According to Path Crypto’s David Liang, the anticipation of U.S. regulators approving spot bitcoin exchange-traded funds (ETFs) in 2024 is exerting upward pressure on the prices of the cryptocurrency. However, Liang points out that based on historical trends, there could be a slowdown in the Bitcoin market as the halving event approaches in April 2024.
Liang’s assessment is based on previous halvings, which are programmed into the Bitcoin network to occur roughly every four years, reducing the rate at which new Bitcoin is created. These events have historically been followed by upward price movements, but have sometimes been preceded by a period of consolidation or decline. Liang suggests that the anticipation of ETF approval may be driving prices ahead of the halving.
The approval of spot Bitcoin ETFs would provide investors with a regulated and easily accessible way to gain exposure to Bitcoin without holding the cryptocurrency itself. This regulatory approval could attract additional institutional and retail investors, leading to increased demand for Bitcoin.
If U.S. regulators do approve spot Bitcoin ETFs in 2024, it could have a significant impact on the Bitcoin market and further legitimize the cryptocurrency as an investment asset. However, it remains to be seen how the market will react leading up to the halving event, and whether the pattern of previous halvings will hold true.
In summary, optimism regarding the approval of Bitcoin ETFs in 2024 is driving prices higher. However, historical patterns suggest that there may be a slowdown in the market as the halving event approaches. The outcome of these two factors remains to be seen, but they will undoubtedly play a crucial role in shaping the future of Bitcoin.
