Bitcoin prices could reach record highs in 2024: Experts

The new year is off to a strong start for crypto: Bitcoin prices are hovering around $45,000, their highest in nearly two years. But can the digital currency continue to rise, or will the streak of gains it has sustained over the past year disappear?

The past 12 months have seen a comeback for both bitcoin and the cryptocurrency industry in general. While 2022 was fraught with controversial headlines (FTX crash, anyone?) and price declines, bitcoin values ​​rose by more than 155% in 2023. At least part of this success can be attributed to an improved overall economy; job gains, slowing inflation and the prospect of interest rate cuts this year helped boost stocks, which have been shown to follow similar price patterns to cryptocurrencies.

However, that is already in the past – anything can happen in 2024. Where are bitcoin prices likely to go this year? Here’s what experts say.

Bitcoin ETFs and halving event are causing huge expectations

The biggest bitcoin-related event of the year will happen this spring, and experts think it could be a boon for prices. Every four years, a change to the cryptocurrency’s infrastructure comes through a bitcoin halving.

Bitcoin is created through a mathematical process called “mining”. Miners use computers to solve math problems for a reward of custom bitcoin. When a halving event occurs, the total bitcoin reward is cut in half – meaning that it then takes twice as much effort as before to earn the same number of coins. Historically, bitcoin halving events have preceded large gains; when the last one happened in May 2020, prices rose by more than 200% by the end of that year.

Another big event just happened: the long-awaited approval of a bitcoin spot ETF. These crypto-centric exchange-traded funds will allow investors to buy a stake in bitcoin without directly owning the asset. The US Securities and Exchange Commission approved 11 companies’ bitcoin spot ETF applications on Wednesday; now many believe that these funds will bring bitcoin to the investment mainstream in a big way.

“ETF approvals and the upcoming halving could make 2024 a record year for cryptocurrencies,” said Ben Weiss, co-founder of crypto ATM provider CoinFlip. “As such, I wouldn’t be surprised if bitcoin breaks six figures.”

Weiss adds that the ETF approvals are likely to draw large investment institutions into crypto, “creating a positive feedback loop between price and demand” to the benefit of investors.

Dan Weiskopf, co-portfolio manager of the Amplify Transformational Data Sharing ETF, places similar stocks in these two events as important price determinants over the next year.

“We see bitcoin reaching new highs in 2024 due to more institutional access through ETFs and a broader story as a store of value,” says Weiskopf, adding that the halving and further regulation of the cryptocurrency industry are likely to have positive results. for investors will deliver.

Moreover, there is a lot of evidence to suggest that price movements of cryptocurrencies are heavily influenced by the stock market. So improving economic factors outside of crypto could be good signs for bitcoin prices.

“Federal Reserve policy and the broader government stance on monetary issues will play a significant role in shaping the crypto market landscape,” said Martin Leinweber, digital assets product specialist at MarketVector Indexes.

Indeed, crypto has benefited throughout 2023 despite the Fed’s rate hikes. The central bank’s upcoming cuts, which will make the cost of borrowing money cheaper, could make the headwinds even stronger for speculative assets like bitcoin because they usually increase investors’ tolerance for risk.

Where are bitcoin prices going?

All these factors create a lot of excitement among experts, but it is crucial to keep in mind that many crypto experts are eternal optimists, especially when it comes to the wider adoption of the technology.

With that in mind, the popular opinion among those interviewed seems to be that bitcoin will break its record price of nearly $69,000 – or even go beyond it.

“I think there is a high probability that a new all-time high will be reached this year,” said Bob Ras, co-creator of the cryptocurrency company Sologenic.

Even if the ETF approval doesn’t kick off a bullish run, Ras says “there’s a lot of room for bitcoin to run here.” Similarly, Weiskopf says that “the previous high set of $68,000 last November 2021 will be eclipsed, and then we will go to higher round numbers.”

This in itself is a bullish forecast. If bitcoin were to rise to its old all-time high by this December, it would mean a return of nearly 63% on the year — six times greater than the average S&P 500 annualized return of about 10%.

There are also other, even bolder predictions being made. For example, Leinweber has a median forecast that puts the cryptocurrency’s median price at $150,000.

This story was updated Wednesday afternoon to include news of the SEC’s bitcoin spot ETF approval.

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