The cryptocurrency world is abuzz with excitement as bitcoin experiences substantial rally and inflows into BTC spot ETFs. Daily injections of between $500 million and $650 million are increasing liquidity, setting the stage for a potential BTC spike that could break all-time records over the next month.
In January, Nathan Sloan made a bold prediction that is still turning heads: Bitcoin will reach the monumental $100,000 mark in 2024. With Bitcoin's recent rally, the burning question remains:
Are we still on track towards this important milestone?
Cracking the Sloan Code: Guided by Inflationary Trends
Sloan's video analysis depends on one crucial factor: inflation trends. Using Trueflation's real-time inflation indicator, Sloan highlights its importance for fundamental analysis (FA) of the crypto market. Despite the imperfections, he stresses its value as a guide, especially for understanding the impact of inflation on assets like cryptocurrencies.
Bitcoin ETFs take over
Shifting focus, Sloan explores Bitcoin ETF and its influence on market dynamics. Initially facing selling pressure, especially from Grayscale's Bitcoin Trust, Sloan sees a decline in selling activity. Instead, he sees a surge in interest, largely from big players like BlackRock. This change suggests a possible decrease in selling pressure and growing institutional interest in Bitcoin.
Also read: SEC's Gary Gensler: Bitcoin ETF Nod Does Not Guarantee Ethereum ETF Approval
Mapping of market phases
Sloan simplifies his analysis using the stock-to-flow model of Plan B, categorizing the current phase as โaccumulation.โ This phase, with stages such as distribution/selling, accumulation, and another bull market, signals possible future gains, giving hope to investors amid market fluctuations.
Adding another layer, Sloan analyzes seasonality charts to understand the trajectory of the crypto market. Examining historical patterns, he predicts strength in the fourth quarter of the halving year and the first quarter following, indicating significant price increases for flagship cryptocurrencies such as Bitcoin and Ethereum.
Projections and key factors
Sloan concludes his analysis by referring to a log regression graph that projects Bitcoin's potential trajectory. Their projections suggest that by the end of 2024, the price of BTC could reach $100,000, provided macroeconomic factors align with the trajectory of the crypto market. However, Sloan emphasizes the crucial role of factors such as inflation trends, Bitcoin ETF activity, and market seasonality in achieving this milestone.
Read more: ChatGPT Predicts Bitcoin Rally to Cross $300,000 by 2025
In conclusion, Nathan Sloan's detailed analysis guides investors through the complex path of the cryptocurrency markets. Sloan's insights highlight crucial data and market dynamics, helping investors achieve their financial goals with clarity and confidence. The story of cryptocurrencies continues, with all eyes on the horizon before this important milestone.
