NOIDA (CoinChapter.com)—Bitcoin (BTC) price recently broke its previous record to chart a new ATH near $69,200 on March 5. The rally reignited speculations that the BTC could find catalysts to a six-figure price tag in 2024, a long-awaited milestone for the prime cryptocurrency.
Bitcoin has a flurry of bullish cues that would likely help BTC continue its bull run, which has seen the token chart consistent monthly gains since Sept. 2023.
However, the risks of Bitcoin hitting a bearish patch remain, as not every analyst is convinced the token will continue charting new highs and enter price discovery.
1. Bitcoin ETF accumulation
The launch of spot Bitcoin ETFs created massive buying pressure for the token, with the investment giants gobbling up BTC tokens by the buckets.
A spot Bitcoin ETF has made Bitcoin investment accessible to a broader audience, including those who prefer traditional investment vehicles over opening accounts with cryptocurrency exchanges. Furthermore, the hype from the spot Bitcoin ETF launch also attracted buyers.
The UTXO, or Unspent Transaction Output model, represents the pieces of Bitcoin that users control and can spend if they have the corresponding private key.
A growing UTXO set might suggest increased usage and transaction volume, potentially increasing Bitcoin’s price due to heightened demand. Independent financial analyst Timothy Peterson speculated that the spot Bitcoin ETF-fueled accumulation could lead to a $100,000 price tag for BTC.
Bitcoin Halving: The Catalyst Everyone’s Waiting For
Bitcoin halving is an event that aims to increase the token’s scarcity by slicing mining rewards in half. Historically, halving events have been bullish catalysts for BTC prices.
Although BTC has undergone a notable price surge following each halving, the rally does not typically occur immediately but unfolds over the months following the event. Furthermore, BTC price has reached a new ATH after each halving event.
Reductions in block rewards tend to tighten supply. Coupled with the recent surge in Bitcoin demand, the upcoming halving could become a bullish catalyst for the token. Moreover, several analysts have highlighted Bitcoin halving as a key catalyst behind their predictions of a $100,000 per BTC price tag.
Rate Cut Expectations in September 2024
Federal Reserve Chairman Jerome Powell testified to a House panel on March 6 that the US central bank had no plans to rush into rate cuts. The speech caused Bitcoin’s price to correct slightly before resuming its rally.
However, bullish BTC proponents noted that Powell had not dismissed the chances of a rate cut in 2024, only delayed predictions. Several analysts, including those at Goldman Sachs, have shifted their Fed rate cut deadlines to June from March, citing the recent FOMC meeting minutes.
The CME Fed watch tool forecasts that the first substantial rate cuts from the Fed could come as late as Sept. 2024.
Historically, higher interest rates strengthen the US dollar, potentially making investments in assets like Bitcoin less attractive than yield-generating assets. Hence, a rate cut could act as a bullish catalyst for the Bitcoin token.
Moreover, a September rate cut would align perfectly with Peterson’s forecast of Bitcoin reaching $100,000 in Oct. 2024. The rate cut might even become the necessary catalyst pushing Bitcoin price closer to the price tag.
