Bitcoin has come a long way since its first recorded price of less than a cent. In December 2023, one Bitcoin was worth roughly $42,000. By March 2024, BTC set a new all-time intraday trading high by breaking through the $69,000 level. The idea that Bitcoin could one day be worth a million dollars per unit, as Sciberras points out, “really shows how far we’ve come”.
Bitcoin’s performance in 2024 depends on a variety of potential bullish and bearish catalysts. Numerous factors, such as institutional adoption, the halving, regulatory changes and macroeconomic trends will influence the price of Bitcoin in 2024.
During 2023, the crypto industry was rocked by a series of enforcements that shook confidence in the sector. The U.S. Commodity Futures Trading Commission filed civil enforcement action against crypto exchange, Binance, and its founder and CEO Changpeng “CZ” Zhao.
However, in November, Binance settled with the U.S. Treasury and Department of Justice, with CZ agreeing to step down and hand over the reins as part of the deal.
Sciberras notes that, most importantly Binance was not accused of misusing customer funds and “did not see a bank run on the exchange.”
“This was one of the best outcomes the market could’ve hoped for, and crypto prices rallied as a result,” he says.
“Binance was a massive gray cloud hovering over crypto, and the settlement is a huge green flag heading into 2024.”
Interest Rates and Bitcoin
Chair of the U.S. Federal Reserve, Jerome Powell, has indicated that the central bank may have reached the peak of its rate hike cycle, which Sciberras thinks could be a catalyst for a Bitcoin rally in 2024.
When interest rates stabilize or fall, cryptocurrencies such as Bitcoin can offer an attractive place for investors to park capital due to its perceived hedge against traditional financial systems and increasing scarcity—especially as the halving approaches in May.
“Estimates forecast three 25-basis-point rate cuts in 2024, a more aggressive outlook than what they have previously signaled,” Sciberras says.
Sciberras recommends investors keep an eye on inflation from the personal consumption expenditures (PCE) price index, as Powell has left the door open for further rate rises if it begins to creep back up.
Bitcoin’s performance in 2024 depends on a variety of potential bullish and bearish catalysts. Numerous factors, such as institutional adoption, the halving, regulatory changes and macroeconomic trends will influence the price of Bitcoin in 2024.
During 2023, the crypto industry was rocked by a series of enforcements that shook confidence in the sector. The U.S. Commodity Futures Trading Commission filed civil enforcement action against crypto exchange, Binance, and its founder and CEO Changpeng “CZ” Zhao.
However, in November, Binance settled with the U.S. Treasury and Department of Justice, with CZ agreeing to step down and hand over the reins as part of the deal.
Sciberras notes that, most importantly Binance was not accused of misusing customer funds and “did not see a bank run on the exchange.”
“This was one of the best outcomes the market could’ve hoped for, and crypto prices rallied as a result,” he says.
“Binance was a massive gray cloud hovering over crypto, and the settlement is a huge green flag heading into 2024.”
Interest Rates and Bitcoin
Chair of the U.S. Federal Reserve, Jerome Powell, has indicated that the central bank may have reached the peak of its rate hike cycle, which Sciberras thinks could be a catalyst for a Bitcoin rally in 2024.
When interest rates stabilize or fall, cryptocurrencies such as Bitcoin can offer an attractive place for investors to park capital due to its perceived hedge against traditional financial systems and increasing scarcity—especially as the halving approaches in May.
“Estimates forecast three 25-basis-point rate cuts in 2024, a more aggressive outlook than what they have previously signaled,” Sciberras says.
Sciberras recommends investors keep an eye on inflation from the personal consumption expenditures (PCE) price index, as Powell has left the door open for further rate rises if it begins to creep back up.
Trade closed: stop reached