‘Does Bitcoin become this God Candle event in 2024? It could, IF…’

• Institutional adoption of Bitcoin might possibly lead to a ‘God Candle’ event
• Expert believes that while probable, a consistent upward trend over several months is more likely

As 2024 unfolds, the cryptocurrency sector is seeing a significant shift towards the institutional adoption of Bitcoin (BTC). In fact, analysts anticipate this trend to accelerate soon too. The entry of reputable asset management firms like BlackRock and Fidelity into the crypto-space during the bear market underlined their belief in Bitcoin’s long-term potential.

The increasing involvement of major financial institutions and the approval of spot Bitcoin exchange-traded funds (ETF) in the United States have been pivotal factors as well. 

Expecting a ‘God Candle?’

Amidst these developments, traders and analysts are expecting a major surge in the value of Bitcoin. Especially since this is a halving year for the cryptocurrency. Historical precedents play a role in having such expectations too. Such as Bitcoin’s price appreciation after Tesla’s $1.5 billion investment announcement.

The concept of a ‘God Candle’ in trading refers to a massive, sudden price surge on a trading chart, typically driven by a significant market developments or news. This was the topic of a recent discussion between Scott Melker and James Lavish, a former hedge fund manager. When asked about the possibility of a Bitcoin God Candle in 2024, Lavish said,

“Does Bitcoin become this god candle event? It could, if liquidity dries up, you could have this massive candle. But, it’s more of a consistent set of candles upwards over the period of next few months that will really drive this price higher.”

The potential for such a dramatic price increase in Bitcoin is supported by trends and market dynamics. The introduction of a spot Bitcoin ETF is especially making Bitcoin more accessible to a wider range of investors, potentially increasing demand.

There’s no stopping the flood of institutional capital that is coming to #Bitcoin@jameslavish explained this morning on Macro Monday. pic.twitter.com/XJpMg8Akc7

— The Wolf Of All Streets (@scottmelker) January 30, 2024

James Lavish’s view on the institutional adoption of Bitcoin

In the interview, Lavish was also asked about his views on the rising potential of Bitcoin’s institutional adoption. Scott Melker wanted to know whether BTC can truly gain institutional adoption in the near future. Especially since some investors believe that institutional adoption may be a bubble.

Lavish commented,

“Of course, we didn’t get the institutional adoption instantaneously, that takes a little bit of time. But, as we do see, the institutions that lean into this have a little bit of education around it. People are looking for digital gold, and as they get to the understanding of it, that’s the key.”

Regulatory landscape and future outlook

It’s worth noting that the regulatory landscape is constantly evolving across jurisdictions. For example, UK’s government recently confirmed plans to introduce formal legislation for crypto-activities in 2024, aiming to support market integrity and financial stability.

As institutional recognition of Bitcoin’s value grows, the cryptocurrency landscape will undergo more transformative changes. There is a promising future of deeper integration, increased acceptance, and a more diversified financial ecosystem where BTC plays a pivotal role.