Experts believe that bitcoin might rise a lot by 2024. There are 5 reasons including weak dollar, the lowest volatility in history, whale hunting, the increase in difficulty of mining, bitcoin halving in 2024.
First of all, the ‘weak dollar’ has worked as a clear signal in the virtual currency market. Since most virtual assets such as Bitcoin are traded in conjunction with the dollar, the weak dollar is bound to be advantageous for virtual assets. This is because you can buy more virtual assets with the same dollar. Earlier, Bitcoin had been super strong in the face of the dollar’s weakness, and last year’s bearish market also began with the dollar’s strength.
Next, Bitcoin’s ‘low volatility’ is also drawing attention. This is usually due to the argument that reduced volatility is a sign of a bullish market.
The movement of large hands of virtual assets, also known as ‘whales’, is also a variable. This is because it is interpreted that they are leading the rally by purchasing a large number of Bitcoin recently. In fact, the average transaction volume of Bitcoin on the global virtual asset exchange Binance increased from USD 700 on the 8th to USD 1,100 on the 16th. The increase was attributed to a large number of whales.
Analysts say that the recent sharp rise in the difficulty of bitcoin mining also contributes to the Bitcoin rally. If the difficulty of mining increases and production costs rise, the value of Bitcoin will inevitably rise. According to BTC dotcom data on the 16th, the difficulty of bitcoin mining increased by 10.26%. It is the first time in three months that the difficulty of mining has risen by more than 10% since October 10 last year.
Analysts say that Bitcoin halving, which is approaching 2024, will also have a positive impact. Bitcoin goes through a halving in which block mining compensation is halved every four years. Some investors believe that it will be positive for prices because the supply of Bitcoin is pressured in the half-life.