Bitcoin could be on the verge of a significant rally by the end of 2024, according to insights from the latest 10x Research report.
The report highlights the volatile year so far but discusses a paradigm shift in light of the combination of forces driving the cryptocurrency market and seasonal patterns.
Speaking with Cointelegraph, Markus Thielen, the founder of 10x Research, explained that there is a “key focus” on the FTX payout, as the “proposed $5–$8 billion inflow” could spark bullish sentiment:
“There’s a possibility of a melt-up in risk assets, as the Fed [United States Federal Reserve] seems to have raised the level of the S&P 500 at which they would intervene to protect investors, signaling the potential for further rate cuts — often referred to as the ‘Fed put.’ As a result, many investors are likely to reposition their portfolios in anticipation of 2025.“
Related: Gold hits new high as Bitcoin rallies to month high at above $64K
Seasonal patterns
Bitcoin (BTC) has historically performed strongly from October to March, a trend highlighted in the 10x Research report.
The report speculates that this trend could repeat this year, particularly considering the previous market cycles of 2014, 2017 and 2021.
“While our contrarian bearish outlook since March/April was based on various factors, Bitcoin’s 2024 performance has once again followed its seasonal pattern — just as it did in 2023.“
Related: Bitcoin price strength extends to AVAX, SUI, TAO and AAVE — Are altcoins back?
Bitcoin catalysts and risks
The report considers multiple external factors that could act as catalysts for Bitcoin’s end-of-year performance. Liquidity is expected to support the bullish momentum.
Macroeconomic conditions such as the US Federal Reserve interest rate decisions, inflation concerns and US election-related dynamics are potential catalysts for BTC’s price.
Despite the alignment of potential bullish catalysts for BTC, the report cautions investors to be vigilant, highlighting the asset’s history of drawdowns of up to 70% in previous cycles:
“The two key levels to watch for Bitcoin are the previous…..
