How Bitcoin Performed in the First Half of 2024?

by

This text discusses the recent developments in the Bitcoin ecosystem, specifically the launch of Runes and Ordinals protocols, which have contributed to increased on-chain activity, demand for BTC, and the potential for a vast ecosystem of decentralized applications (dApps) and smart contracts similar to Ethereum. The text also mentions the recent volatility in Bitcoin’s price caused by macroeconomic factors.

As a researcher studying the cryptocurrency market, I can tell you that Bitcoin, often referred to as digital gold, experienced quite the thrilling journey during the initial half of 2024.

As an analyst, I’ve observed that the heated debate surrounding the U.S. presidential election campaign has centered around a particular issue that has gained massive popularity, leading various countries to consider implementing regulations in response.

Bitcoin has experienced significant milestones, including the upcoming Halving in 2024 and the debut of spot Exchange Traded Funds (ETFs). These developments have contributed to Bitcoin’s increasing worth.

In the past decade and a half, Bitcoin’s worth went from being insignificant to reaching unprecedented heights. This year saw another significant milestone as Bitcoin hit an all-time high of $73,700. Known for its digital nature, Bitcoin is a preferred investment choice among cryptocurrencies. Market analysts anticipate that Bitcoin will surpass the $100,000 mark during the ongoing bull market in 2024.

As a crypto investor, I’d be happy to share my perspective on the past six months of Bitcoin’s (BTC) journey. In this comprehensive analysis, we’ll delve into BTC’s performance, explore the key factors driving its trajectory, and discuss potential future developments.

Bitcoin Price Traction 2024

As a crypto investor, I’ve noticed Bitcoin’s impressive performance mirroring that of stock markets in major economies throughout 2024. Just as it set trends during the bullish market bounce back in 2021 post-covid, Bitcoin has once again emerged as a trailblazer.

In the opening weeks of the year, Bitcoin’s price peaked at an impressive $42,280 following a significant surge from its previous low of $15,880 hit in November 2022. This dip saw Bitcoin’s value soar beyond $65,000 during the 2021 bull market before a correction ensued.

How Bitcoin Performed in the First Half of 2024?

Based on TradingView’s figures, Bitcoin began trading on Monday at a price of $63,347. At the point of writing this analysis, Bitcoin had reached a peak of $73,794 on March 14th, marking a new record high. Since then, Bitcoin has fluctuated between approximately $60,400 and $71,700 amid significant market instability, which is more volatile than previous years.

How Bitcoin Performed in the First Half of 2024?

The primary level of support for Bitcoin’s price is presently at $60,400, while resistance can be found around $71,700. Bitcoin has attempted to surmount this resistance barrier on four separate occasions since April. However, robust selling pressure from the upper side has been a significant factor in the repeated rejection of further price increases. The market has shown a pattern of sideways movement for several months as a result.

As a crypto investor, I’ve observed that the significant price movements of Bitcoin (BTC) this year can be attributed to various economic factors. Firstly, the approval and commencement of trading for spot Bitcoin Exchange-Traded Funds (ETFs) has played a pivotal role. Secondly, the recent fourth Bitcoin Halving event took place, which historically has led to price increases. Lastly, but most importantly, the buzz and excitement surrounding another potential bull run have greatly influenced Bitcoin’s upward trend. These developments have created a solid foundation for Bitcoin’s value to surge in the current market landscape.

One possibility: In the first half of 2024, let’s examine the primary factors that significantly influenced Bitcoin’s price.

Key Factors Affecting BTC Price in H1 2024

Spot Bitcoin ETFs

As a crypto investor looking back at 2024, the approval of the first spot Bitcoin ETFs in the US will be a pivotal moment I’ll never forget. Ever since their launch on January 10th, these Exchange-Traded Funds (ETFs) have significantly impacted Bitcoin’s price and trading dynamics. Their immense trading volumes have come incredibly close to rivaling Bitcoin’s overall trading volume on cryptocurrency exchanges.

Based on information from Sosovalue, the aggregate investment in bitcoin spot Exchange-Traded Funds (ETFs) amounts to $56.41 billion as of now. This financial influx, marking the transition of traditional finance into bitcoin, has been influenced by market fluctuations featuring substantial rises and falls.

Bitcoin Halving 2024

As a crypto investor, I’ve witnessed firsthand the significant impact of Bitcoin halvings on its price trend. Halving is an event that occurs roughly every four years, and it’s widely regarded as one of the most bullish catalysts for Bitcoin. In the aftermath of each halving, the BTC price has historically experienced a notable surge in value.

The eagerly awaited fresh surge and the subsequent halving of Bitcoin in 2024 were believed to propel its price to unprecedented heights. Many analysts foresaw Bitcoin surpassing $100,000 in both 2024 and 2025. However, unexpected market shifts have hindered a successful and sustained price increase for Bitcoin. Additionally, Bitcoin’s price set a new all-time high prior to its halving in 2024 – a first in Bitcoin’s history.

Despite only three months having passed since Bitcoin’s halving, which typically leads to price increases around eight to nine months afterward, it is too early to conclude that Bitcoin has fully realized its potential at this time.

Bullrun 2024

One significant aspect is the recurring trend of price increases, often referred to as “price uptrends.” These cycles typically follow Bitcoin’s halving event every four years. During this timeframe, the broader crypto market tends to experience heightened adoption and a substantial surge in market prices, including Bitcoin.

During the anticipated bull market in 2024, there’s been widespread belief among market speculators that unprecedented investments from retail investors and traditional finance institutions will pour in due to crypto ETFs. The approved Bitcoin and Ethereum spot ETFs are projected to draw billions of dollars from investors. This bull market may bring millions of new users into the crypto world, potentially peaking towards the end of 2024 or early 2025.

Bitcoin: A blooming ecosystem

In addition, Bitcoin’s ecosystem has undergone substantial advancements. Smart contracts, layer 2 solutions, and inscriptions on the Bitcoin blockchain have expanded its capabilities beyond merely facilitating value transfers.

On Mondays in recent weeks, the number of new Bitcoin addresses reaching a new peak of 352,124 since April 2021 has risen dramatically, reflecting growing confidence among retail investors.

As a researcher delving into the dynamic world of decentralized finance (DeFi), let’s examine some noteworthy advancements that have placed Bitcoin above Ethereum, Solana, and other competing blockchain networks in recent times.

Recent Developments within Bitcoin Ecosystem

Runes 

Runes represents a decentralized method for creating fungible tokens directly on Bitcoin without relying on any secondary networks. Launched in April 2024, this innovation is significantly expanding the capabilities of the Bitcoin ecosystem. By enabling programmability on Bitcoin, Runes offers more complex smart contract functionalities akin to Ethereum, surpassing the need for alternative off-chain solutions.

To expand the DeFi ecosystem of a blockchain, fungible tokens are essential, and Runes serves this purpose for Bitcoin. By boosting Bitcoin’s capabilities, flexibility, and safety, as well as encouraging innovations akin to Ethereum, Runes makes Bitcoin more attractive to various users and developers. It significantly contributes to the ongoing transformation and expansion of Bitcoin.

As a researcher studying the cryptocurrency market, I’ve discovered that Runes have significantly boosted Bitcoin’s demand due to their role in enabling developers to build applications on the Bitcoin blockchain. Consequently, the increased demand has resulted in a price surge for Bitcoin since the launch of Runes in April and May. In fact, during this period, Runes transactions accounted for over 68% of all transactions on the network compared to regular Bitcoin transfers.

Ordinals

As a researcher studying the blockchain space, I’m excited to share that in January 2023, I came across Ordinals – an innovative new protocol that enables the creation and launch of Non-Fungible Tokens (NFTs) directly on the Bitcoin network. Previously, the NFT market had primarily been dominated by Ethereum. With Ordinals, artists and creators can now mint unique digital artworks, music, and other forms of NFTs without having to leave the Bitcoin ecosystem.

In the year 2024, the implementation of Runes and Ordinals protocols on Bitcoin has led to a substantial rise in on-chain transactions and market interest for Bitcoin. These advancements have paved the way for Bitcoin to develop a vast ecosystem of decentralized applications (dApps) and smart contracts similar to Ethereum and Solana.

The Late Volatility in BTC 

As a researcher studying the cryptocurrency market, I’ve observed that Bitcoin’s price movements have grown slightly more volatile over the past few weeks compared to its historical trends. This increased volatility can be attributed to several macroeconomic factors, including the recent Federal Open Market Committee (FOMC) meeting and the Fed’s subsequent rate cuts. Additionally, the ongoing presidential election in the United States has added uncertainty to the market. For crypto investors accustomed to stable price action, these sudden price swings have caused frustration.

How Bitcoin Performed in the First Half of 2024?

On June 7, Bitcoin’s price reached a peak of $71,700. However, it failed to surpass this level and instead dropped significantly, reaching a low of $63,267 on July 1. This represents a substantial decrease of approximately 13%. Consequently, this price decline triggered massive liquidations for both short and long position holders, resulting in financial losses totaling hundreds of millions of dollars over the past two weeks. The downward trend in Bitcoin’s price has left crypto investors feeling dismayed as they had anticipated further price increases following the halving event.

Conclusion

As an analyst, I’ve observed some positive developments for Bitcoin investors during the first half of 2024. The buzz surrounding this digital asset, often referred to as “digital gold,” has been largely optimistic due to increasing public adoption. However, the market dynamics have become more volatile and unpredictable in recent months, with Bitcoin breaking probable trends and exhibiting unexpected price movements. It’s reasonable to anticipate that the second half of 2024 could bring even more turbulence for this cryptocurrency.

Read More

2024-07-01 11:17