There are three factors driving enthusiasm for Bitcoin and one of the three…
There is a combination of factors that could make 2024 an absolute year Explosive regarding the price of Bitcoin and its importance as an asset. No, no one here is talking about skyrocketing prices over a period of a few weeks: that is a more complex discussion that we invite you to follow and also come to discuss on our Telegram channel.
On the one hand there are ETFs, which we talked about a moment agobut there is also a halving and there are also interesting grayscale movements – and not only in sense emptiness of NAV with the value of shares (we will talk about that soon).
A lull is returning, although the general enthusiasm is extremely dubious for those fresh out of the tear-and-blood bear market. Let’s take a look together at the factors that, at least in our opinion, could confirm the bullish thesis about BTC.
First point: halving
Bitcoin has a predefined monetary policy, which halves the newly produced Bitcoins, those issued with each new block, every approximately 4 years. Without going into details as for the impact on the price of Bitcoin in previous cycles, it will be enough to know that there will be fewer new ones Bitcoin for miners, and that they will therefore have to cover their costs by exerting less selling pressure.
Second point: ETFs
Are market prices part of the enthusiasm? Probably yes. However, it is equally likely that there will be a significant amount of capital trying to get hold of the fund’s shares.
These funds will necessarily have to buy Bitcoin in the market and will therefore have to exert upward pressure. Whether we are talking about 14 billion or 20 billion for the first year, it will be a good incentive.
Third point: Gray tones
Grayscale, then controlled by Digital Currency Group, manages a huge fund that will most likely succeed in converting to an ETF.
On this particular point, there is something that is not being talked about: Digital Currency Group holds many shares of the fund itself and is also a group that is in various troubled situations with its subsidiaries.
The conversion into an ETF could give the group a big role in completing the recovery process to which we will devote a special topic and which we believe is one of the potentially most important events.
When every news seems like good news
Sentiment is back to what it used to be: every kind of news seems to be interpreted in a positive way, even if in other circumstances there would be negative effects on the market.
This is one of the clearest signs bull market or in any case the fact that we are approaching that state of grace that delighted the wallets of many in 2021.
The arguments above are pretty solid. We’ll see if Bitcoin responds the way “everyone expects”.