According to David Liang, the co-founder of Path Crypto, the approval of spot bitcoin exchange-traded funds (ETFs) by U.S. regulators in 2024 could lead to a surge in bitcoin prices. Liang believes that this development may drive more people to invest in bitcoin, leading to increased demand and subsequently driving up the price. However, he also highlights a historical pattern in bitcoin’s price behavior that could potentially lead to a slowdown in the market as the halving event approaches in April 2024.
The halving event refers to the reduction in the rate at which new bitcoins are created and the rewards given to miners for verifying transactions. It occurs approximately every four years and historically has led to an increase in bitcoin’s price due to reduced supply. However, as the halving event approaches, the market may experience a slowdown as investors anticipate the event and adjust their strategies accordingly.
Liang’s analysis suggests that while the approval of spot bitcoin ETFs could initially boost prices, it may be followed by a period of consolidation or even a slight correction leading up to the halving in April 2024. This pattern aligns with previous halving events, where bitcoin’s price experienced a temporary slowdown before ultimately resuming its upward trajectory.
In conclusion, the potential approval of spot bitcoin ETFs by U.S. regulators in 2024 could have a significant impact on the cryptocurrency’s price. While this development may initially drive up prices, investors should be aware of the historical pattern of a slowdown leading up to the halving event. Therefore, it would be prudent for investors to consider the potential short-term fluctuations and make well-informed decisions based on their risk tolerance and long-term investment goals.
