Bitcoin’s price has cooled at $41,800, marking a 4% decrease for the week and potentially snapping the first eight-week streak of gains since 2017. This stagnation in price comes as investors have moved a net $860 million of BTC to exchanges, indicating profit-taking, according to IntoTheBlock.
Despite the recent dip in price, experts remain optimistic about Bitcoin’s future. The WOO Network has predicted that BTC will hit $75,000 by early 2024. This projection is based on the potential approval of a U.S. spot Bitcoin ETF and the upcoming Bitcoin halving, which will reduce new BTC issuance by half.
The recent price cooldown is seen as a normal occurrence by market analysts. Craig Erlam, senior market analyst at OANDA, stated in an interview with CoinDesk TV that price fluctuations are common in all asset classes. He also noted that falling interest rates in the U.S., U.K., and Europe are expected to benefit risky assets, including Bitcoin.
Anthony Rousseau, head of brokerage solutions at TradeStation, views the current pause in price as a healthy sign. He explained that the Federal Reserve’s indication of easing monetary policy and the anticipation of regulatory approval for spot Bitcoin ETFs are injecting confidence into the market.
Despite the short-term profit-taking, long-term holders (known as HODLers) have not started selling their assets, contributing to a restricted supply of Bitcoin. Rousseau believes that these factors could create a perfect storm for Bitcoin in 2024, potentially pushing prices to all-time highs.
WOO Network’s year-end report further supports the bullish outlook for Bitcoin. The report targets $75,000 for BTC in early 2024 and suggests that the combination of spot ETF listings and the Bitcoin halving may establish Bitcoin as a safe haven asset, driving increased demand.
In conclusion, while Bitcoin currently faces a potential break in its winning streak, experts remain optimistic about its future. The market cooldown is seen as a normal occurrence, and investment narratives such as falling interest rates and regulatory approvals for ETFs are expected to support rising prices. With the potential for a perfect storm brewing, Bitcoin’s all-time highs could be on the horizon.