Why Bitcoin Could Surge in Late 2024: Key Drivers to Watch
Bitcoin's price could surge in late 2024 due to the halving event, increasing spot Bitcoin ETF inflows, and growing political support. Here's why it might rise soon
Bitcoin has shown remarkable growth in 2024, with a 47% increase year-to-date. Despite hitting an all-time high in March, the cryptocurrency has experienced volatility, raising questions about its future performance. However, three key factors—the delayed impact of the April halving, sustained investor inflows into spot Bitcoin ETFs, and growing political support—suggest that Bitcoin could regain its bullish momentum in the second half of the year.
Strong Performance in 2024
Bitcoin (BTC) has experienced a notable increase of 47% so far in 2024. Despite this impressive growth, the cryptocurrency has shown some volatility since reaching an all-time high of $73,750 in March. Following this peak, Bitcoin's value has fluctuated, even dipping below the $54,000 mark at one point. However, several factors suggest that Bitcoin could regain its upward momentum in the latter half of the year.
The Bitcoin Halving Effect
The Bitcoin halving event on April 19 was initially expected to trigger a significant price surge. Contrary to these expectations, Bitcoin's price did not immediately skyrocket, causing some investors to doubt the halving's impact. However, historical patterns from the 2020 halving indicate that the effects can be delayed. In 2020, it took nearly five months for Bitcoin to rise dramatically from $10,000 in October to $65,000 in April 2021. While past trends are not definitive predictors of future outcomes, there is still time for the recent halving to influence Bitcoin's price positively.
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Influence of Spot Bitcoin ETFs
The launch of spot Bitcoin exchange-traded funds (ETFs) generated substantial interest earlier in the year. Although the initial excitement diminished by May and June, investor inflows remained positive throughout July and are anticipated to continue into August. Institutional investors, including pension funds, endowments, and sovereign wealth funds, are expected to contribute significant capital to Bitcoin, potentially driving a price recovery.
Growing Political Support
Political backing is another crucial factor supporting Bitcoin's potential rebound. Prominent figures such as former President Donald Trump, who previously criticized Bitcoin, are now advocating for it. At the Bitcoin 2024 event in Nashville, Trump suggested creating a strategic Bitcoin reserve for the U.S. government. Other notable supporters include Robert F. Kennedy Jr. and U.S. Senator Cynthia Lummis, who proposed that the U.S. Treasury acquire 1 million Bitcoins. This political endorsement could positively impact Bitcoin's market value.
Future Outlook for Bitcoin
Despite the possibility of shifting public sentiment and political challenges, there is considerable optimism about Bitcoin's future. Investment firm Bernstein maintains its prediction that Bitcoin could reach $200,000 by 2025. With the halving's delayed impact, sustained investor inflows into spot ETFs, and increasing political support, Bitcoin is well-positioned for a potential price rebound in the second half of 2024.
Also Read: Crypto Market Shake-Up: Expert Predicts Stability by October
