Gracy Chen, the boss of Bitget, thinks she knows what the price of Bitcoin will do in 2024.
The year has started off good, even though the price is a bit lower than it was in December. We can already guess what might happen this year.
- What will happen to Bitcoin in 2024.
- The next time the supply of Bitcoin is cut in half is coming soon.
- Federal Reserve’s money rules
- New technology advancements
- Is 2024 going to be a good year for Bitcoin.
Where will Bitcoin go in the future. What do people think will happen in 2024.
Chen wants to know what will happen to the price of Bitcoin in the next 11 months of 2024.
Chen doesn’t pay attention to the price going up and down. Instead, he focuses on events that might make the price of BTC go up or down during the year.
It found some things that will affect how Bitcoin changes in 2024, after the US starts trading Bitcoin in a new way.
The next time the amount of something gets cut in half is coming soon.
Clearly, we will begin with the halving, which will happen around April.
Chen says that the Bitcoin halving really changes how much Bitcoin is available and how many people want to buy it.
Instead, this shows that when ETFs are approved, more people will want to buy Bitcoin. This will make the demand for Bitcoin go up a lot this year.
We should remember that when the amount of new BTC given to miners is halved, they have to sell less of it to cover their costs. This reduces the amount of BTC being sold, which affects the price. If they make less money, they will definitely sell fewer things.
But if people stop buying, the price may not change much. However, if the new ETFs make more people want to buy BTC, Chen thinks the market could make the price of BTC go up after the April halving, earlier than usual.
The next halving in Bitcoin will happen in April 2024, and it will be the fourth one.
The first event happened in November 2012, and then in early 2013, the price of BTC went up a lot for the first time.
The second event happened in July 2016, but the second major bull run didn’t start until January 2017.
The third event happened in May 2020, and the bull started running in November of that year.
So, the idea is that if people keep wanting BTC in 2024, the price might start going up even before November.
However, we are not sure if the size of this rally will be the same as the big rallies in the past.
The rules the Federal Reserve uses to control the amount of money in the economy.
Another important thing that could make a big difference is the money rules of the main bank in the US, called the Federal Reserve (or Fed for short).
Chen wants us to keep an eye on any changes in US money rules and when they might happen in 2024.
As people start to think the US economy will get worse, experts say it’s likely that the Federal Reserve will lower interest rates, and the yield on 10-year Treasury bonds will also go down.
Even though we don’t know when this will happen, it should be good for investments that involve some risk.
Furthermore, Chen also points out that the value of stablecoins in the market has been increasing for more than a month. This kind of change typically happens after market trends have already started.
New technology advancements
However, there are also some things connected to the technology that Bitcoin uses.
These are good technological changes that help Bitcoin grow and become more successful.
Chen thinks that because of new technology, Bitcoin will keep growing and be important in 2023 as more people see how valuable it is.
More specifically, things connected to the Ordinals protocol like BRC-20 and ARC-20, as well as Realm connected to the Atomicals protocol, and PIPE, need users to use BTC to do transactions. This will definitely make more people want to buy BTC.
Could Bitcoin have a good year in 2024.
If nothing unexpected happens, 2024 could be a good year for Bitcoin.
While there are no guarantees, it seems likely that demand will go up and supply will go down. However, unexpected things could happen.
Also, the drop in value after the new Bitcoin spot ETFs were launched on US stock exchanges has shown that a collapse or big decrease in value isn’t likely for now.
But we should remember that if another unexpected event happens, like the one in March 2020, Bitcoin’s value may go down a lot or even crash.