As the crypto market marches into 2024, several industry experts and financial analysts have recently done so form their respective Bitcoin (BTC) predictions for the year.
Among the voices offering insights, Mark Mobius of Mobius Capital Partners LLP stands out for his historically accurate predictions.
After correctly predicting Bitcoin’s fall to $20,000, Mobius now predicts a climb to $60,000 by the end of the year. This optimism is further echoed by Youwei Yang, chief economist at crypto mining company Bit Mining, who expects a high of $75,000 for Bitcoin in 2024.
Yang’s predictions depend on a combination of the upcoming Bitcoin halving, which is expected to limit supply, and the potential influx of institutional investment following the approval of a spot ETF in the US.
The catalysts behind the predictions
The idea of a temporary approval of Bitcoin ETF in the US is a central theme in these bullish predictions. The anticipation of such an event has sparked excitement within the crypto community, drawing parallels with similar financial instruments and their impact on related markets.
James Butterfill, head of research at CoinShares, believes that a spot ETF approval in the US would mark a “significant change” in the digital asset landscape, potentially bringing cryptocurrencies more closely integrated with traditional financial markets. As for the prediction, Butterfill noted:
Estimates suggest that a 20% increase in investments in current assets under management (approximately $3 billion) could potentially push the Bitcoin price to $80,000.
Butterfill also pointed out that potential interest rate cuts by central banks could significantly contribute to an increase in Bitcoin’s value.
Bitcoin Predictions for 2024 Above $100,000
Antoni Trenchev, co-founder of the cryptocurrency exchange Nexo and a well-known Bitcoin advocate, raises the prediction bar and maintains his prediction that Bitcoin could rise to $100,000 by 2024. Despite initially predicting this target for 2022, Bitcoin’s price fell instead. of reaching the expected high.
Trenchev reaffirms his stance, attributing his renewed $100,000 2024 forecast to the upcoming Bitcoin halving and the possible green light for several spot Bitcoin ETFs in the US. Trenchev expects these two factors to act as a double catalyst, pushing Bitcoin’s value towards the $100,000 mark, with prospects for even higher peaks in 2025.
However, Trenchev warns about the unstable journey to this goal, predicting fluctuations and significant declines along the way.
In addition to Trenchev’s predictions, Carol Alexander, professor of finance at Standard Chartered and the University of Sussex, also foresees Bitcoin potentially reaching $100,000 by 2024. Alexander suggests this depends on the ability of market maker algorithms at major financial institutions like Blackrock and Fidelity to moderate market volatility.
Echoing these sentiments, Matrixport, a company specializing in crypto-financial services, expects Bitcoin to reach $125,000 by the end of the year. The company noted:
Based on our inflation model, the macro environment is expected to remain a robust tailwind for crypto. Another decline in inflation is expected, which will likely prompt the Federal Reserve to cut interest rates. Combined with geopolitical crosscurrents, this healthy dose of monetary support should push Bitcoin to new highs in 2024.
Venture capital firm CoinFund comes up with one of the most ambitious predictions: managing partner Seth Ginns predicts that the value of Bitcoin will be between $250,000 and $500,000 by 2024.
Ginns attributes this potential increase to factors such as the declining correlation with the dollar and real interest rates, the expected impact of newly launched BTC spot ETFs in the US, and the excitement about potential ETH spot ETFs.
Featured image from Unsplash, chart from TradingView
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