Crypto News – The year 2023 was a bit of a complicated year for Bitcoin. After starting the year at $16,000, the currency surged in November and is now almost $43,000. So, what’s ahead for Bitcoin in 2024?
What Should Investors Expect from Bitcoin in 2024?
Especially towards the end of the year, as the expectation that spot Bitcoin ETFs would be approved increased, the currency went on an unstoppable rise. Such was the anticipation that it fueled a nearly 49% increase in BTC’s price between October and December. On the other hand, it is also a fact that the Bitcoin halving will take place around April 2024. Naturally, this is also a strong factor affecting prices.
CME Group’s BTC Futures Rise
About 25% of all Bitcoin open interest was made up of CME Group‘s $4.55 billion worth of Bitcoin futures. According to CME Group, the week of November 7, 2023, marked an all-time high for average large Bitcoin open-interest holders, defined as those with at least 25 contracts.
Asset managers and leveraged funds hold the bulk of CME BTC futures positions. The former has a long bias, while the latter has a short bias. This makes sense because, in comparison to other buy-side clients, asset managers typically approach investing with a longer time horizon.
In contrast, basis trading and hedging are common practices of hedge funds and commodity trading advisers, or CTAs. They also typically trade with a shorter time horizon.
2024 Interpretation According to Bitcoin’s Outlook
Recently, there has been a decoupling of the historical relationship between Bitcoin prices and consumer interest. It would seem that either institutional investors are exerting undue influence over prices or retail consumers are trading without doing any research, if the antecedent that retail customers are the only ones driving consumer interest is accurate.
The approval of the ETF is sufficiently ingrained in the price of bitcoin that traders taking profits off the table could counteract any positive momentum from the news. This implies that in the days following the announcement, there may be a regression to the mean. After that, it’s likely that the market will refocus on the April halving.
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