Many factors indicate that 2024 will be the most important year in BTC’s history

Source: Blockchain Knight

In 2024, as the spot BTC ETF is approved, it will attract a large amount of investment, and the timing of the halving of BTC supply coincides with the surge in demand for BTC.

After another great year with gains of over 150% in 2023, all eyes are on BTC to see if this crypto asset can maintain its epic growth in 2024 momentum.

Key factors favorable to BTC will emerge one after another in the next year, and analysts are extremely optimistic about BTC’s prospects. From the possibility of the first spot BTC ETF, to the planned mining reward halving, 2024 could go down as BTC’s most important year ever.

Arguably the most impactful potential development is the increased likelihood of a spot BTC ETF receiving SEC (U.S. Securities and Exchange Commission) approval.

This would allow direct investment in BTC without owning the asset, opening the floodgates to large institutional capital. Numerous asset managers, including BlackRock and VanEck, have submitted applications for spot BTC ETFs.

Industry researchers estimate that more than $240 billion will flow into BTC in the first year after approval alone.

The influx of new institutional funds, coupled with the reduction in miner selling pressure, may catalyze a price surge, pushing the price of Crypto assets firmly into the six-digit territory.

However, concerns remain about the potential for increased volatility as more traditional players interact with BTC’s free market dynamics.

What’s even more interesting is that BTC’s block reward will be halved in April 2024. This established event will halve the number of BTC obtained by the miner for processing transactions, thereby reducing the issuance of BTC.

BTC has experienced two halvings before, in 2017 and 2021, both of which triggered the two greatest bull markets.

The timing of the spot BTC ETF’s approval in 2024 is perfect as it had already attracted significant investment and then the supply of BTC was cut in half just as demand surged. This supply and demand imbalance greatly favors buyers, and history has proven that halvings tend to catalyze exponential price increases.

Influential leaders like Michael Saylor of MicroStrategy have even claimed that BTC could reach $1 million within the next few years. While this specific number relies on mass adoption across the globe, it does not seem impossible for BTC to surpass its previous all-time high in 2024.

Corporate capital allocation, institutional asset diversification, and growing interest from retailers will combine to push the price of BTC well beyond the previous price of Crypto assets.

In addition to financial market dynamics, 2024 will also see key BTC infrastructure upgrades, allowing it to further mature.

For the fiscal year scheduled to begin on December 15, 2024, BTC will be supported by fair value accounting standards. The change prompted the Accounting Standards Board to consider crypto assets as an investable financial asset class, acknowledging its growing role in the financial sector.

As fiat currencies around the world struggle with high inflation and fears of recession, BTC’s procedural transparency makes it an attractive safe-haven asset.

In countries where inflation is rampant, it seems likely that more individuals, large institutions and even governments will use BTC as a store of value and medium of exchange.