Bitcoin has entered 2024 with a strong performance, and many experts predict that this momentum will continue. However, there is a wide range of predictions about the potential for further upside and what could trigger it. One crypto analyst predicts that the BTC price could see significant volatility following the passage of the US Bitcoin Strategic Reserve bill.$BTC
The crypto analyst warned that if Senator Lummis’ proposal for the US government to purchase 5% of the Bitcoin supply is approved, there will be increased price volatility in the short term. Collective Shift founder and CEO Ben Simpson said that he expects Bitcoin price volatility to increase, especially with the adoption of the strategic BTC reserve. “The price of Bitcoin could go up in the short term, but then there could be a pullback,” Simpson said.
In his explanations regarding the current market conditions, he draws attention to the dominance of Bitcoin. BTC dominance is a metric that shows how much of the entire crypto market belongs to Bitcoin. Simpson predicts that this dominance will "start to decline" and states that after Bitcoin consolidates at levels close to $ 100,000, altcoins will start to gain value. According to the latest data, Bitcoin's market dominance has decreased by 7.2% in the last 30 days, falling to 56.63%.
“We expect this dominance loss to continue. Next week, we could see a significant rise in altcoins,” crypto trader Momin said. However, Simpson said that the transition to altcoin season will not happen immediately and the market will be quite volatile. “I don’t think the transition to altcoin season will be that easy,” he said.
Bitfinex analysts state that many altcoins have not reached their highest levels against Bitcoin in terms of returns. It is stated that this situation shows that Bitcoin is still an efficient and competitive investment vehicle. Analysts predict that Bitcoin will continue to be included in the portfolios of large institutions despite the pullbacks and that interest in Bitcoin will continue to increase.
Bitfinex analysts state that Bitcoin exceeding six-figure price levels is an important turning point. It is stated that as long as BTC is in strong demand, the price declines in the near term will be short-term. It is emphasized that these declines may create a buying opportunity for investors. Analysts made the following statement:
"Once Bitcoin reaches $100,000, there is enough spot buying to sustain that level and leverage levels are reasonable. Therefore, a possible price drop during the holiday season would indicate a healthy market trend and such a correction could create a buying opportunity."
“Confidence in Bitcoin is growing and the asset’s potential to be an excellent alternative to gold is growing stronger as a store of value,” Bitfinex analysts added.