In the dynamic world of cryptocurrency, industry leaders are optimistic about the start of a new bullish phase, with growing anticipation for Bitcoin to reach fresh all-time highs above $100,000 in 2024.
Bitcoin has experienced a remarkable rally, surpassing a 120% increase this year alone, leading many enthusiasts to believe that this upward momentum will persist into the coming year.
Last week, Bitcoin closed at approximately $37,450. The market experienced considerable volatility during the week, triggered by the US Department of Justice’s settlement with Binance, the world’s largest crypto exchange. The announcement of the settlement and the departure of Binance’s CEO led to a temporary market dip, with BTC briefly trading at $35,700. The negative sentiment was quickly followed by positive news, including Binance facing no further regulatory action, contributing to the renewed stability in the market.
The beginning of the new week was marked with BTC trading at a price of $40.665. A new high for this year.
2023 seems to go in the books as year to get ready for the bull run that is yet to come. The sentiment is very hopeful for 2024 and 2025.
Despite the crypto industry facing challenges such as coin collapses, project failures, bankruptcies, and criminal trials, recent high-profile cases involving exchanges like FTX and Binance are seen by many as a turning point. Some industry insiders believe that the speculative phase is nearing its end, allowing a shift towards constructive development and problem-solving within the cryptocurrency space.
It seems that the speculative phase is out of the way, leaving room for real builders focusing on the technology and problem solving.
The attention is now turning to positive developments. Firstly, there is growing excitement around the potential approval of a Bitcoin exchange-traded fund (ETF). If approved, this could attract larger traditional investors, marking a significant milestone in Bitcoin’s mainstream adoption.
The second noteworthy development is the scheduled Bitcoin halving in May 2024. This event, occurring every four years, involves cutting rewards for miners in half, thereby limiting the supply of Bitcoin. Historically, this has been a catalyst for new rallies in the cryptocurrency market.
Investors are closely monitoring these developments, with a particular focus on the potential ETF approval and the upcoming halving. Matteo Greco, Research Analyst at the publicly listed digital asset and fintech investment business Fineqia International (CSE:FNQ) noted the following:
“the approval of US-based Bitcoin Spot ETFs could not only likely bring a capital influx but also inject significant liquidity into the market, fostering more stable prices and facilitating more favourable trades on both digital assets exchanges and financial instruments incorporating digital assets as underlying assets.”
Bold predictions for Bitcoin in 2024 have already surfaced now, forecasting that Bitcoin could reach $100,000 by the end of 2024, driven by the approval of various ETFs. This would represent a substantial 160% rally from the current price.
Furthermore, Matrixport, a crypto financial services firm, projected a price of $63,140 by April 2024 and a staggering $125,000 by the end of the next year. Their report highlighted factors such as an anticipated decline in inflation and potential interest rate cuts by the Federal Reserve as contributors to Bitcoin’s potential new highs in 2024.
As the cryptocurrency landscape evolves, industry leaders and investors alike are eagerly anticipating a transformative year ahead, filled with potential milestones and new heights for Bitcoin.
