- Bitcoin has started 2024 on a positive note, hitting a record high of over $73,500, before experiencing a dip to around $63,000. Factors such as technological advances, adoption rates, and global events could potentially trigger a new bull run.
- Other significant influences on Bitcoin’s future price include potential changes in the US Federal Reserve’s interest rate policies and the outcome of Ripple’s lawsuit against the SEC, both of which could significantly impact investor sentiment and market dynamics.
Bitcoin’s 2024 performance and the factors that could trigger a new bull run, including potential changes in US Federal Reserve policies and the outcome of Ripple’s SEC lawsuit.
Bitcoin’s Performance in 2024
Bitcoin (BTC) has had a promising start to 2024, with its price gradually rising in the first quarter and even hitting a new all-time high of over $73,500 in mid-March. However, the past two months have seen a dip, with the asset briefly falling below the $60K mark and currently trading at around $63,000. The future performance of Bitcoin is speculative and depends on several factors such as technological developments, increased adoption, positive investor sentiment, public interest, and geopolitical events.
Potential Triggers for a Bitcoin Bull Run
Two particular elements could trigger a resurgence in Bitcoin’s price: actions from the US Federal Reserve and the outcome of the lawsuit between Ripple and the US SEC. Post the COVID-19 pandemic, the US central bank launched an aggressive anti-inflationary policy, introducing multiple rate hikes that may have halted investments in riskier assets like cryptocurrencies. However, there are indications that the Fed may pivot from this regime later this year, a move that many Bitcoin bulls are hoping for. Lowering interest rates can stimulate the flow of money into Bitcoin by altering investor behavior and adjusting risk appetites, potentially contributing to upward movements in Bitcoin’s price.
Furthermore, a decisive victory for Ripple in its legal case against the SEC could fuel a revival for the cryptocurrency market. Ripple and the SEC entered into a trial phase last month, and some believe Ripple has a better chance of winning due to the three partial court wins secured throughout 2023. A win for Ripple could be seen as a defeat for potential overreach by regulatory bodies like the SEC, boosting investor confidence in the resilience of major cryptocurrencies against regulatory challenges. This could encourage both retail and institutional investors to increase their stakes in cryptocurrencies, including Bitcoin.
Conclusion
Bitcoin’s performance in 2024 has been marked by a record high and subsequent dip, with its future performance hinging on several factors. Changes in the US Federal Reserve’s interest rate policies and the outcome of Ripple’s SEC lawsuit could significantly impact Bitcoin’s price, potentially triggering a new bull run. As the year progresses, these developments will be closely watched by investors and market analysts.
