Bitcoin & The Crypto Market Could See Volatility In The Months Ahead

We are now four weeks into 2024 and it has certainly been a disappointing start of the year for crypto.

 The spot Bitcoin ETF approvals haven't ignited the crypto market as expected and instead, we saw a strong sell off especially with Bitcoin. 

 And whilst Bitcoin is up 11% over the past seven days and many other crypto coins have seen larger gains, there has been a worrying development.

 A Hong Kong court has ordered the liquidation of Evergrande, a huge Chinese property development company and whilst this company has nothing to do with crypto, the ripple effects of this could hit the crypto market soon. 

 A lot of companies had exposure to Evergrande including BlackRock and HSBC and most if not ALL of these companies hold Bitcoin and Ethereum. 

 So what could happen is many of these companies could sell off a large chunk of their Bitcoin and Ethereum which could have negative effects for crypto in the next few weeks. 

 If mass liquidations happen, we could see Bitcoin dip as low as $30,000 and if this happens, their will be a sell off in the wider crypto market. 

 So the takeaway here is that the period between now and the Bitcoin halving in April could be volatile. 

 But it's not all bad. 

 Whilst we may see volatility in the next few months leading up to Bitcoin's halving, I think it will be after the halving event where we will see Bitcoin and the wider crypto market rallying. 

 So in many ways, the next few months might be a good time to buy positions (not financial advice!) because once Bitcoin and the wider crypto market start rallying, bargains will be hard to come by. 

So it really is a case of watching and waiting and maybe time to buckle up as crypto could see choppy waters in the near future.

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