Bitcoin has surged past the $40,000 mark for the first time in 18 months, gaining the endorsement of major Wall Street players. Despite recent controversies, the cryptocurrency has seen a 150% increase in price this year. The belief that 2024 could be a significant year for bitcoin may potentially signal a bull run for the entire crypto market.
Bitcoin, the first cryptocurrency created in 2009, has emerged as the top-performing asset in 2023. Its recent price surge has helped it enter the top 10 largest assets by market capitalization. The increase in institutional involvement and the anticipation of regulatory approval for spot bitcoin exchange-traded funds (ETFs) in January hold the potential to make crypto investing more accessible.
Major Wall Street firms are expected to receive regulatory approval to offer spot bitcoin ETFs in January, making it easier for investors to enter the crypto market. The belief that the Federal Reserve is unlikely to hike interest rates and may even loosen monetary policy in 2024 has further boosted bitcoin prices, as lower interest rates are considered bullish for the cryptocurrency.
The current surge in bitcoin price suggests a positive trend for the entire crypto market. Previous instances of bitcoin reaching $40,000 have been followed by bull runs, leading to increased optimism among investors. The increasing interest and involvement of institutional investors also contribute to a higher degree of comfort in investing in cryptocurrencies.
Google search trends indicate a lackluster retail enthusiasm
However, despite bitcoin’s positive performance, Google search trends indicate a lackluster retail enthusiasm for the cryptocurrency market. Mobile app downloads for consumer crypto apps have declined, raising skepticism about the potential for a substantial boom cycle in the crypto market. The absence of retail involvement in the market, which may be attributed to negative events and controversies surrounding certain figures, poses challenges for platforms like Coinbase seeking new customers from a diminishing pool of newcomers to the crypto space.
Bitcoin’s recent price surge and the endorsement it has gained from major Wall Street players reflect a growing acceptance and interest in cryptocurrencies. While the current rally shows promising signs for the future of the market, the absence of retail customers and declining interest in consumer crypto apps raise questions.