Coinbase, the largest cryptocurrency exchange in the United States, has released a report identifying several key factors that could trigger a Bitcoin bull run in 2024. The report is centered on crucial elements such as the United States Federal Reserve’s (FED) upcoming decisions, Spot Bitcoin ETFs, and the fast-approaching Bitcoin halving event this year. 

Macro-Economic Factors To Impact 2024 Bull Run

On Friday, February 2, Coinbase published a research report revealing the diminishing influence of certain technical factors that had previously exerted pressure on the crypto industry. Consequently, the crypto exchange suggested a possible shift towards macroeconomic factors, which are likely to impact the crypto market and potentially bolster the performance of digital assets to kickstart the 2024 bull run. 

The report highlighted significant events, such as the FED’s disclosure of its interpretation of the current economic situation in the US and the Federal Open Market Committee’s (FOMC) acknowledgment of a more enhanced balance in risks related to inflation goals and employment achievements. Additionally, deliberations on the quantitative tightening (QT) program have also been officially postponed to March 2024.

Coinbase anticipates that these developments point towards a potential easing cycle commencing around May 1, possibly resulting in an end to the FED’s balance sheet reductions by June 2024. The crypto exchange has predicted a 100 basis points rate cut by the FED this year, aligning with historical patterns of cautious policies during an election year. 

Bitcoin Halving and Spot Bitcoin ETFs To Fuel Optimism

Coinbase has revealed that its projections for the US economy are expected to coincide with crypto market drivers like the Bitcoin halving event slated for April. The crypto exchange expects these combined factors to propel Bitcoin and other major tokens by the second quarter (Q2) of 2024. 

In the report, Coinbase also predicted that Spot Bitcoin ETFs would significantly impact the crypto market’s overall recovery. The exchange anticipates more impactful advertising from Bitcoin ETF issuers and the inclusion of Spot Bitcoin ETFs in asset managers’ model portfolios. This would effectively increase the adoption of digital investment assets and unlock a large amount of liquidity for the market. 

Overall, the crypto market is anticipated to maintain a positive trajectory, with the possibility of bullish sentiment dominating the market following the halving event. Encouraging signs are indicated by the ongoing liquidations at FTX and the resurgence of defunct crypto organizations from bankruptcy. 

Additionally, there has been a daily influx of over $200 million into Spot Bitcoin ETFs since early January, resulting in total net inflows amounting to $1.46 billion after the approval of Spot Bitcoin ETFs on January 10. The cumulative daily trading volume also stands at approximately $1.35 billion.