Bitcoin ($BTC) has recently experienced a significant surge, reaching near the $42,000 mark on Monday, a level that has not been seen in the past 18 months.
This uptick comes despite a backdrop of challenges in the crypto world, including Binance’s recent $4.3 billion settlement for violating U.S. anti-money laundering laws.
Despite these hurdles, market analysts are observing a strong Fear Of Missing Out (FOMO) sentiment among traders.
Santiment, a notable analytics firm, shared insights on this trend. “After reaching $42K today, $BTC may need a brief cooldown. If RSI stays below 65, $50K quickly becomes more realistic,” it posted on their X account.
This statement reflects an optimism that is supported by several other analysts, suggesting that Bitcoin could potentially hit the $50,000 mark, depending on market dynamics like trader profit-taking and overall demand.
However, others are more cautious and are citing the saying “buy the rumour, sell the news”.
BTC to reach 50k amid ETF approval
A significant factor contributing to Bitcoin’s price momentum is the expectation of regulatory approval for spot bitcoin exchange-traded funds (ETFs). These investment vehicles, which can be traded like stocks, are expected to make crypto investments more mainstream.
Ryan McMillin, Chief Investment Officer at Merkle Tree, expressed his enthusiasm to CoinTelegraph, calling the anticipated launch of spot Bitcoin ETFs the most hotly anticipated launch ever.
He believes any market sell-offs will be swiftly countered by strong investor interest in these ETFs.
Similarly, CK Zheng of ZX Squared Capital anticipated that any price dips following the ETF approval will be minor, suggesting a robust upward trajectory for Bitcoin.
Michaël van de Poppe, CEO of MN Trading, also foresees a significant breakout for Bitcoin, predicting a climb to the $47k-$50k range before these ETF approvals. This is on the basis that the current trend persists.
Scepticism Around ETF Approval
However, not all analysts share this bullish sentiment. James Edwards, a cryptocurrency analyst at Finder, views the potential ETF approval as a “sell-the-news type event,” according to Cointelegraph. He argues that institutional buying may not kick off immediately upon ETF approval, potentially taking months or even years to gain momentum.
Yet, Edwards has acknowledged the unpredictable nature of the crypto market, suggesting that while a correction might seem logical, it may not necessarily play out in the volatile crypto world.
Bitcoin price prediction for 2024
The Bitcoin community is also anticipating the next halving event in April 2024, which will reduce mining rewards from 6.25 to 3.125 BTC per block. Historically, these events have positively impacted Bitcoin’s price, as reduced supply coupled with steady or increasing demand typically drives up value.
A crypto analyst known on X as rektcapital reviewed past trends and predicted a revisit to the $45,000 level before the 2024 halving, followed by a pullback to $42,000.
CoinCodex’s Bitcoin price prediction algorithm forecasts a trading price of around $46,900 by April 12, 2024.
Post-halving predictions are even more optimistic. CoinCodex anticipates a jump to $70,200 one month after the halving, a 49.7% increase. Three months post-halving, Bitcoin is expected to reach approximately $88,400, marking an 88.5% rise from the predicted halving price.