bitcoin Price Forecast: Q4 2024 Outlook
Markus Thielen, Head of Research at 10x Research, has recently shared an optimistic outlook for the bitcoin price, projecting that the cryptocurrency is poised to achieve new all-time highs in the fourth quarter of 2024. According to a report released by 10x Research on September 22, Thielen emphasized the upcoming months from October to March as a pivotal period for the cryptocurrency market, signaling a potential turning point for bitcoin and other digital assets.
bitcoin over past cycles. Source: 10x Research. " class="wp-image-287111" >Thielen highlighted the positive developments in the market structure that may lay a solid groundwork for a bullish trajectory. The increase in stablecoin supply indicates a surge in liquidity, which could boost trading activity—a common precursor to significant price surges. Moreover, heightened levels of leverage in futures trading suggest a more speculative atmosphere among traders, potentially driving prices upwards. Data from Coinglass shows that open interest has surged to levels unseen since early August, exceeding $17.6 billion.
Furthermore, the anticipated release of $16 billion from FTX creditors between December 2024 and March 2025 is expected to inject more capital into the market. Thielen estimates that approximately $5 billion to $8 billion could flow back into the crypto space, further fuelling bitcoin's upward trajectory.
Past Barriers to bitcoin’s Price Evolution into Catalysts
As we transition into the fourth quarter, previous hindrances to the bitcoin price are dissipating, paving the way for a more conducive environment primed for potential growth.
One of the principal catalysts behind bitcoin's recent surge is the Federal Reserve's decision to reduce interest rates by 50 basis points. This shift has steered the focus towards assets associated with higher risk as investors seek opportunities amidst a weakening U.S. dollar, mounting inflation, and ongoing fiscal uncertainties.
The resilience of BTC miners following the halving event has also contributed to the positive sentiment surrounding bitcoin. Halving events, which result in a reduction of the block reward for miners, typically lead to a period of instability in the mining sector. However, data from Blockchain.com indicates that the network's hash rate has rebounded to pre-halving levels post the April 2024 halving, signaling the market's absorption of the impact.
Moreover, significant bitcoin sell-offs seem to have concluded, providing a clear path for further appreciation in prices. The completion of sales by the German government and the Mt. Gox trustees, totaling $11 billion worth of bitcoin, did not trigger substantial price disruptions.
Kamala Harris Pledges Support for crypto
Political developments have played a pivotal role in bolstering sentiment within the cryptocurrency market, with the upcoming U.S. election emerging as a significant catalyst for optimism.
Vice President Kamala Harris's public endorsement of digital assets during a fundraiser at Cipriani Wall Street in Manhattan underscores this bullish outlook. Harris affirmed her commitment to supporting crypto and AI to foster innovation, signaling a positive stance towards the digital asset space.
We will partner together to invest in America’s competitiveness, to invest in America’s future. We will encourage innovative technologies like AI and digital assets, while protecting our consumers and investors.
This endorsement, coupled with Donald Trump's endorsement of cryptocurrency, signifies a growing bipartisan support that is expected to drive considerable momentum in the crypto sector as calls for regulatory clarity intensify.
