Three Factors That Could Propel Bitcoin (BTC) Price to a New All-Time High by 2024
The initial six months of 2024 proved to be highly successful for Bitcoin (BTC), with its value surging to an unprecedented peak of over $73,500 in mid-March. Presently, it is trading at a 115% increase compared to the previous year.
Looking ahead, there are critical factors and upcoming occurrences that could potentially propel BTC to new record highs by the conclusion of this year.
The US Presidential Elections, slated for November, are anticipated to introduce escalated volatility for the primary digital asset. The impending contest will primarily feature the incumbent president and Democratic candidate, Joe Biden, against the Republican nominee, Donald Trump.
Trump has recently positioned himself as the preferred choice for pro-crypto voters, vowing to foster the industry’s growth. He has also committed to bolstering America’s BTC mining activities and has expressed opposition to the launch of a central bank digital currency (CBDC).
Current polls indicate Trump’s lead with 42.3% of the total votes, while Biden trails behind at 40.3%. Recently, Trump narrowly survived an assassination attempt during a public address in Pennsylvania, which led to a positive response in the BTC and broader crypto markets.
The potential impact of Trump’s potential re-election as the 47th President of the United States on Bitcoin’s value remains a topic of interest.
The Federal Reserve’s actions have also been pivotal. In response to the economic upheaval caused by the COVID-19 crisis, the US central bank initiated an aggressive anti-inflationary strategy. This included a series of 11 consecutive interest rate hikes between March 2022 and July 2023, with the current rate standing at 5.25%-5.50%.
Chairman Powell hinted at a possible earlier pivot in the bank’s approach, suggesting a potential interest rate cut after the upcoming FOMC meetings in July and September. A rate reduction could make borrowing money more affordable, potentially driving interest in risk-on assets like BTC and prompting a surge in capital inflow.
Lastly, the Bitcoin halving event that occurred in April this year is worth noting. Happening approximately every four years, the halving slashes the daily issuance of Bitcoin in half. Historically, this event has heralded significant price surges for BTC and the broader crypto market.
Analysts have drawn attention to the fact that BTC’s price peaks have historically occurred a year or more post-halving events in 2012, 2016, and 2020, suggesting the potential for further milestones ahead.
In conclusion, the convergence of these factors sets the stage for potential shifts in Bitcoin’s value and market dynamics as we progress through the remainder of 2024.
