Sunday, February 25, 2024
Stock Market

Bitcoin $50K? Here’s What Will Fuel a Renewed Rally in the OG Crypto.

Is it a ‘pet rock’ or ‘digital gold’? Pick a side now, as Bitcoin’s likely to make a big move

Source: K.unshu / Shutterstock.com

Around a year ago, Bitcoin (BTC-USD) came under pressure as the FTX scandal hit the headlines. Plus, Securities and Exchange Commission (SEC) Chairman Gary Gensler seemed to be on the warpath against cryptocurrency. In early 2024, however, the tide is turning and the argument for owning Bitcoin is as strong as ever.

Furthermore, the bull case isn’t only about the SEC’s approval of spot Bitcoin exchange-traded funds (ETFs). Other catalysts could propel the Bitcoin price much higher, even though financial experts can’t seem to agree on the legitimacy of Bitcoin and the blockchain.

BlackRock vs. ‘Pet Rock’

Spot Bitcoin ETFs are already a big hit. Reportedly, within just four days of the introduction of spot Bitcoin ETFs, their collective trading volume surpassed $10 billion.

Consequently, Bitcoin is front-page news in the financial headlines now. For instance, BlackRock (NYSE:BLK) CEO Larry Fink called Bitcoin “digital gold” and a great store of value. Notably, BlackRock is one of the financial institutions offering a spot Bitcoin ETF.

Suffice it to say, the rhetoric surrounding Bitcoin is really heating up now. SkyBridge Managing Partner Anthony Scaramucci, for example, recently called Gensler and Massachusetts Senator Elizabeth Warren “the regulatory axis of evil.”

On the other side of the issue is JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon, who likened Bitcoin to a “pet rock.” Dimon also warned about Bitcoin, “My personal advice would be don’t get involved.”

Move Past the Rhetoric and Focus on Bitcoin’s Catalysts

It’s fine to listen to financial experts and consider their arguments for and against Bitcoin. When all is said and done, however, it’s your money and you have to decide whether Bitcoin is appropriate for your portfolio.

When the debate gets too heated and confusing, just keep your eyes on the prize and consider Bitcoin’s catalysts. Sure, there’s the introduction of spot Bitcoin ETFs, but that’s old news now.

What could spur the next big rally in BTC-USD? In the near term, there’s the Bitcoin halving/halving event. That’s when the reward for mining Bitcoin will be cut in half. As a result, the growth of the available supply of mined Bitcoin is likely to decrease. The next Bitcoin halving/halving event is reportedly set to take place on April 18 of this year.

In the long term, China’s hidden cryptocurrency-trading market could catalyze Bitcoin. Apparently, Bitcoin trading is restricted but still popular in China. It’s happening in China’s cafes, snack kiosks, and even laundromats.

China’s population is vast, and even a slight loosening of Bitcoin-trading restrictions could send the BTC-USD price higher. So, keep your eyes peeled for new developments concerning China’s cryptocurrency-trading rules.

How Long Until Bitcoin Hits $50K?

Bitcoin looked like it was ready to reach $50,000 during the recent spot Bitcoin ETF hype phase. Then, it pulled back toward the $40,000 level. Don’t be discouraged, though, as there will be more BTC-USD catalysts in the future.

Indeed, the next catalyst could happen by April with the Bitcoin halving/halvening event. There’s also the potential for explosive crypto-trading activity growth in China. Thus, it’s a great time to consider adding a small amount of Bitcoin, either through the tokens or through ETFs, to your portfolio.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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