An expert identified five catalysts for Bitcoin growth above $70,000

IntoTheBlock's Chief Research Officer, Lucas Outumuro, highlighted five key factors that, in his opinion, will contribute to Bitcoin's growth beyond the $70,000 mark.

Halving:

An expected halving of miner rewards by half, from 6.25 BTC to 3.125 BTC per block, scheduled for April. This will lead to a 50% reduction in miner revenues, likely reducing the network's hash rate, as happened after the previous halving in 2020.

Exchange-Traded Funds (ETFs):

The ongoing influx of funds into Bitcoin-based spot ETFs suggests that this factor will also support growth. In the month of existence of such products, over $4 billion has been invested in them.

U.S. Federal Reserve (FRS):

The Federal Reserve's tough policy on interest rates in 2022 lays the foundation for a bearish cycle not only in the cryptocurrency market but also in other risky assets. It is expected that the reduction in inflation by 2024 will lead to a softening of the FRS policy through a reduction in interest rates and a resumption of quantitative easing.

Elections:

The bias of the FRS towards the Democratic Party could be an additional factor supporting the economy to increase the chances of the re-election of U.S. President Joe Biden. Pre-election campaigns have a positive impact on the cryptocurrency market, despite the overall skeptical position of the country's leader regarding digital assets.

Accumulation:

An inconspicuous but significant factor in Bitcoin's growth, according to Outumuro, is interest from treasuries and hedge funds. He emphasizes that after Bitcoin's recovery in 2020, traditional financial giants like Paul Tudor Jones expressed interest in cryptocurrencies. The launch of spot Bitcoin ETFs provided hedge funds with the opportunity to "accumulate" a new class of assets.