Bitcoin price has rallied 170% this year as bulls strongly push prices above key support levels. Traders are now anticipating another upside move and closing the year near $50,000. Several major factors confirm that Bitcoin and the crypto market will reach a new all-time high (ATH) in a few months.
Bitcoin Price Set For New ATH
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 on Wednesday. Fed Chair Jerome Powell made it clear that they plan to announce three rate cuts in 2024, as inflation cools.
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 ressponse 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.
Secondly, 10-year US Treasuries yield fell below 4% for the first time since August, renewing the bullish sentiment. Moreover, US dollar index (DXY) fell to 102.28 as the central bank turns dovish despite inflation still above the 2% target.
Bitcoin halving is now just few month away and investors are bullish enough to take every buying opportunity. According to NiceHash countdown, the Bitcoin halving is estimated to happen on April 12, 2024. The mining reward will be reduced to 3.125 BTC.
On-chain data is bullish and crypto exchange volumes are increasing. 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.
High anticipation of Spot Bitcoin ETF approval by the US SEC in January and rising digital asset inflows confirms a massive rally in Bitcoin price. Matrixport Research predicted BTC price hitting $60,000 before Bitcoin halving.
The crypto market could also see improving regulatory clarity, lawsuits and other conflict will fade gradually.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
