New investors push Bitcoin price to highest of 2024. We explain what to expect next
Last Updated on 14 February 2024 by CryptoTips.eu
Global stock markets fell yesterday afternoon due to rising inflation in the United States. Coupled with a very good jobs report for the month of January, this actually means that the US economy is still booming. Good news you might think, but analysts also note that Jerome Powell of the Federal Reserve will now wait a while before lowering interest rates. Higher interest rates, fewer investments, etc. Stock markets plummeted.
Amid all this news, Bitcoin has once again risen to it’s highest level of the year, the highest level in almost two years to be exact. Ether followed suit.
Bitcoin Passes $50,000 Amid Growing ETF Momentum https://t.co/7DvYC3IvR0 pic.twitter.com/cCUwytxqwP
— Forbes (@Forbes) February 13, 2024
New investors keep coming into the cryptosphere and appear to push Bitcoin to a new all-time high. How come?
At the time of writing Bitcoin is trading for $51,500 while Ether is priced at $2,740.
Trade war
The unusual new geopolitical hype text called ‘why the west can’t win’ explains how important the opinions of the world’s largest investment funds are. Please note, this is not the first time that this theory has been expounded. ‘Liar’s Poker’ by Michael Lewis also claimed this some twenty years ago, but this time it is shown using very detailed graphs and forecasts.
The funds managed by these large asset managers are now almost as big as the government budgets of a medium-sized country. Together they can move a lot of capital.
Hence if Vanguard, Fidelity, JP Morgan and Blackrock all think that a trade war against China is a bad idea, or, for example, that leaving the Paris climate agreement would hurt their investments. Then Joe Biden or Donald Trump can do whatever they want, but legislation will suddenly find it very difficult to pass through Congress and the Senate (because money can ‘influence’ politicians).
Ever since January 10th of this year, the SEC ruled that investing in a Bitcoin ETF from BlackRock is kosher and from now on any (Western) regulator has an almost impossible task to outright ban the largest digital currency. Bitcoin will therefore have difficulty ever falling to zero again.
Larry Fink
Bitcoin rose to $49,000 in the first two weeks of this year, after which it started an announced ‘sell the news’ decline until it found support around the $38,000 to $40,000 level (where Whales mainly buy in). The high demand from new investors for an entry into a Bitcoin ETF fund ensured that the largest digital currency recovered from this decline in a matter of weeks.
Ether followed suit. That’s also because Larry Fink, CEO of BlackRock, admitted that an Ether ETF is a next goal for his company. If his legal team needs the same time to convince the SEC of the usefulness of such an Ether ETF, you can expect such a fund to start trading before the end of the year. Investors are already taking a head start and push the Ether price higher every time the price of Bitcoin rises.
Halving
Finally, there will be a halving in April. Loyal readers of cryptotips know all too well what such a halving historically does to the price, and the global media will not fail to subtly point this out from the end of March to April in articles that will inform millions of people of this fact and easily create new and more investors .
If Bitcoin simply follows the 2024 trend of adding $5,000 every month, we would end up with a price of $70,000 in December. If the influx of new investors into Bitcoin ETF funds continues, it could go much higher.
Disclaimer: just like the stock markets, Bitcoin is now becoming more sensitive to geopolitical influences due to the new money from Wall Street coming in. Thus an expansion of the conflict between Israel and Hamas into a larger war in the Middle East, a takeover of more territory from Ukraine by Russia or a rise in oil prices could send stock markets plummeting in 2024 and also depress Bitcoin’s price.
An election of Donald Trump would normally only cause the Chinese stock market to plummet further.
Happy trading.
