Bitcoin (COIN: $BTC) has been hovering around the $60,000 mark for a while; analysts believe that it is unlikely to rise to $100,000 before the end of 2024. Here is a closer look at the price forecasts for Bitcoin in 2024.
Bitcoin (BTC) Performance in 2024
The Bitcoin spot price (BTC/USD) is up around 46.13% year to date as of Wednesday October 2, 2024 to $61,186.38 per coin. At one point, it surged over 70% to new record highs after the launch of Bitcoin ETFs in the Us in the first quarter of 2024. Another factor that drove its surge was the halving event that occurred on April 19, and anticipation of Fed rate cuts.
However, the Bitcoin halving event was mainly symbolic and did not have a significant impact on the price of BTC. It made Bitcoin less profitable for less efficient mining rigs, which is expected to lead to a consolidation of the Bitcoin mining hash rate.
Another factor that has not panned out thus far is the Fed’s rate cut. Since the Fed announced its first rate cut, the impact on the price of BTC has been minimal. For instance, the price of BTC has only increased 7.2% in the past month. In other sectors, that would be a huge price movement, but it is considered muted in the crypto world.
Bitcoin Price Forecast For The Rest of 2024
Bitcoin’s price for the remainder of 2024 could be influenced by various bearish and bullish catalysts. In 2023, the crypto sector was impacted by various enforcement actions by US federal agencies. The biggest was a lawsuit by the CFTC against Binance, and its founder CZ.
The crypto exchange settled with the DoJ and the US Treasury, with CZ stepping down from the exchange as part of the deal. Most importantly, Binance was not found to have misused any of its customers’ funds, which could have triggered a bank run, tanking crypto.
The Federal reserve recently announced its first rate cut. Going forward, crypto could become an attractive option for investors looking for a hedge against debasement of fiat currencies. Recent CPI data also shows that inflation is cooling down, which could free up funds for investment in crypto.
One of the biggest bullish catalysts working for Bitcoin’s future price is the launch of Bitcoin ETFs by notable investment firms like Fidelity and BlackRock. These are trusted brands in the investment world, renowned for meticulous risk assessment.
Their stamp of approval will help persuade investors to make investments in Bitcoin. While not immediate, the capital inflows could positively impact the price of BTC in the long term. The launch of the ETFs helped Bitcoin to shed the reputation of being shady.
How High Could Bitcoin Rise in 2024?
While Bitcoin’s price has remained relatively stable in 2024, some analysts believe it could rise to new highs by the end of 2024. They believe the price could rise above its most recent high of $73,750 and potentially reach $80,000.
To hit $100,000, Bitcoin would need to rally over 55%. In the legacy financial world, this may seem extreme. However, Bitcoin has a long history of extreme volatility. A good example of this is 2023 when the price of BTC surged nearly 156%. Based on this pattern of volatility, $100,000 does not appear to be outside the range of possibilities.
Going into 2025, if the macroeconomic conditions are favorable for high-risk assets and the Fed continues its campaign of rate cuts, there is a possibility it could rise to $150,000, according to some analysts.
Analysts remain mostly bullish on the upside potential of Bitcoin (BTC) both in the medium term and long term.
Should You Add Bitcoin To Your Portfolio?
Adding Bitcoin to your portfolio is a high-risk, high-reward strategy. For you to make the best investment decision, it is important to understand all the factors that could influence its price. Overall, the market sentiment is bullish on the future price of BTC. In both the medium and long term, analysts forecast an upside potential for the leading cryptocurrency by market cap.
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