• Key factors supporting this bullish outlook include increased institutional accumulation of Bitcoin and a potential $16 billion liquidity influx from FTX’s creditor distributions.
• Analysts predict a potential 171% increase in Q4 2024, driven by favorable conditions such as the recent interest rate cut by the Fed.

The Bitcoin (BTC) price has significantly recovered over the past week, climbing nearly 8% to $63,400. This recent upward movement suggests that crypto bull sentiment is strengthening, potentially leading to a further rally.

Hence, market experts are speculating that Bitcoin could see a remarkable 171% surge in the fourth quarter of 2024, considering past performance in the halving year.

Key Factors For Bitcoin Price Rally In Q4

One of the primary catalysts for this optimism is the recent 50 basis point interest rate cut by the U.S. Federal Reserve. This move has injected liquidity into the financial system, providing a favorable environment for risk-on assets like Bitcoin. Historically, Bitcoin has thrived during periods of monetary easing.

Moreover, the Bank of America (BofA) expects a 0.75% Fed rate cut in the fourth quarter, which could trigger further BTC price appreciation. Additionally, Bitcoin’s recent Halving event has set the stage for potential long-term price growth.

Since the halving, the flagship crypto has been trading in a consolidation range between $50,000 and $70,000. However, with the Fed’s liquidity boost, analysts are predicting that Bitcoin could break out of this range and enter a new rally phase. Financial giants like BlackRock also see Bitcoin as a hedge to US debt, reported CNF.

In previous halving cycles, BTC has experienced notable gains, including a 61% increase during Q4 2016 and a 171% rise in Q4 2020. According to analyst Ali Martinez, if the crypto follows this historical pattern, its price could surge to between $100,000 and $172,000 by the end of the year.

Moreover, on-chain data supports this bullish outlook. Over the past few weeks, key metrics have improved, and large institutional players are continuing to accumulate Bitcoin. 

For instance, MicroStrategy, one of the largest corporate holders of Bitcoin, recently purchased an additional $458.2 million worth of BTC, reported CNF. Furthermore, BTC could rally higher with increased stablecoin issuance and rising leverage in the futures market.

According to a recent report by 10X Research, these factors point to a higher likelihood of BTC breaking out to the upside as we head into the fourth quarter. However, for such an upsurge, Bitcoin price will need to surpass the critical $65,000 resistance level.

FTX Distribution & ETF Performance

The CNF report reports that the bankrupt crypto exchange FTX’s upcoming distribution of $16 billion to creditors could fuel a rally. Many believe that a significant portion of this liquidity will flow back into Bitcoin and the broader crypto market, further fueling a BTC price surge.

Additionally, the U.S. spot Bitcoin ETF market has also seen increased interest. These products registered inflows of $397 million last week alone, led by Fidelity’s FBTC ETF. Also, prominent investors like Robert Kiyosaki and Anthony Scaramucci believe that BTC will break the $100,000 before this year concludes.

Moreover, as BTC regained momentum, analysts are now optimistic about the onset of the altseason in the coming weeks. Ethereum’s price showed remarkable 16% gains last week.