The likelihood of a significant price increase in Bitcoin (BTC) by the end of 2024 appears to be increasing, according to a new report from 10x Research, which highlights several factors that could support a potential rally. While 2023 has been a volatile year so far, the report sees a combination of favorable influences in the market.
Important factors
One of the major factors that could positively impact Bitcoin’s price is the expected payouts from FTX. These payouts are estimated to be between $5 and $8 billion. Markus Thielen, founder of 10x Research, states that this could be a catalyst for investor optimism.
“The influx of capital from the FTX payout could positively impact sentiment,” Thielen said. It is possible that a large portion of these payouts will be reinvested in the crypto market by creditors. He also expects the US Federal Reserve to continue cutting interest rates.
“There is a chance that risk assets will rise in value as the Fed appears to have raised the level of the S&P 500 at which they would intervene to protect investors, signaling the possibility of further rate cuts. This will likely cause many investors to rebalance their portfolios heading into 2025,” Thielen said.
Historical patterns and optimism
Another important factor that could drive Bitcoin’s price higher is Bitcoin’s historical performance during the months of October to March. This period is often known for price increases, as seen in the years 2014, 2017, and 2021. The report speculates that this pattern may repeat itself again in the period of October 2024 to March 2025.
Thielen is optimistic about Bitcoin’s future. Last month, the analyst predicted that BTC could drop to $40,000 before the bull market resumed. Fortunately, Bitcoin didn’t drop that far, and Thielen now sees reason for hope again. However, he emphasizes that the peak level of the previous cycle, around $68,000, remains a crucial point. According to Thielen, a lot of volatility can be expected around this level.
Source: https://newsbit.nl/kans-op-gigantische-koersstijging-van-bitcoin-btc-tegen-eind-2024-neemt-toe/
