The first-ever cryptocurrency finishes 2023 with a new annual high: on December 5, Bitcoin reached $44,400 (+18% since the beginning of December). The last time BTC traded at this level was in April 2022. The coin skyrocketed amid positive developments and anticipated news in 2024, such as halving, the possible approval of spot Bitcoin ETFs in the US, and a Federal Reserve (FED) key rate reduction.
Learn about Bitcoin’s 2024 predictions provided by experienced experts and understand why many believe that BTC will soon skyrocket.
Why Bitcoin can rise in 2024
Bitcoin has four reasons for growth next year: the approaching halving, the potential launch of the first spot Bitcoin ETF in the United States, the resolution of Binance’s conflict with American regulators, and a reduction in the key rate. Let's take a closer look at each of them.
Reason 1: Halving is coming
BTC is a deflationary coin with a limited supply. The intention of its creator, Satoshi Nakamoto, was to make every coin more expensive over the years. Limited supply and halvings are responsible for Bitcoin's value.
📍 The number of Bitcoins is limited; only 21 million coins will be mined.
📍 Halving involves reducing the speed of mining (coin production) by half. It occurs once every 4 years, or every 210 blocks mined, creating a shortage of BTC in the market. Scarcity provokes demand, and the coin becomes more expensive than before.
The next Bitcoin halving will take place in April 2024. Observations show that after halvings, Bitcoin always sets new all-time highs. Check out the rainbow chart below.
Halvings are vertical blue lines; the black curve is the Bitcoin rate. The lower blue part of the rainbow is the lows, and the upper red part is the highs.
We are now in the blue zone of lows, right before the halving. Investors have definitely got reasons to believe that halving will forward BTC once again, which means now is a great time to buy the cryptocurrency.
Reason 2. Perhaps in 2024, the first-ever spot Bitcoin ETF in the US will be approved
ETF is short for Exchange Traded Fund. It allows you to invest not in cryptocurrency directly but through a fund instead. This is legal even where digital assets are illegal, and this is also how companies that are not allowed to buy crypto can earn from cryptocurrency growth.
The crypto community believes that a spot Bitcoin ETF will make it easier for big investors to access BTC. As a result, their money will pour into the crypto market and support growth.
Bloomberg analysts believe that the first spot Bitcoin ETF will be launched in the United States in January 2024, potentially leading to active BTC growth right after the New Year.
Reason 3. The fight between the largest crypto exchange, Binance, and American regulators has begun to be resolved
Binance is the largest crypto exchange on the market. According to Reuters, it came under the radar of American regulatory authorities in 2018. In November 2023, Binance finally reached an agreement with regulators. Terms force the company to leave the country, pay a $4 billion fine, and switch its CEO. Now, Changpeng Zhao is considered a hero, and talk of a possible stock exchange collapse has ceased.
The crypto community has not yet healed from the FTX bankruptcy wound, which used to be one of the largest crypto exchanges. It crashed in November 2022, forcing the entire market to reach new lows. Binance is bigger than FTX ever was, so its collapse could bring huge damage. Resolving Binance’s conflict with several US authorities at once allowed everyone to catch their breath.
Reason 4. The American Federal Reserve may soon begin to reduce the key interest rate
The key interest rate is the percentage the central bank uses to lend money to banks. The higher the rate, the more expensive the loans and the higher the interest on deposits.
When the rate rises, it becomes more profitable not to spend but to save—for example, to skip another trip and put money in the bank at interest instead of it.
A key rate reduction works the other way around and increases purchasing activity. Money starts reaching high-risk assets — cryptocurrencies. So, it turns out that the Fed’s move towards lowering rates is good news for the crypto industry.
Bitcoin forecast for 2024
Many crypto influencers and analysts at large financial companies see growth potential for BTC in 2024. We have complied the most interesting Bitcoin forecasts for 2024 from experts in one review.
1. BTC can reach $100,000 before halving and head towards $700,000 within a year or two
CEO of the popular blockchain technology company Blockstream, cypherpunk (a member of a group interested in maintaining anonymity on the network using cryptography), Adam Back, believes that investors will see Bitcoin costs $100k before the halving. Then he expects the coin to reach $700k within a year or two. This forecast implies that Bitcoin will grow actively in 2024.
According to Adam Back, BTC will also receive support from newcomers who have previously invested in gold. Seeing the effectiveness of BTC, market participants will begin to swap precious metals for cryptocurrency.
By the way, the co-founder of the popular crypto projects Ethereum and Cardano, Charles Hoskinson, thinks that Back is Satoshi Nakamoto.
2. Growth towards $150,000
The big asset management company Bernstein, which controls assets worth $676 billion, believes that by January 2025, BTC will be worth $150k. This forecast also implies active growth next year.
Bernstein analysts believe that a spot Bitcoin ETF launch in the United States will increase the coin's attractiveness. It may increase BTC purchases and push its rate to a new high.
3. BTC will be valued at $125,000 by December 2024
Crypto-financial platform Matrixport, with $5 billion monthly trading volume, expects that BTC will reach $125k by December 2024. The company's Bitcoin forecast is based on the cyclical theory, which is built upon the cryptocurrency halving effect we discussed above.
A decreased influx can allow Bitcoin to grow almost threefold. The coin itself can meet the halving price of $62k.
4. $100,000 per Bitcoin at the end of 2024
Standard Chartered Bank, which occupies 255th place in the Forbes ranking of the largest companies, gave a less optimistic forecast. Its team suggests that the BTC maximum price for 2024 is $100K per coin.
According to analysts, Bitcoin can meet the next New Year holiday at this level. The main growth driver will be a spot Bitcoin ETF launch in the United States.
5. $40–45,000—not higher
Analysts at the largest US bank, JPMorgan, consider Bitcoin at $100K by the next year too optimistic. In their opinion, BTC will reach halving at $40K, and during 2024, it could grow to $45K.
The JPMorgan team explained the modest forecast based on the limited BTC potential, calculating growth opportunities by comparing the BTC rate with gold.
BTC is called digital gold; like a precious metal, the coin helps guard savings from inflation.
Let's put all-in Bitcoin?
All the observations suggest that BTC has a good chance of growing. Many prominent analysts share very positive Bitcoin price predictions for 2024. Probably, BTC investments today can bring profit in the near future, but, of course, it is impossible to give an accurate forecast. There is no need to blindly believe even the most authoritative experts; conduct your own research and draw your own conclusions.
By the way, you can find the most profitable, easiest, and fastest way to buy Bitcoin for fiat using a bank card on itez.com. Pay for crypto in dollars, euros, or another currency, and do not worry about anything: itez has a European regulator license, and coins will arrive in your wallet in a few minutes.
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This article is not an investment recommendation. The financial transactions mentioned in the article are not a guide to action. Itez is not responsible for possible risks. The user should independently conduct an analysis on the basis of which it will be possible to draw conclusions and make decisions about making any operations with cryptocurrency.
