Which Way will Bitcoin Go in 2024?
2023 rolled in on the heels of a monumental crypto disaster, when the FTX exchange went down in flames. Perhaps surprisingly, the year ended up marking a recovery for beleaguered digital assets, with Bitcoin gaining as much as 157%. Traders knew the SEC (Securities and Exchange Commission) in the US might give the green light to spot Bitcoin ETFs in the second week of 2024, which was viewed as a potential catalyst for prices. They also knew that the Fed couldn’t keep hiking interest rates forever, and that a looser monetary environment could offer risk assets a healthy push.
As things turned out, Fidelity Investments’ and Blackrock’s long-awaited ETFs were finally born on January 11th, 2024, immediately urging token prices towards the region of the “good old days”, at $49,021 per coin. And then, as many had predicted, prices underwent a serious correction, losing 20.5% within 12 days. “This type of correction after a significant run-up is normal for Bitcoin”, explained Greg Moritz of AltTab Capital. After all, the SEC approval had surely been baked into prices for some time before January 11th.
Was this drop in prices, then, a mere hiccup in Bitcoin’s inevitable ascent to legitimacy, institutional adoption, and ever-more-ridiculous token prices? Many people think so, for instance Polymesh’s Graeme Moore, who views SEC approval as the breaking of the dam wall that was holding back institutional funds from crypto. For Moore, it’s straightforward that the new ETFs will reinforce the powers of demand in their matchup with supply, which will propel prices higher. “$100,000 per Bitcoin by end of 2024”, pronounces Moore unflinchingly.
But is there a sound case to be made against all this bullishness, looking ahead to the new year?
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