After the holiday, traders and investors will return to their desks. Questions about how much Bitcoin will be worth are already occupying the agenda. This is because global stock markets are said to be preparing for a New Year’s rally. The momentum for a final push towards 2024 is increasing with the ongoing optimism related to the possibility of central banks starting to lower interest rates next year.
How Will the Positive Sentiment Reflect on the Stock Markets?
This positive sentiment has been the driving force behind the recent rise in U.S. stock markets, with the S&P 500 index reaching nearly the highest intraday level in the last two years. This rise reflects the growing confidence that U.S. policymakers can achieve a ‘soft landing’ by reducing inflation without triggering a recession.
The S&P 500 is currently trading just below 1% of its all-time high level of 4,796.56 recorded in January 2022. Investors are optimistic about the market’s resilience, especially after the recent U.S. PCE index data indicated a slowdown in inflation last month.
However, a different narrative is emerging in the UK, where economic challenges continue. This situation is increasing concerns about inflation and the effectiveness of the measures taken by the Bank of England.
Potential Approval of Spot Bitcoin ETF Ignites Crypto Markets
In the crypto space, as the deadline for the U.S. Securities and Exchange Commission (SEC) to approve a spot BTC exchange-traded fund approaches, institutional investors are actively allocating capital to Bitcoin.
The SEC has set January 10 as the deadline to approve or reject an ETF that invests directly in Bitcoin. Although there is high anticipation for significant inflows into the asset class following the potential launch of the ETF, the actual demand for the BTC Spot ETF may initially fall below market expectations, potentially leading to a ‘sell the news‘ scenario in January.
Additionally, the general economic uncertainty recently observed may lead many to be more cautious, as the main theme at the beginning of 2024 will likely continue to be the ETF approval and the interest rate decisions of major central banks, which could significantly affect market performance.
How Much Is Bitcoin Worth Now?
As of writing this article, Bitcoin is trading at $43,090. The movement of the cryptocurrency at the beginning of 2024 is a matter of curiosity for everyone. The key factor that will determine the narrative of the rise is, of course, the SEC.
The comments include that a windfall in Bitcoin could provide significant benefits for altcoins. Since BTC usually initiates the primary movement, the market is now expecting rapid rises for altcoins following the increase in BTC in January. Let’s see how the 2024 story will unfold.
