Bitcoin could be on track to reach well into six figures by 2024, analysts say, thanks to a confluence of factors that all stand to increase demand and restrict supply. The leading cryptocurrency recently topped $40,000 for the first time since its crash in 2022, and many investors are anticipating considerably more upside ahead.
Keypoints
- Bitcoin could reach $160,000 in 2024 due to upcoming halving event, spot ETF hype, and potential Fed rate cuts
- Bitcoin has historically rallied after its halving events, which reduce the supply of new coins
- Over 7 major finance firms like BlackRock are seeking SEC approval for spot bitcoin ETFs
- Analysts predict bitcoin could hit $1 million soon after a spot ETF is approved due to massive new demand
- Upcoming bitcoin halving in 2024 expected to create supply shock and push prices higher
A major driver expected to push bitcoin prices higher is the upcoming halving event in April 2024. Bitcoin’s code is written to cut the reward for mining new blocks in half every four years or so. With fewer new coins entering circulation, increased scarcity often leads to higher valuations. Bitcoin has rallied strongly in the 12-18 months following its previous halvings.
In addition, over 7 major financial institutions like BlackRock have bitcoin spot ETF applications in the works. Approval from the SEC could unlock a torrent of new institutional demand almost overnight. “You’re hitting a very limited supply of bitcoin on exchanges and availability for purchase with a torrent of money,” said Jan3 CEO Samson Mow. The influx could be enough to push bitcoin to $1 million “in days to weeks”, he added.
Former Coinbase CTO Balaji Srinivasan has also predicted seven-figure bitcoin prices after the highly anticipated ETF approvals. The ETFs would finally give institutional investors an easy avenue to gain exposure to bitcoin. Retail traders would also benefit from the additional liquidity ETFs would bring.
The stars seem aligned for considerably more upside as well: the Fed is projected to start cutting rates again by 2024. Lower rates tend to benefit riskier assets like bitcoin. In addition, bitcoin and the stock market have been strongly correlated recently. Any gains in equities could lift bitcoin in tandem.
The confluence of spot ETF approvals, the upcoming halving, potential Fed rate cuts, and growing mainstream adoption have analysts extremely bullish on bitcoin’s trajectory over the next year. Six-figure predictions may have once seemed overly optimistic, but increased scarcity and demand could make $100k+ bitcoin a reality sooner than many expect.
