The day after of Christmasthe cryptocurrency market, in particular the bitcoinreflects the tranquility of the season, but does not escape the inherent volatility of its nature. The current price of BTC is around US$42,700 marking an increase of 0.1% in the last 24 hours and 5.7% in the last seven days.
Thus, Bitcoin continues to reign as the dominant cryptocurrency, with a staggering market capitalization of approximately $844.39 billion and a circulating supply close to 19.58 million BTC out of a maximum of 21 million.
However, the question that arises is how the BTC rally will continue. There are five important signs that indicate that the leading cryptocurrency could continue its upward movement in 2024.
Signal 1: The possible approval of BlackRock’s Bitcoin spot ETF
The possible approval of a Bitcoin spot ETF by the United States Securities and Exchange Commission (SEC) would be an important sign that the cryptocurrency market is maturing and gaining acceptance from institutional investors.
BlackRock, the world’s largest asset manager, has expressed interest in launching a Bitcoin ETF, which could trigger a wave of institutional demand.
Signal 2: 70% of Bitcoin Supply Hasn’t Moved in a Year or More
On-chain data shows that the majority of Bitcoin holders did not sell their holdings even as the cryptocurrency’s price hit all-time highs. This indicates that there is strong demand for Bitcoin among long-term investors.
Signal 3: CME Group surpassed Binance in terms of trading volume in the derivatives market
Open interest (OI) in Bitcoin futures on the Chicago Mercantile Exchange (CME) recently surpassed OI on the world’s largest cryptocurrency exchange, Binance. This is the first time CME has outperformed Binance since the 2021 bull market, indicating growing institutional interest in the Bitcoin market.
Signal 4: Whales continue to accumulate BTC
Whales, or investors who own large amounts of Bitcoin, have continued to accumulate BTC in recent months. This indicates that institutional investors are convinced that the price of Bitcoin will continue to rise.
Signal 5: Bitcoin Chart Follows Historical Patterns
Technical analysts point out that the current Bitcoin price chart exactly repeats the parabolic growth seen in previous four-year cycles. This suggests that the Bitcoin rally could continue in the coming months.
In conclusion, There are five important signs that indicate that the Bitcoin rally could continue in 2024. The possible approval of BlackRock’s Bitcoin spot ETF, strong demand for Bitcoin among long-term investors, growing institutional interest in the Bitcoin market, accumulation of BTC by whales, and following historical patterns suggest that Bitcoin price could hit new highs in the coming months.
In addition to the five signals mentioned above, there are other factors that could contribute to Bitcoin’s rally in 2024. These include:
- The growing adoption of Bitcoin by businesses and governments.
- The scarcity of Bitcoin, as only 21 million coins can be mined.
- Inflation, which could make Bitcoin more attractive as a store of value asset.
However, it is important to note that the cryptocurrency market is volatile and the price of Bitcoin could drop at any time. Investors should do their own research before investing in Bitcoin or any other cryptocurrency.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
