The year 2023 brought some relief for Bitcoin after its previous year’s drop in value. But the year 2024 looks more interesting – many experts think Bitcoin could start a major rise in price that takes it to new record levels. Crypto Rover, a well-known crypto market analyst, thinks Bitcoin might hit its highest price ever in 2024.
Crypto Rover is watching BTC price closely around the $48,500 level. He believes if BTC breaks above this level, especially reaching the 0.618 Fibonacci level, it could start a bullish upward trend in the crypto market. Traders commonly use Fibonacci levels to spot potential support and resistance levels in financial markets, including cryptocurrencies like BTC.
Similarly, Sean Farrell, head of digital asset strategy at Fundstrat, has gotten attention for predicting BTC could reach $116,000 by the end of 2024. He points to major new investments flowing into Bitcoin and the upcoming halving event, which will cut the new coin supply in half, as key drivers of his positive prediction.
Likewise, analysts at CryptoQuant expect a surge to $160,000, fueled by a potential US spot Bitcoin ETF approval and broader crypto market recovery. They think these catalysts could substantially increase demand, propelling the price upwards.
One main reason for the optimistic outlook is the upcoming Bitcoin halving event in April 2024. This event will reduce the mining reward per block from 6.25 BTC to 3.125 BTC, effectively decreasing the supply of new BTC. This creates scarcity, which with steady or increasing demand drives up the price.
The halving has boosted BTC value before. After previous halvings in 2012 and 2016, BTC price rose substantially in the following year each time. Based on these patterns, the 2024 halving could spark a new bull run taking BTC to unprecedented prices.
Institutional Adoption Driving Demand For Bitcoin
Another factor that could push BTC to new highs in 2024 is growing institutional interest and investment. The recent launch of US and Hong Kong spot bitcoin ETFs in late 2023 and early 2024 opened a new way for institutional investors to access the crypto market.
Unlike previous bitcoin futures ETFs, spot bitcoin ETFs let investors directly buy and sell the actual cryptocurrency without intermediaries. The Hong Kong ETF also offers both “in-kind” and “cash” redemption options. This added flexibility could attract more money into crypto.
Rising institutional adoption signals bitcoin’s increasing legitimacy as an alternative asset class. This could further boost demand and price as more investors seek to diversify with BTC to hedge against risks like inflation and currency devaluation.