According to David Liang, the CEO of Path Crypto, the anticipated approval of spot bitcoin ETFs by U.S. regulators in 2024 could drive the price of bitcoin higher. Liang suggests that history has shown a possible slowdown in bitcoin’s price before the halving event in April 2024. The halving event, which occurs roughly every four years, reduces the inflation rate of bitcoin by halving the block reward for miners. The reduced supply of new bitcoin entering the market often leads to increased demand and higher prices. Liang also notes that previous bull runs have been followed by periods of consolidation and correction, which could potentially repeat in the lead-up to 2024. Overall, while the approval of spot bitcoin ETFs may boost prices in the short term, investors should be mindful of historical patterns, including a possible slowdown before the halving in April 2024.
In summary, the potential approval of spot bitcoin ETFs by U.S. regulators in 2024 could have a positive impact on the price of bitcoin. However, historical trends suggest that there could be a slowdown in the market as the halving event approaches. It remains to be seen how these factors will play out, and investors should consider the potential risks and fluctuations in the market leading up to 2024.
