A Christmas Rally And Other Major Factors Tailwind Bitcoin Price To New ATH
Bitcoin price has rallied nearly 70% in two months as bulls strongly push prices above key support levels, making the YTD rally to 175%. Traders are now anticipating another upside move and closing this year near $50,000 as BTC price is now down 39%. Santa Claus Rally and other major factors confirm that Bitcoin and the crypto market will reach a new all-time high (ATH) in a few months. A Christmas Rally And Other Major Factors Set Bitcoin Price ATH
Bitcoin Price Set For New ATH
Fed Plans Three Rate Cuts in 2024
Firstly, Traders, retail investors and institutional investors are now confident about their next move as the U.S. Federal Reserve kept interest rates unchanged in the FOMC meeting. Fed Chair Jerome Powell announced the intention for three rate cuts in 2024, as inflation cools gradually towards the 2% target.
Crypto expert and BitMEX co-founder Arthur Hayes suggests there is no excuse not to be long on crypto. He reiterates that Bitcoin price will hit $1 million and cited a Bloomberg report on traders going all in response to the monetary policy pivot in 2024.
“How many more times must they tell you that the fiat in your pocket is a filthy piece of trash. Believe in the Lord, and he shall set you free,” said Arthur Hayes.
US Treasury Yield and Dollar Fell
Secondly, 10-year US Treasuries yield fell below 4% for the first time since August, renewing the bullish sentiment. Moreover, the US dollar index (DXY) fell to 102.28 as the central bank turns dovish despite inflation still above the 2% target.
Bitcoin price moves in opposite direction to US Treasuries yield and US dollar. Thus, the sentiment for $50k remains higher.
Bitcoin Halving and Coinbase Premium Gap
Bitcoin halving is now just few months away and investors are bullish enough to take every buy-the-dip opportunity. According to the NiceHash countdown, the Bitcoin halving is estimated to happen on April 12, 2024. The mining reward will be reduced to 3.125 BTC. Matrixport Research predicted BTC price hitting $60,000 before Bitcoin halving.
On-chain data is bullish and crypto exchange volumes are also rising. Bitcoin Coinbase Premium Index indicates strong buying pressure on Coinbase. Also, Bitcoin open interest (OI) on top derivatives exchanges CME and Binance are rising again. Traders are going long on cryptocurrencies. However, traders can expect volatility in the coming days.
Spot Bitcoin ETF Hype And Institutional Buying
There’s high anticipation of Spot Bitcoin ETF approval by the US SEC in January as the deadline nears. Moreover, rising digital asset inflows confirm a massive buying by institutional investors, assuring an upcoming rally in Bitcoin price.
The crypto market could also see improving regulatory clarity, lawsuits and other conflict will fade gradually. The SEC Chair Gary Gensler revealed that they are in talks with Bitcoin ETF issuers.
Also Read:
- Ripple CTO & XRP Lawyer Red Flag SEC Gary Gensler ‘Crypto Asset Security’ Propaganda
- Solana Flips Ethereum DEX Volume As Saga Mobile Gets Sold Out & BONK Price Rally
- US SEC To Inspect Binance.US Technical Infrastructure, Systems And Software
- John Bollinger Sees ‘W’ Bottom Forming in Ethereum and Solana, Not Bitcoin
- Robert Kiyosaki Calls Bitcoin and Ethereum ‘Real Money,’ Urges Investors to Ditch ‘Fake’ Fiat
- ‘Sell Gold, Buy Bitcoin’: Expert Flags Major Market Bottom Signal
- Ripple Makes ‘Unusual’ $500M Transfer Amid $1 Billion XRP Treasury Plans
- ‘I’m Going Bonkers’: Dave Portnoy Says He’ll Buy XRP Again If It Dips Below This Level
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
- Shiba Inu Price Eyes Recovery as Burn Rate Jumps 10,785% – Can SHIB Hit $0.000016?
- Ethereum (ETH) Price Prediction: Analyst Eyes $7,000 by Q4 as Bitmine Accumulates $281M ETH — Will History Repeat Itself?
- HYPE Price Teeters Amid Weak Technicals and Soaring Liquidations
- XRP Price Prediction As Ripple Announces $1B Treasury Plans – Is a Rebound Imminent?
- Bitcoin Price Prediction Amid Gold’s Parabolic Rally to Second-Largest Reserve Asset
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
