The sharp decline in inflation across countries, including the United States and Europe, sets the scene for potential rate cuts by the Federal Reserve in 2024.
Consequently, these anticipated rate cuts could lead investors to redirect their funds towards riskier assets such as stocks and cryptocurrencies. This shifts away from the recent trend of favoring less risky assets like short-term government bonds. Let’s discover more about our strategy.
Bullish Trends and Caution
Moreover, the approval of a spot bitcoin ETF by the SEC and the upcoming halving, just four months away, present additional catalysts for cryptocurrencies in 2024.
- Despite a bullish outlook on high time frames at the beginning of 2024, caution arises in shorter time frames due to Bitcoin’s rapid ascent from 25k to 44k without substantial consolidation.
- While a temporary pullback is possible, overall optimism prevails.
ETF Approval Impact
Besides, the approval of a bitcoin ETF is a key event to monitor for Q1-2024 performance.
- Market sentiment, dictated by positioning and price action around ETF approval, may see knee-jerk reactions initially.
- The time gap between approval and product launch could lead to sell-offs as investors realize the need to wait for inflows.
Nevertheless, ETF approval signifies regulatory acceptance of crypto as an asset class, potentially resulting in improved liquidity flows in the US and increased Bitcoin inflows.
General Playbook
| Major Event | Bullish/Bearish | General Consensus | Plan | |
| Q1 | ETF | Bullish | ETF Approval can be a sell-the-news event | Maintain 10K Portfolio and take profits from Q4 2023 and Q1 2024 accumulation |
| Q2 | Halving | Bearish | Halving can be a flush event | Rebuild Portfolio, exit non-performing coins, Focus on the metaverse |
| Q3 | Post Halving Hype | Bullish | High Caps may outperform BTC | Get out of High Caps in extreme greed regions |
| Q4 | Fed Rate Cuts Stops | Bullish | Final Euphoria | DCA out of Mid Caps and Low Caps, Get back to Selected Coins |
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
