For the past two months, Bitcoin (CRYPTO: BTC) has lived up to its reputation as one of the most volatile assets in the world. After hitting a new all-time high of $73,750 in mid-March, Bitcoin quickly dropped below $57,000 by the end of April.

For now, Bitcoin has recovered nicely to the $62,000 level. But questions still remain about where Bitcoin is headed in 2024. Is Bitcoin overvalued or undervalued at its current price? To answer that question, let's take a closer look at two key catalysts.

It all starts with the new spot Bitcoin exchange-traded funds (ETFs). For the first four months of 2024, massive investor inflows into these ETFs have led to a huge rally in Bitcoin's price. The new spot Bitcoin ETFs -- led by the iShares Bitcoin Trust (NASDAQ: IBIT) and the Fidelity Wise Origin Bitcoin Fund -- quickly accumulated more than $30 billion in assets under management. They have found widespread investor acceptance. At one point, the iShares Bitcoin Trust had a 71-day streak of net positive inflows.

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Source Fool.com