Bitcoin (BTC-USD) price predictions are swirling lately as everyone’s favorite cryptocurrency flirts with a $45,000 per coin psychological barrier. After a gangbuster year for stocks and rate cuts seemingly around the corner, will 2024 be a good year for BTC?
Well, it depends on who you ask. By many accounts, if the U.S. manages to dodge a recession and incur stronger economic growth a la lower interest rates, Bitcoin could continue rallying this year.
Bitcoin briefly broke $45,000 per coin this week, enjoying the last of 2023’s surprisingly bountiful “everything rally” that saw strong gains in everything from stocks to crypto. Bitcoin itself soared more than 150% last year, making it one of the big winners across any trading medium.
Unfortunately, the party had to stop eventually. The coin has since eased back down by 5% today to its current roughly $43,000 level as investors grapple with a surprise cold streak hitting the markets.
Not alone, stocks have also been dealing with a brutal reversal this week after the S&P 500 and Nasdaq Composite shed about 1% and 1.6% respectively on Tuesday, the first day of trade in the new year. Now, stocks and crypto are again in the red Wednesday, cutting any hopes of a prolonged “Santa Claus Rally.”
Worth noting, however, the “halving” is set for this year — that is, an event written into Bitcoin’s code in that cuts “the rewards so-called miners get for mining bitcoin” in half. This occurs every four years and is meant to help the cap on the supply of Bitcoin. In previous years, the event has also pushed up the price of BTC.
So, where do the experts think Bitcoin is heading this year?
Bitcoin Price Predictions
Analysts are somewhat divided over BTC’s path forward this year, although most believe the coin is destined to rise in 2024.
Mark Mobius, founder of Mobius Capital Partners, told CNBC that he believes Bitcoin may climb to $60,000 per coin by the end of the year. Mobius didn’t have much empirical evidence citing his forecast, however, instead tenuously citing the possibility for a Bitcoin exchange-traded fund (ETF).
Antoni Trenchev is even more bullish on Bitcoin. The co-founder of crypto exchange platform Nexo believes BTC could hit $100,000 in 2024.
“My expectation for 2024 is that the twin-turbo boost from the Bitcoin halving & spot ETF approval should propel Bitcoin to $100,000, with the prospect of further highs in 2025,” Trenchev noted. “The road to $100,000 will be lined with unexpected potholes and double-digit declines as Bitcoin.”
Finally, CoinFund believes that Bitcoin is destined to reach up to $500,000 per coin in 2024. Managing Partner Seth Ginns believes the fall of yields presents the possibility of BTC to reach unprecedented new highs, combined with the potential of a BTC ETF.
“Bitcoin has a strong inverse correlation with the dollar and real yields, and both are now going down,” Ginns told CNBC. “We also expect the follow through inflows post-launch of the BTC spot ETF, as well as growing excitement around the likely approval of ETH (ether) spot ETFs later in 2024, will be quite meaningful.”
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
