It’s that time of the year again: 2023 has run its course, and we are curious as to how crypto will perform in the coming year. Will there be a crypto rally soon? What is the Bitcoin price prediction for 2024 in particular, seeing as it is the digital gold and the king of all crypto?
In this article, we explore where Bitcoin is headed in the coming times with crypto price prediction 2024.
Is Bitcoin’s performance in 2023 indicative of a crypto rally in 2024?
How did Bitcoin perform in 2023? Fresh out of the crypto winter of 2022, Bitcoin performed brilliantly in 2023, with prices rallying 160%. A similar performance was last seen in 2020, with an around 350% crypto rally witnessed in Bitcoin throughout the year.
As you can see in the chart, the fourth quarter of the year had major gains for Bitcoin, pushing it to about $43,000 at the end of 2023. What were the factors for this gain?
- The possibility of SEC-approved crypto spot ETFs (exchange-traded-funds) in the US has been the center of all crypto conversations in 2023. There are several Bitcoin and Ethereum spot ETF applications currently under review from the SEC (US Securities and Exchange Commission), including those from prominent firms like BlackRock, Fidelity, and Grayscale. The latest speculations say spot Bitcoin ETF approval in the US may be due as early as January 2024. While the potential of such instruments being approved by the SEC caused a crypto rally several times in 2023, the actual event can initiate a bull market in early 2024.
- Several jurisdictions around the world have initiated positive crypto regulations, Hong Kong and the UK most prominent among them. Further, even the G20 has achieved consensus for a Crypto Asset Reporting Framework (CARF) to be implemented by 2027. As the global crypto community has lobbied for a comprehensive regulatory framework for years, these developments have been most welcome, bringing a positive outlook for global crypto markets and reinforcing investor confidence in the asset class.
- While global interest rate hikes had a negative impact on crypto in 2022 and even at the beginning of 2023, the Fed in the US hit a pause in the hikes near the end of 2023, signaling there might be reduced interest rates in the coming times. This is yet another reason the crypto space has been bullish in the last quarter of 2024.
Now, what does the optimism of 2023 imply for crypto price prediction 2024, and Bitcoin price prediction in particular?
Bitcoin price prediction 2024
Before we get into the actual Bitcoin price prediction, here’s a quick look at multiple factors that imply a bullish year ahead for Bitcoin.
Positive outlook for 2024
- As mentioned above, many believe that the US SEC will approve a host of Bitcoin spot ETFs by January 10, 2024. With high-profile organizations like BlackRock, Fidelity, and Grayscale backing said ETF applications, this is an event that might set off the biggest crypto rally yet. While the current crypto ETF market is worth about $50 billion across 150 products, these upcoming ETFs can bring in another $72 billion in assets under management (AUM) in the next five years.
- Aside from the ETFs, institutional investors are growing more interested than ever in the potential of Bitcoin and crypto in general. As MicroStrategy’s Michael Saylor took to X to claim on December 27, the company has acquired $615 million’s worth of Bitcoin, which has paved the path for heightened excitement in the crypto community. 2024 is now all set to see yet more institutional backing for crypto.
- The next Bitcoin halving is due in April 2024, which is an event that takes place every four years or so and cuts down Bitcoin mining rewards in half. This means fewer new BTCs come into supply, essentially maintaining Bitcoin’s position as a deflationary asset.
Now, historically, every time there has been a Bitcoin halving, a crypto rally has followed. If you take a look at Bitcoin’s price graph since initiation below, every rally in 2012, 2016, and 2020 has been followed by an astonishing price hike within a year- give or take. The most prominent example would be Bitcoin’s $69,000 price mark seen in late 2021 after the 2020 Bitcoin halving.
This is yet another possibility that leads to an optimistic Bitcoin price prediction 2024.
What will be Bitcoin’s price in 2024?
As per a crypto price prediction 2024 from Standard Chartered Bank, Bitcoin might reach $100,000 by the end of 2024. The institution believes the approvals of multiple US spot Bitcoin ETFs to be the first catalyst for such a crypto rally, which will smoothen the way for further institutional interest in crypto.
As Bitcoin has proven itself as something of a safe haven for investors in tumultuous times, support is expected to continue pouring into the asset in 2024. In fact, Standard Chartered also highlights the next Bitcoin halving as yet another catalyst for a crypto rally in 2024: “We now expect more price upside to materialize before the halving than we previously did, specifically via the earlier-than-expected introduction of U.S. spot ETFs.”
Even foregoing such incredible optimism, Bitcoin price prediction 2024 suggests that we can expect Bitcoin to cross the $50,000 mark early in 2024. Will it manage to double its price by the end of the year after that? That would be a forecast you, the trader, make, based on your analysis of price trends and accounting for macroeconomic events.
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