FX.co ★ What catalysts can propel BTC rally to $1 million

Halving effect

Analysts reckon that the halving event is one of the key reasons behind Bitcoin’s imminent rally. This occasion makes a positive impact on BTC’s dynamic. Halving is an algorithmic occasion when the reward for mining new blocks is slashed twice. As a result, the number of tokens in circulation decreases by 50%. In turn, Bitcoin’s price rallies. For the time being, the countdown has begun. The halving event is scheduled for May 2024. Experts are betting on the stunning growth of the most popular cryptocurrency by that time.

Growing interest among institutional investors

Experts say that the second reason behind Bitcoin’s rally is the growing interest among institutional investors. Analysts acknowledged the fact after Larry Fink, Chairman and CEO of the asset management giant BlackRock, all of a sudden revised his attitude to Bitcoin. The increasing institutional interest is certainly bullish for the flagship crypto. In June, the firm unexpectedly applied with the US Securities and Exchange Commission to launch a spot Bitcoin exchange-traded fund. Other companies quickly followed suit, having lodged similar applications with the US SEC.

BTC’s popularity as mainstream payment means

At present, Bitcoin is rapidly adopted as a mainstream payment means. Earlier, the token was widely used for online shopping, but the hype faded shortly after. Nowadays, most e-commerce companies and the IT sector offer customers the option to pay for services and products in crypto. Besides, more and more ATMs around the world support transactions with BTC. Coin ATM Radar, the firm tracking relevant ATMs, estimates that 36,316 crypto ATMs are installed in 71 countries worldwide. They serve 236,756 ATM operators providing BTC exchange. Interestingly, the transaction speed is steadily gathering pace.

Benign legal environment for BTC

The fourth bullish factor is that the number one crypto is winning favor with global regulators and governments in numerous countries. For instance, Japan’s monetary authorities greenlight digital assets, leading crypto platform Binance pointed out. Analysts also refer to Malta as another example of a welcome environment for the most popular crypto. This country has outpaced others as it was among the first to establish a legal framework for the regulation of virtual assets.

BTC as safe-haven asset

Last but not least, there is one crucial factor behind Bitcoin’s investment luster. On the back of the global economic crisis, market participants are shifting focus to BTC as a safe-haven asset. A lot of experts have serious doubts about the resilience of the US dollar and the US economy. So, a good solution would be investments in gold and Bitcoin. Many analysts view these assets as preferable to fiat money. Currency strategists are on the same page, saying it makes sense to bet on BTC’s strength. Crypto fans anticipate that the main digital token is set to surge to $1 million under favorable fundamentals.