Bitcoin ushers in 2024 with a continuation of the rally that began last year and surpasses $45,000, the highest level in nearly 21 months, dragging other cryptocurrencies along with it and continuing a ride that over the course of 2023 has earned it more than 160 percent.
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Possible U.S. green light to spot Bitcoin ETF
The market continues to bet on the Securities and Exchange Commission’s (Sec) green light for the first Etf to invest in the leading cryptocurrency. Indeed, by Jan. 10, the U.S. Securities and Exchange Commission will have to decide whether to approve the application submitted jointly by 21Shares and Ark Investment.
Namely, the lead of a dozen asset management firms-including BlackRock, Invesco, Fidelity, and WisdomTree-that have applied to launch Etfs that will directly buy and hold Bitcoin, increasing demand for the asset.
This would allow investors to purchase a product that tracks the price of bitcoin without having to directly own the cryptocurrency.
The digital asset market: a year of crucial turning points
The year 2024 promises to be a defining period for Bitcoin and crypto-assets. The prospect of new highs for Bitcoin, surpassing the $69,000 mark in November 2021, – according to CheckSig’s forecasts – looks like a tangible possibility, despite anticipated volatility and possible retracements.
Some analysts even advance the bold prediction of exceeding $100,000. The horizon of 2024 looms under the banner of a bullish trend in the cryptocurrency market.
The market outlook is further fueled by the prediction that interest rates will decline in 2024, creating a favorable investment climate for digital assets.
Regulatory clarity driving growth
Growing adoption in Europe signals increasing acceptance of cryptocurrencies as a legitimate asset class, both by institutional and private investors.
Italians, for example, held nearly two billion euros on licensed operators at the end of June, which certainly rose as the market grew in the second half of the year. In this context,” CheckSig analysts note, “the market particularly rewards clean-up operations in the sector. Regulatory interventions in the United States have confronted and condemned fraudulent players such as Sam Bankman-Fried’s FTX and Changpeng Zhao’s Binance.
This helps instill confidence in sustainable growth that is immune to scandal and fraud. 2024 also marks the entry into force of MiCA (Markets in Crypto Assets), providing a clear European regulatory framework.
Read also: Bitcoin mining: what is it and how the process of validating new tokens works
