It’s safe to say that the highly-anticipated 2024 bitcoin bull run is not going as planned, even though the asset managed to break its 2021 all-time high early on.
However, it has lost some traction and speed on the way toward the coveted $100,000 mark, but Perplexity listed some of the factors that could propel another run by the end of 2024.
Market Sentiment, Regulatory Developments
Bitcoin made history this year as it charted a new all-time high before the scheduled halving. That happened in March on the heels of the massive demand for the spot BTC ETFs in the States, which were greenlighted in mid-January. This led to heightened hopes that the 2024 rally would be spectacular and could finally see the primary cryptocurrency skyrocket to the $100,000 target, especially after the completion of the halving.
However, that has not been the case. The fourth such event indeed took place as scheduled in April but the landscape has been anything but overwhelming since then. Although BTC came inches away from breaking the March ATH of almost $74,000 on a couple of occasions in May and early June, it failed to do so and the subsequent rejections pushed it south hard. In fact, it dumped to under $50,000 in early August.
According to the popular CharGPT rival, Perplexity, BTC could overcome the current sluggish landscape only if certain factors improve. The first listed ones were the overall market sentiment and investor confidence.
The AI chatbot said the current sentiment is “cautious, with a fear and greed index reading indicating a general sense of fear among investors.”
“A shift towards more optimistic sentiment, characterized by increased trading volumes and positive news cycles, could help restore confidence in bitcoin. A return to a more bullish outlook could encourage more buying activity, which typically drives prices higher.” – it added.
On the regulatory side, Perplexity explained that the approval of the spot ETFs was a good sign at the start of the year, but global watchdogs have failed to double down. Perhaps that could change after the upcoming elections in the US, especially if the self-proclaimed ‘pro-crypto’ candidate Donald Trump enters the White House.
Global Economy and Adoption
The AI chatbot believes BTC adoption levels are nowhere near their peaks from a few years ago, which is another factor that needs to improve.
“Continued growth in the adoption of bitcoin for transactions, as well as its integration into financial products and services, could provide a solid foundation for a bull run. As more businesses and individuals recognize bitcoin’s value, demand could increase, driving prices higher.”
Lastly, Perplexity outlined the global economic landscape. It highlighted certain macroeconomic conditions, like inflation and interest rates, that have historically impacted the entire crypto market. Recall that BTC soared last week after Powell’s promise to cut the interest rates in the States.
Perplexity asserted that “a favorable economic environment, where inflation concerns lead to increased interest in alternative assets like bitcoin, could support a bullish trend.”
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