach astrophysical price predictions. Yet the aftermath shows the need for good, clean governance infrastructure within crypto.
While the Bitcoin speculation and predictions are mounting, it is crucial to have a reliable Bitcoin-purchase platform, with a secure exchange experience. Blockforia.com is the top choice for those seeking an easy purchase of BTC to their personal wallet, using credit and debit cards to buy Bitcoin.
Bitcoin and Blockchain Technology
By harnessing its roots in Bitcoin, blockchain is a novel new platform for digital operations that can be made more secure, transparent and efficient than ever before. Uses could be as varied as banking and finance, supply chain management and more. Blockchain’s uses are only as limited as our own imaginations.
Bitcoin Investment Strategies and Risk Management
Figuring out how you might diversify exposure to it as an investment; how you might get some exposure to its incremental gain; or a sensible set of risk-management rules, clearly specified, that govern exposure and exposure to changing conditions, is not obvious.
But if there is one thing that can be said with certainty – with 21st-century digital precision, in fact – it is this: there is no certainty for the price of a Bitcoin. Ever. There can be no certainty for the price of anything, at any time and anyplace, and any claim to the contrary is, by definition, a guess.
The Future of Bitcoin
Though full of speculation about the currency’s future – many believe it is the currency of the future – many people look with trepidation at its volatility. This uncertain future demands a robust and secure platform for buying and storing Bitcoin – be it from reputable exchanges or otherwise.
Blockforia.com
Blockforia.com makes buying bitcoin easy and straightforward with multiple clear ways to buy Bitcoin quickly with your credit card or debit card. Blockforia EOOD is an official EU based cryptocurrency exchange and is registered with the National Revenue Agency in Bulgaria. Blockforia is a trusted website allowing secure buyer and seller transactions that are compliant with regulations.
Conclusion
It is an exciting world of opportunity and dangers that awaits those who delve into the study of Bitcoin and blockchain. While the market for various digital currencies continues to mature, exchange services like www.blockforia.com will gladly help you to safeguard and make the most of your investment or speculation with the comfort of full compliance.
