Various prognostications have surfaced amidst the sustained substantial growth of Bitcoin’s price this year, driven by factors like the imminent halving event and the potential approval of a spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). Particularly noteworthy is the ETC Group’s extensive report, unveiling insights into the prospect of achieving new all-time highs in 2024 and reaching a remarkable milestone of $100,000 by the conclusion of the year.
The resurgence in Bitcoin prices lays the foundation for a hopeful outlook in 2024.
As outlined in the recent report from the ETC Group, 2023 marked a recovery period for Bitcoin and crypto assets, with key catalysts setting the stage for the subsequent year.
The report underscores the significance of BlackRock’s filing for a spot Bitcoin ETF in June 2023, establishing a foundation for increased adoption of this emerging asset class in 2024 and beyond.
Despite notable progress, the report emphasizes that Bitcoin and other cryptocurrencies are still in the early stages of adoption in most developed countries.
Global surveys reveal an adoption rate of approximately 18%, indicating that around one in five individuals worldwide holds some form of crypto asset.
An eagerly anticipated event poised to drive Bitcoin price appreciation is the BTC Halving scheduled for the end of April 2024. While some argue that the halving is already factored into market expectations, historical data shows substantial price increases following previous halving events.
Significantly, the ETC Group’s baseline prediction anticipates that Bitcoin’s price will achieve new all-time highs in 2024 and surpass $100,000 by the conclusion of the year.
In 2024, On-Chain Metrics Indicate a Positive Trend for BTC.
Several on-chain metrics point to a scarcity of Bitcoin’s supply in the current cycle compared to the previous one. The report highlights key indicators such as the percentage of exchange supply reaching a 5-year low and the all-time high percentage of supply in the last 1+ years, indicating a potential bull market with increased distribution of accumulated coins to new investors.
Macro factors, including the potential approval of a spot Bitcoin ETF in the US, a likely US recession, a reversal of monetary policy, and geopolitical risks, contribute to a positive outlook for Bitcoin’s price in 2024.
A focal point of investor discussions revolves around the potential price impact of a approved spot Bitcoin ETF in the US. The report notes that global Bitcoin ETP flows have explained approximately 40% of Bitcoin’s price variation over the past six months.
Assuming that 20% of investors consider such an investment and allocate 3% of their assets under management (AuM) to Bitcoin, an estimated $33.5 billion of new capital could enter the market.
This significant influx of funds, nearly doubling the global Bitcoin ETP AuM, could result in a price impact of around 98%.
In summary, the ETC Group’s thorough analysis and predictions paint a promising picture for Bitcoin’s price in 2024. With anticipated new all-time highs and the potential to surpass $100,000 by year-end, Bitcoin’s growth trajectory appears to be robust and unyielding.