Lyn Alden Compass Mining: Unpacking the Factors Behind Bitcoin's Bull Run

The cryptocurrency market has been abuzz with excitement as Bitcoin (BTC) continues its upward trajectory, reaching new heights and breaking out of previous resistance levels. For those who have been following the market closely, it's no surprise that analysts are now predicting a phenomenal year for BTC in 2024. One key factor driving this optimism is the upcoming Bitcoin halving event in April, which will reduce daily BTC production by approximately 450 BTC from its current average of 900 BTC.

However, it's crucial to understand that the halving is just one part of the equation. According to Lyn Alden, investment researcher and expert at Compass Mining, there are multiple factors contributing to the bullish outlook for Bitcoin in 2024. In an exclusive interview with Cointelegraph, Alden highlighted the importance of global liquidity, HODL waves, and other catalysts that will drive demand for BTC.

One significant factor is the current state of global liquidity, which has improved significantly since the last bull market in 2021. As Thielen, CEO and head analyst at 10x Research, noted, 'When Bitcoin made a new high at $68,300, we saw a wave of intraday selling, but every attempt to push down prices has been met with relentless buying.' This surge in demand is expected to continue, driving the price of BTC higher.

Another critical factor is the halving event itself. While some may view it as a minor adjustment in the supply chain, Alden emphasized that it's only one part of the equation. 'In fact, inflows or outflows can easily exceed 10x of that value,' she said. The real driver of price movement lies in overall demand for Bitcoin, which is expected to increase significantly this year.

The halving event will also lead to a reduction in daily fiat flows into and out of crypto exchanges and Bitcoin exchange-traded funds (ETFs). This decrease in supply will be offset by increased demand from investors seeking to capitalize on the bull run. As Alden noted, 'So I think the halving is important, but it's only one factor out of many that determines the occurrence and timing of a bull market.'

Industry analysts are also bullish on Bitcoin's prospects in 2024. Thielen predicted that BTC will reach $77,000 by early April and $99,000 by May 2024, based on historical price changes and recent new highs. Other experts have echoed this sentiment, citing the cryptocurrency's strong fundamentals and growing adoption rates.

In conclusion, while the Bitcoin halving event in April is undoubtedly an important milestone for BTC enthusiasts, it's just one part of a larger equation driving the bull run. According to Lyn Alden Compass Mining, global liquidity, HODL waves, and other catalysts will combine to create a perfect storm of demand, propelling the price of Bitcoin higher throughout 2024. As investors continue to pour into the market, it's clear that this year will be one for the record books.

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