John Divine, head of digital asset OTC trading at BlockFills, described the biggest factors that stand to impact bitcoin’s trajectory. Featured on TheStreet, by Rob Nelson.

Bitcoin’s path to new price highs is almost always a topic of intense speculation and analysis among the crypto community, but it has been even more of a focus since the asset broke the $50,000 mark again this week, with signs of more momentum to come.

In a recent discussion, Roundtable anchor Rob Nelson discussed this path with John Divine, head of digital asset OTC trading at crypto trading solutions firm BlockFills. The pair shed light on the future of bitcoin’s pricing and the dynamics that could shape its journey through the rest of 2024.

The conversation kicked off with Nelson probing for price predictions, referencing a spectrum of forecasts that peg bitcoin’s future value at anywhere between $100,000 and $200,000. Divine, cautious yet optimistic, suggested that doubling past all-time highs is a plausible outcome. He added that his bullish stance is primarily fueled by the introduction of spot bitcoin exchange-traded funds (ETFs), a development poised to significantly impact the supply-demand equilibrium.

Divine elaborated on the mechanisms likely to drive bitcoin’s price upward, such as increased participation in options and futures markets. However, he also noted the growing sophistication of bitcoin investors in hedging strategies, which could moderate volatility. The anticipation of April’s bitcoin reward halving event, coupled with the heightened interest from Wall Street, is projected to introduce a supply shock, potentially propelling prices even further.

Adding to the complexity, Divine highlighted the critical role of the U.S. dollar’s performance and the potential impact of Federal Reserve policies on bitcoin’s upcoming price changes. Nelson echoed Divine’s insights, speculating that a doubling of previous highs, implying a target of around $120,000, seems within reach, especially with the backdrop of the halving event and possible shifts in Federal Reserve interest rates.

This discussion encapsulated multifaceted factors that may influence bitcoin’s price trajectory, from market mechanisms and investor behavior to regulatory developments and macroeconomic indicators. As the digital currency ecosystem continues to evolve, these insights provide perspectives that may help investors navigating the volatile landscape of crypto markets.

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