2023 saw a spectacular comeback for Bitcoin, with the virtual currency rising by a whopping 152% and drawing the attention of analysts and industry insiders. In spite of the turbulent events of 2022, which included prominent bankruptcies and the failure of large-scale projects, the cryptocurrency market is presently optimistic about the future.
Formerly a significant participant in the worldwide cryptocurrency exchange market, FTX filed for bankruptcy in 2022, and Sam Bankman-Fried, the company’s creator, was charged with a crime in 2023. In exchange for a $4.3 billion settlement with the Department of Justice, Changpeng Zhao, the CEO of Binance, also acknowledged guilt to the charges and resigned. The industry is eager to proceed now that these cases have been resolved.
Two major factors are responsible for the resurgence of interest in the cryptocurrency markets: the “halving” of Bitcoin and the possible approval of a Bitcoin exchange-traded fund (ETF) in the United States. Every four years, the halving lowers miner rewards and has historically been followed by a spike in Bitcoin values. It is also predicted that the adoption of a Bitcoin ETF will draw in a wider group of investors, particularly institutional investors.
Audacious forecasts on the price of Bitcoin are making the rounds as the market gets ready for what many believe to be a fresh bull run. Mark Mobius, who correctly projected a decline in 2022, is now projecting a price of $60,000 by the end of 2024. Bit Mining’s senior economist, Youwei Yang, predicts a peak of $75,000 by 2024, citing the planned halving in May 2024 and the possible adoption of a Bitcoin ETF as reasons for the increase.
According to James Butterfill of CoinShares, if there is a 20% growth in assets under management following the U.S. approval of Bitcoin ETFs, the price might reach $80,000. Co-founder of Nexo Antoni Trenchev forecasts a price of $100,000 in 2024, citing the halving and authorization of ETFs as triggers.
In line with this sentiment, Standard Chartered reiterates its $100,000 estimate for the price of Bitcoin while highlighting the significance of ETF approvals. Professor Carol Alexander of the University of Sussex projects a trading range of $40,000 to $55,000 in the early months of 2024, with the possibility of a spike to $70,000 following the resolution of legal actions against Coinbase and Binance.
Notably, some audacious projections go much farther; by the end of 2024, Matrixport projects $125,000. Seth Ginns of CoinFund believes that Bitcoin may hit $1 million in the upcoming cycle, but he offers a more cautious projection of $250,000 to $500,000.
Industry insiders stress the need for care despite the euphoria because of market volatility and outside influences like new regulations. The legalization of exchange-traded funds (ETFs) and the halving of the value of Bitcoin are two significant developments that will impact the direction of the cryptocurrency in the years to come.