Bitcoin (BTC) is currently striving for a sustained rally as it seeks a new all-time high following a period of volatility at the beginning of the year. Notably, Bitcoin has set its sights on the $50,000 mark, with market players highlighting the recently approved spot exchange-traded fund (ETF) and the upcoming halving as key catalysts.

In this context, Hunter Horsley, the CEO of the crypto index fund manager Bitwise Invest, suggested that 2024 is poised to unveil the true valuation of Bitcoin in the capital markets.

In an X (formerly Twitter)  post on February 9, Horsley noted that the advent of Bitcoin ETFs has significantly altered the landscape of Bitcoin pricing, allowing a broader market participation that was previously limited.

“Forget what you knew about Bitcoin’s price. In 2024, we’re going to discover how the full capital market actually values Bitcoin,” he said.

According to the executive, the market has entered a new era of Bitcoin price discovery, noting that the market will determine the value of the maiden cryptocurrency.

The introduction of Bitcoin ETFs has opened the doors for a more diverse group of investors, expanding the number of bidders in the market. Horsley likened this to a scenario where the demand for a house surged tenfold, signaling a significant shift in the dynamics of Bitcoin pricing.

Changing Bitcoin market structure

In response to Horsley’s statement, David Lawant, the head of research at digital assets prime brokerage firm Falcon X, expressed his agreement. In his view, Lawant noted that the Bitcoin market structure had already changed.

“The Bitcoin market structure already started to change (for the better). For example, volumes around the ETF fix time as a percentage of total daily volumes (for USD pairs) dramatically increased post the spot ETF launches,” he said.

Lawant’s observations suggest that introducing Bitcoin ETFs has positively impacted market structure, decreasing volatility. The fix time, a designated time for trading activities related to ETFs, has witnessed a notable uptick in trading volumes, indicating a broader and more stabilized market.

Indeed, the two experts’ perspectives on the upcoming Bitcoin price trajectory emerge as BTC faces positive sentiments linked to a potential slowdown in outflows from the Grayscale Bitcoin Trust ETF. It’s worth noting that Bitcoin failed to rally after the ETF approval, with analysts pointing to profit-taking from GBTC.

Meanwhile, Bitcoin was trading at $48,130 at press time, showing daily gains of nearly 2%.