Will Bitcoin Price Rally to $48,000?
It was highlighted in last week’s Bitcoin weekly news that Bitcoin may remain sideways for a few days leaving room for altcoins to grow. Last week’s data shows that some altcoins like ICP, ADA, SOL, and AVAX offered amazing returns while Bitcoin remained sideways. Investors are now expecting higher targets for Bitcoin once the altcoin season ends.
The following Bitcoin weekly news may provide a better idea about whether Bitcoin price will rally to $48,000 or not.
Bitcoin Could Reach $160K in 2024
The analysts are expecting a Bitcoin bull market in 2024 and they’ve predicted that Bitcoin could reach as high as $160K during its upcoming bull run. The analysts have highlighted the historical rallies that took place following the Bitcoin halving events. They’ve also supported their claim with other factors like the expected approval of spot Bitcoin ETFs and an overall positive outlook for financial markets.
The analysts also suggest that the ongoing discussion between SECO and major financial players is a huge development for Bitcoin. Although analysts are highly confident about positive momentum, they have also warned investors about short-term price corrections. Bitcoin’s price has already increased by 180% during 2023. So, investors need to think carefully before buying Bitcoin or any other cryptocurrency.
Spot Bitcoin ETF maybe a Nightmare for Crypto Exchanges
Many investors are eagerly waiting for the approval of a spot Bitcoin ETF. Some analysts have claimed that the approval of a spot Bitcoin ETF will drive Bitcoin’s price to $100,000. Some are even expecting higher targets for Bitcoin. But the crypto exchanges may experience a significant decline in their liquidity because bigger investors will prefer moving their funds to spot Bitcoin ETF after the approval.
The crypto exchanges charge relatively high trading fees whereas spot Bitcoin ETFs will offer a reputable platform with lower commissions. Currently, the crypto exchanges are charging up to 0.6% for trade execution. On the contrary, a spot Bitcoin ETF will charge only 0.01%. Although crypto exchanges reduce their fees based on transaction size, trading pairs, and other factors, they still can’t outperform the spot Bitcoin ETF.
The crypto exchanges will eventually reduce their advertising and other additional expenses because they will potentially lose a huge number of customers due to high fees. It’s worth noting that transaction fees cover a significant portion of overall revenue for crypto exchanges. So, the centralized crypto exchanges may experience a bloodbath following the approval of spot Bitcoin ETFs.
BlackRock has Revised the Spot Bitcoin ETF Proposal
BlackRock is one of the leading names in the race for spot Bitcoin ETF approval. The company has revised its proposal several times to meet the requirements of the SEC. In this new update, the company has updated cash creation and redemption mechanisms to comply with the SEC’s suggested model.
SEC raised concerns about market manipulation and investor safety when BlackRock proposed the in-kind redemption model. Blackrock has updated its redemption model to improve the likelihood of approval. The analysts are expecting a decision about several spot Bitcoin ETF applications in January.
Other applicants are also updating their proposals to meet the SEC’s requirements before they announce their decision.
Bitcoin Price Prediction by Michael Saylor
Michael Saylor, the Executive Chairman of MicroStrategy, has shared his comments about spot Bitcoin ETFs in a recent Bloomberg TV appearance saying that it has the potential to become the biggest development on Wall Street in the last 30 years. Like several other experts, Saylor believes that a huge number of mainstream investors will come to the crypto landscape after the approval.
The upcoming supply shock (2024 halving) and the anticipated increased demand will significantly affect Bitcoin’s price in 2024. He also responded to the questions about the impact of spot Bitcoin ETF approval on MicroStrategy saying that he doesn’t consider it a threat to his company.
He said that the company will still enhance its bitcoin holdings using its cash flow or ‘intelligent leverage’.
Bitcoin Price Update by Grayscale CEO
Michael Sonnenshein, the CEO of Grayscale, has stated that Bitcoin ETFs have the potential to draw $30 trillion in investment once they’re approved. Grayscale is one of the leading companies that are awaiting approval of their ETF applications. Bitcoin’s price may reach $1 million after the approval of spot Bitcoin ETFs.
Anthony Pompliano is also confident about an ‘ultra bullish’ move after the approval of Bitcoin ETS. But he thinks that it won’t happen overnight.
Bitcoin Weekly Technical Analysis
On a weekly chart, Bitcoin’s price is still bullish and there aren’t any significant chances of a decline. It was mentioned last week that Bitcoin may remain rangebound for a few days. As it can be seen on the chart, Bitcoin’s price has built a bullish pennant on the daily chart. The interesting part is that the price drops slowly but recovers immediately.
So, it supports the fact that Bitcoin’s price may continue increasing in the near future. However, it may again struggle for a few days to leave some room for altcoins.
Conclusion
Bitcoin’s recent sideways movement has allowed altcoins like ICP, ADA, SOL, and AVAX to shine. Analysts predict a bullish market in 2024, with Bitcoin potentially reaching $160K, citing historical rallies and positive market outlooks. The approval of a spot Bitcoin ETF is eagerly awaited, with expectations of a surge to $100,000 or more.
However, concerns arise for crypto exchanges, as the ETF’s approval may lead to a decline in their liquidity. BlackRock’s revised proposal and endorsements from figures like Michael Saylor and Grayscale’s CEO contribute to the optimism, but caution is advised due to potential short-term corrections.
We invite you to subscribe to our weekly newsletter if you need regular updates about Bitcoin and the crypto market.