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This is What’s Causing the Bitcoin (BTC) Price Rally Above $40K, Expert Says

George Georgiev Dec 4, 2023 06:46
Bitcoin's price is up over 5% in the past 24 hours and an expert is giving an interesting reason for the rally above $40K.

As CryptoPotato reported, Bitcoin’s price exploded above $41K for the first time in 19 months, leaving a trail of liquidated short positions over the past 24 hours.

Many analysts and experts have stated that the bull run has already begun, while others believe that it will come following the 2024 Bitcoin halving.

That said, Jeroen Blokland, a well-known money manager, and a ‘multi-asset investor’ believes that this rally is different compared to the last time the cryptocurrency was trading at these levels.

The last time Bitcoin topped $40,000 was in May last year. After that, Crypto scandals and lousy overall market sentiment pushed the price down. And while many investors are focused on the halving, it’s the acceleration of Bitcoin as an ‘accepted’ asset class that feels different from the last time we were at $40,000.

The Bitcoin halving that Blokland is referring to is slated to take place in April 2024. It’s an event that takes place once roughly every four years, and it slashes the production of new BTC in half.

It has traditionally coincided with considerable increases in the price of BTC and major bull markets that took place across the entire industry.

That said, 2023 is coming to an end, and the month of December could also turn out to be an interesting one for the cryptocurrency markets.

On December 13th, there’s a meeting of the Federal Open Market Committee (FOMC) in the US. The country will review its anti-inflationary policy and determine whether or not it will hike inflation rates. The majority of the experts believe that the rates will remain unchanged, which is perhaps the reason why risk-on markets such as crypto are seeing an uptick.

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George Georgiev

Georgi Georgiev is CryptoPotato's editor-in-chief and seasoned writer with over four years of experience writing about blockchain and cryptocurrencies. Georgi's passion for Bitcoin and cryptocurrencies bloomed in late 2016 and he hasn't looked back since. Crypto’s technological and economic implications are what interest him most, and he has one eye turned to the market whenever he’s not sleeping. Contact George: LinkedIn