Coinbase, the largest cryptocurrency exchange in the United States, has released a report that identifies several key factors that could trigger a bitcoin bull run in 2024. The report focuses on crucial elements such as the United States Upcoming decisions of the Federal Reserve (FED)Spot bitcoin ETF and the rapidly approaching bitcoin halving event this year.
Macroeconomic factors that will affect the 2024 bull market
Friday, February 2 bitcoin/coinbase-bitcoin-spot-etfs/” rel=”nofollow noopener” target=”_blank”>Coinbase published a research report revealing the diminishing influence of certain technical factors that had previously put pressure on the crypto industry. Consequently, the crypto exchange suggested a possible shift towards bitcoin/bitcoin-price-will-reach-125000/” rel=”nofollow noopener” target=”_blank”>macroeconomic factorswhich will likely impact the cryptocurrency market and potentially bolster the performance of digital assets to boost the 2024 bull run.
The report highlighted important developments, such as the FED's disclosure of its interpretation of the current economic situation in the US and that of the Federal Open Market Committee (bitcoin/bitcoin-eyes-45000-amid-anticipation-of-fomc-decision/” rel=”nofollow noopener” target=”_blank”>FOMC) recognition of a better balance between risks related to inflation objectives and employment achievements. In addition, deliberations on the quantitative adjustment (QT) program have also been officially postponed to March 2024.
Coinbase anticipates that these developments point towards a possible easing cycle beginning around May 1, possibly resulting in the end of FED balance sheet reductions by June 2024. The crypto exchange has forecast a rise of 100 basic points. bitcoin/goldman-foresees-q2-2024-fed-rate-cut-boost-bitcoin/” rel=”nofollow noopener” target=”_blank”>rate cut by the FED this year, aligning with historical patterns of cautious policies during an election year.
bitcoin Halving and Spotting bitcoin ETFs to Fuel Optimism
Coinbase has revealed that its projections for the US economy are expected to match crypto market drivers such as the bitcoin-news/anticipation-peaks-as-bitcoin-halving-countdown-drops-below-100-days-will-prices-skyrocket/” rel=”nofollow noopener” target=”_blank”>bitcoin Halving Event scheduled for April. The crypto exchange hopes that these factors combined boost bitcoin and other major tokens by the second quarter (Q2) of 2024.
In the report, Coinbase also predicted that bitcoin Spot ETF would significantly impact the overall crypto market recovery. The exchange anticipates more impactful publicity from bitcoin ETF issuers and the inclusion of spot bitcoin ETFs in asset managers' model portfolios. This would effectively increase the adoption of digital investment assets and unlock a large amount of liquidity for the market.
Overall, the cryptocurrency market is expected to maintain a positive trajectory, with the possibility of bullish sentiment dominating the market after the halving event. Encouraging signs are the ongoing liquidations in ftx and the resurgence of crypto organizations defunct from bankruptcy.
Furthermore, there has been a bitcoin/spot-bitcoin-etfs-record-over-800-million-in-net-inflows-in-debut-week-details/” rel=”nofollow noopener” target=”_blank”>daily influx of over $200 million into spot bitcoin ETFs since early January, resulting in total net inflows rising to $1.46 billion after the bitcoin-etfs-btc-price-holds-steady-at-46000/” rel=”nofollow noopener” target=”_blank”>approval of bitcoin Spot ETFs on January 10. The cumulative daily trading volume also amounts to approximately $1.35 billion.
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