These incentives could boost Bitcoin, BitBot and Ethereum in 2024.

Bitcoin, Ethereum and other cryptocurrencies have entered a consolidation phase as investors ponder the recently approved ETFs. BTC is stuck at $43,000, while most altcoins are back in double digits. As I wrote on Monday, the crypto fear and greed indicator moved to a neutral point. This article highlights two key trends that could impact Bitcoin, BitBot and Ethereum in 2024.

Bitcoin will be halved in April

The first important boost that could benefit Bitcoin, Ethereum and BitBot is the upcoming halving event scheduled for April. A halving is a situation in which Bitcoin rewards are reduced to half. In this case, the number of Bitcoin daily rewards will decrease from 900 to about 400.

Halving is an important method because it ensures a balance between supply and reward. If this halving was not included in the software, the number of coins in circulation would be much higher.

Historically, the value of Bitcoin and other cryptocurrencies will perform well before a halving event. The same situation may happen this year. If this happens, the coin may rise and then other cryptocurrencies such as Ethereum, Cardano and Solana will rise significantly.

Keep in mind that this halving comes just a few months after the SEC approved eleven Bitcoin ETFs. This means that the halving event coincides with a period of strong demand for the world's largest crypto medium.

The Federal Reserve will lower the rate

Another important boost for BitBot, Bitcoin and other coins is the interest rates that come with declining inflation. A majority of Fed officials have voiced support for rate cuts later this year. However, they pushed back against the view that the cuts would begin in March.

This view is reasonable because recent economic numbers show that the US is prospering, with wages rising and unemployment rates low. The economy expanded by 3.3% in the fourth quarter, beating the average estimate of 2.2%.

Therefore, it makes sense for the Fed to wait for the economy and inflation to cool down before initiating rate cuts. What is clear is that the Fed will start reducing rates in the second half of the year. In most cases, Bitcoin and other cryptocurrencies do well when the Fed cuts rates.

Approval of Ethereum ETF

There are also signs that the Securities and Exchange Commission (SEC) will approve an Ethereum ETF. Some analysts expect the agency to make that certification in May this year. If this happens, it will generate huge returns from institutional investors, as we have seen with Bitcoin.

However, since BTC and ETH are very different assets, there are risks that the SEC will not address. The SEC believes that Ethereum is a security due to its inherent characteristics. It sees Bitcoin as a digital commodity. Still, waiting for this ETF's approval could push these coins higher.

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