Crypto Autumn: Will Bitcoin Fail to Move Past 70K Again in 2024?

Over the past few months, the Bitcoin (BTC) price has been treading cautious territory. It briefly surged over $70,000 in March and even reached an all-time high, but it has been unable to beat past records ever since.

However, positive news followed last week when the United States Federal Reserve Chair, Jerome Powell, said on August 23, 2024, that interest rates would not be seeing another increase, suggesting a possible oncoming rebounding in the markets.

“The time has come for policy to adjust … We will do everything we can to support a strong labor market as we make further progress toward price stability. With an appropriate dialing back of policy restraint, there is good reason to think that the economy will get back to 2 percent inflation while maintaining a strong labor market,” Powell said while speaking at an economic symposium in Wyoming.

While such positive news allowed cryptocurrency investors to take a few deep breaths, many are left wondering whether the largest digital asset by market capitalization would be able to recover back its former glory days come September or not.

Table of Contents Table of Contents

1. Key Takeaways
2. What Is Driving the Bitcoin Price Today?
3. Bitcoin Price Analysis: Analyst Views for the Rest of 2024
4. The Bottom Line
5. FAQs
6. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. What Is Driving the Bitcoin Price Today?
3. Bitcoin Price Analysis: Analyst Views for the Rest of 2024
Show Full Guide
4. The Bottom Line
5. FAQs
6. References

What Is Driving the Bitcoin Price Today?

One of the biggest questions crypto investors have is what are some of the key events driving the Bitcoin price chart today.

From the cryptocurrency’s own limitations and a more diverse crypto market to much broader events, such as the Fed’s decision to cut back on hiking interest rates, BTC has been known to react quite loudly to the latest economic, tech, and geopolitical news.

Bitcoin Could Be Going ‘Out of Fashion’

While BTC has been the key pioneering cryptocurrency for turning the decentralized finance (DeFi) industry into what it is today, experts are noting that in the broader scope of things, the ‘original’ cryptocurrency could be going ‘out of fashion.’

Alan Orwick, the co-founder of Quai Network, told Techopedia:

“There’s an increasing awareness of its [Bitcoin] limitations, particularly in terms of scalability and adaptability to more complex, DeFi-based applications.”

Orwick further explained that blockchain industry experts continue to look for more innovation within the decentralized finance ecosystem from solutions that can meet the growing demands of the digital economy and have much more diverse use cases than BTC, like Ethereum (ETH), for example.

“This sentiment reflects both an appreciation for Bitcoin’s legacy and a forward-looking anticipation of innovations that can extend its principles to a broader range of use cases.”

BTC’s Substantial Sell Pressure in July

At the start of July 2024, the decade-long bankrupt cryptocurrency exchange Mt. Gox finally announced that it would be returning BTC and Bitcoin Cash (BCH) to some of its creditors.

The news led the BTC price to fall by nearly 10% in the first week of July 2024, down to around $56,700 from $62,600.

Data published by Arkham Intelligence showed that the German government also completed the sale of its remaining BTC holdings that same month, forcing another minor drop in the BTC price.

BREAKING: The German Government is now out of Bitcoin.

The German Government just sent 3846.05 BTC ($223.81M) to Flow Traders and 139Po (likely institutional deposit/OTC service).

The German Government has 0 BTC ($0.00M) remaining. pic.twitter.com/R2vfylR1b2

— Arkham (@ArkhamIntel) July 12, 2024

Vijay Pravin Maharajan, the CEO and founder of bitsCrunch, told Techopedia:

“The recent MtGox situation and news that the German Government was selling its Bitcoin holdings triggered a substantial amount of sell pressure in the aftermath.”

Maharajan highlighted that these two events had traders fearing wide-scale sell-offs, which led to the dip in the cryptocurrency’s price.

US Presidential Election Affecting BTC Price

It has not been once reported that the current US Presidential election race is the first to put cryptocurrencies on such a high priorities list, as both parties are signaling towards friendlier regulations.

While former US President Donald Trump had openly stated his pro-crypto agenda during his presidential election campaigns, experts were unsure where Vice President Kamala Harris stood on the topic until a recent Bloomberg News roundtable at the Democratic National Convention in Chicago with Harris’ senior advisor for policies Brian Nelson.

“She’s going to support policies that ensure that emerging technologies and that sort of industry can continue to grow,” Nelson said, adding that Harris will focus on the need to develop “stable rulesю.”

Such positive news helped maintain the Bitcoin price trend strictly over the $60,000 mark in the last week.

Aleksander Grandwilewski, the head of education at Decentralized Masters, said:

“Trump’s vocal support for crypto this year could lead to a speculative price bump if he wins. While Harris has been relatively quiet on her stance regarding crypto, her administration has hinted at an open-minded approach.

 

“A Harris victory might trigger a brief sell-off, but I believe visionary investors would quickly seize the opportunity to accumulate, given that mainstream crypto adoption seems inevitable regardless of the election outcome.”

Bitcoin Price Analysis: Analyst Views for the Rest of 2024

Despite recent lows in the BTC price chart, analysts remain positive that the cryptocurrency will see a correction.

$75-$80K as a Potential BTC Price Target

“I firmly believe this consolidation and correction phase is a natural part of a bull market, and surpassing $70k in Q4 is entirely within reach,” Grandwilewski predicted.

He added that he was “extremely bullish on crypto” over the following 18 months and doubts we could be entering a crypto winter cycle.

“By the end of the year, I expect Bitcoin to have moved beyond its current consolidation phase, potentially reaching the $75k-$80k range. Key factors include a possible rate cut, which, while mostly priced in, could still offer a better opportunity for margin-based investments.”

Increased Mainstream Adoption Pushing Bitcoin Price Higher

BitsCrunch’s Maharajan also backed the bullish sentiment, highlighting that an easing in regulatory developments and increasing mainstream adoption of digital assets could push the BTC price higher by the fourth quarter of 2024.

“As BTC dominance rises, it typically indicates a consolidation of capital into Bitcoin. Additionally, there is a palpable excitement regarding Bitcoin’s potential as a programmable application layer, which is enticing large VCs and investors to deploy dry powder into associated projects.”

Quai Network’s Orwick added that BTC might not be the only cryptocurrency surpassing previous highs as we enter the year’s fourth quarter.

“While Bitcoin is likely to surpass its previous highs and solidify its role as a critical asset in the global financial system, other blockchains that address challenges Bitcoin cannot will also gain significant traction.

“These emerging platforms, with innovative solutions and unique value propositions, will complement Bitcoin’s dominance by capturing areas where Bitcoin’s scalability, transaction speed, or functionality may be limited.”

The Bottom Line

Bitcoin’s journey in 2024 has been marked by volatility, influenced by both macroeconomic factors and internal market dynamics.

While the BTC price briefly reached record highs at the beginning of the year, it struggled to maintain momentum amid sell-offs and emerging competition from other blockchain technologies.

The recent statements by Fed Chair Jerome Powell hint at potential market stabilization, offering a glimmer of hope for Bitcoin’s recovery. However, uncertainties remain, particularly around regulatory developments and the upcoming US Presidential election, which could further sway BTC’s trajectory.

As the year progresses, investors are cautiously optimistic, with many believing that Bitcoin could still surpass its previous highs by the fourth quarter, bolstered by easing regulatory pressures and increasing mainstream adoption. Nonetheless, the landscape is evolving, and Bitcoin must navigate growing challenges from newer, more adaptable cryptocurrencies to retain its dominance.

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