Beware the crypto bull run predictions in 2024
News of crypto ETF approvals and Bitcoin halving are fueling optimism. But there is some truth to the Wall Street saying "buy the rumor, sell the news."
While I remain bullish on digital assets and the wider crypto industry on a long-term horizon, there’s reason to remain cautious going into 2024. Investors face mixed signals, and it’s possible the good news regarding Bitcoin ETF approval–which has been leading crypto headlines for some months–has already been priced in.
While markets didn’t skyrocket last year, they also didn’t crater. There has been sufficient optimism to maintain pricing stability. That optimism is largely related to two major events in 2024: the recent approval of spot Bitcoin ETF and the potential approval of Ethereum exchange-traded funds (ETFs) in the U.S., as well as the upcoming Bitcoin halving. The ETF approvals are expected to bring improved trading volumes and liquidity to crypto markets in general, and the halving will prevent BTC deflation and thus support prices.
Many pundits have attributed the Q4 pricing pump to these factors, and that’s been coupled with bullish activity in the derivatives market as well. Investors overall appear to believe that central bank rate hikes are mostly behind us and that there’s enough weight to these optimistic murmurings to look forward to a breakout bull run in 2024.
