As we get ready to turn the calendar forward to a new year, one thought keeps echoing in my mind: 2024 will be the year of Bitcoin. On the surface, this seems like an outrageous statement. After all, FTX collapsed just over one year ago, and the trial of Sam Bankman-Fried is fresh in all of our minds. However, this is actually one of the reasons why I'm so bullish.
Given all the bad news, you'd think that Bitcoin would be totally worthless at this point, but despite all of this Bitcoin has held up remarkably well. While this may seem odd, it actually makes perfect sense once you realize that those who wanted to sell most likely did so after the FTX collapse. Thus, capitulation took place in November of 2022, leaving only diehard "hodlers" as incessant believers. It is this dynamic of capitulated sellers combined with unbroken zealots that often leads to explosive moves in the Bitcoin universe.
Another factor to consider is that the fourth Bitcoin halving is set to take place on approximately late April 2024. Historically, halvings have been catalysts for strong price increases in Bitcoin.
Finally, the potential for a Bitcoin ETF is a solid step forward in mass adoption of cryptocurrency investing. As an increasing number of funds and individual investors begin to look for exposure to the crypto space, more and more of that money is likely to find its' way towards Bitcoin, which is the largest cryptocurrency by marketcap as well as the most familiar name. Here's to 2024! I have a feeling it will be a year none of us will ever forget.
Risk right. Sit tight.
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Full Disclosure: I currently own Bitcoin, Solana, and Ethereum.
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