By Franklin Smith
- Expectations highlight that Fed can loosen the QT financial measure by 2024, allowing cash inflow back to riskier assets such as BTC.
- Moreover, the BTC network will halve in 2024, setting the base for the next massive bullish run.
Bitcoin rallied towards its $69K all-time high in November 2021, following massive upside actions in the marketplace. Meanwhile, downside trends followed, and this week’s brutal sell-off has the bellwether crypto collapsing toward the $20K lows.
Meanwhile, BTC could not overpower the bearish grip soon due to the ongoing global macro situations. Historical trends suggest that the BTC bullish run emerges every four years. Nevertheless, this time, it could occur one year earlier by 2024. Here are some crucial reasons behind the next BTC upside rally in 2024.
The Macro Perspective
The escalating United States inflation had the Fed Reserve announcing a 75bp rate increase during the FOMC meeting on Wednesday. That translated to the highest rate jump in about three decades, whereas the US inflation explores 40-year peaks.
Fed Chair Jerome Powel proved continued interest rate increases until inflation cools. Such developments by the Federal Reserve will likely mean cash going out of the crypto space to stable assets like bonds. Meanwhile, the United States Ten-Year Treasury Yield ticks at the 3.5% high at this publication.
@tedtalksmacro, a market analyst, believes things might begin turning as regulators will likely start reducing interest rates come 2024. He added that 2024 matches BTC halving. Nevertheless, the outlook remains bleak between now and then until data fades. Beware that BTC has hit new ATHs a year after rallying, according to past halving cycles.
When Will Bitcoin Flourish Again?
It is always challenging to forecast bottoms. Nevertheless, previous chart patterns and historical trends help reach an informed decision. Rekt Capital, a renowned crypto analyst, trusts BTC might dip into a massive consolidation within the coming six months. Moreover, he expects Bitcoin to hover within a constricted range.
Meanwhile, Fidelity trusts BTC is oversold and undervalued at its current level. MicroStrategy CEO and BTC maximalist Michael Saylor said this might be a lucrative entry-level for individuals investing with 4-year goals.