Bitcoin to go Parabolic in 2024
The crypto currency market is tipped to go parabolic in 2024 with a mix of optimism and caution as influential analysts share bullish predictions for Bitcoin's future with an interesting vision on Terra Classic USD which has experienced a significant price surge. Although this surge is no where near the level it requires to regain it’s previous price point.
There are concerns about regulatory risks emerging following the FTX failure and the impact it will have on the broader Decentralised Finance (De-Fi) sector.
There is excitement about surrounding Ripple's XRP token is in focus as it finds support and anticipates a potential uptrend that might see it out perform Binance’s native token, BNB.
Bitcoin Supply Vs Demand may see the token boom
Crypto analyst George, known for the channel recently shared his optimistic outlook on Bitcoin's price trajectory. Citing analysis from Standard Chartered Bank. George highlighted two key factors driving the bullish sentiment.
The bank predicts Bitcoin reaching USD 120,000 by 2024 attributing this potential surge to supply shocks from miners holding more coins post halving and increased demand facilitated by spot Bitcoin ETF approvals.
George emphasised the significance of supply and demand dynamics pointing to the continuous rise in demand and the potential boost from spot Bitcoin ETFs. He expressed a "75% probability" that Bitcoin could reach USD 40,000 to USD 45,000 by the end of 2023.
With a focus on the current minor pullback as part of the overall upward trend. Positive metrics such as a parabolic indicator turning green, record high addresses holding Bitcoin, and rising open interest in Bitcoin futures and options further support his bullish stance.
Terra Classic USD's (USTC) Resurgence?
In another podcast crypto analyst Oscar Ramos shared his optimism regarding Terra Classic USD (USTC) and other coins associated with the Terra ecosystem. Ramos highlighted USTC's recent price appreciation which saw the token soaring by 153% over the last seven days and trading at USD 0.033 at the time of analysis. He attributed this surge to factors such as increased trading volumes, token burns, and Binance relisting the token.
While acknowledging the unpredictability of crypto markets Ramos expressed confidence in USTC's potential for sustained growth. He also mentioned Terra Classic (LUNC) suggesting that if USTC continues its upward trajectory it could positively impact LUNC as well.
It’s important to note that the price increases are no where near the level that Luna or USTC was prior to the market cash.
FSB Report Flags Risks in Crypto Asset Intermediaries
The Financial Stability Board (FSB) released a report on November 28 warning about potential risks in multifunction crypto-asset intermediaries (MCIs). The report highlighted vulnerabilities similar to traditional finance including leverage, liquidity mismatches, technology and operational vulnerabilities and interconnections.
MCIs engaging in proprietary trading, market making, and lending and borrowing of crypto-assets could exacerbate these vulnerabilities.
The FSB called for enhanced controls and transparency to address these risks while emphasising the centrality and market power of MCIs in the crypto asset ecosystem. The report suggested additional regulatory measures to prevent a recurrence of market turmoil similar to the FTX scandal.
XRP's Potential Boom due to Ripple's Collaboration with HSBC
Ripple's XRP token is gaining attention as its price found support at USD 0.61 breaking a 20% fall that began on November 7. The positive development follows a collaboration between Ripple and HSBC where HSBC chose Ripple as its custody technology. Analysts see this partnership as a sign of financial institutions adopting the XRPL and more importantly the XRP token.
The potential for XRP's upward movement is supported by technical analysis including the formation of an inverted Head and Shoulders pattern and the Awesome Oscillator showing bullish signals. However caution is advised with the bullish thesis contingent on defending the critical support at $0.61.
We’re witnessing a dynamic interplay of bullish and cautionary sentiments leading into the end of 2023 which is setting the sector up for a wonderful bullish 2024. While optimistic predictions for Bitcoin's future and the resurgence of Terra Classic USD bring positivity it’s important that we don’t overlook the FSB's report which showcases the need for regulatory vigilance.
Ripple's XRP supported by its collaboration with HSBC faces both potential upsides and regulatory uncertainties which adds to the confusing nature of the crypto regulatory landscape. Traders and investors must navigate these complexities with a thorough understanding of the evolving market dynamics which at times is near impossible.
image sources provided supplemented by canva pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services
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