Bitcoin‘s (CRYPTO: BTC) price rose by nearly 50% in the first half of 2024. Three main catalysts fueled that rally: the Securities and Exchange Commission’s approval of the first spot-price Bitcoin exchange-traded funds (ETFs) in January; the halving in April, which cut mining rewards in half and slowing the growth in supply on new coins; and investors’ hopes that the Federal Reserve would start cutting benchmark interest rates. The rally was helped by bullish price forecasts, such as the prediction by Ark Invest’s Cathie Wood that a single Bitcoin would be worth $1.5 million by 2030.
But over the past month, Bitcoin’s price has declined by about 20% as it faced two major headwinds: the long-awaited disbursement of bitcoins from the failed cryptocurrency exchange Mt. Gox, and the German government’s liquidation of thousands of bitcoins it seized from the movie piracy operation Movie2k. Should investors buy Bitcoin after this steep pullback?
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