Executives within the crypto sphere have recently declared the onset of a new "bull run", which many expect to culminate in new all-time highs for bitcoin in 2024, with some talking of prices over $100,000. Anticipation of a bitcoin Exchange Traded Fund being greenlighted in 2021, the upcoming bitcoin halving, and the resolution of the FTX & Binance cases with the US Department of Justice are all contributing to a surge in crypto markets.
Executives within the cryptocurrency sector have said that a bull run - a period of sustained increase in value - is about to begin. Many of them think this upswing will culminate in bitcoin reaching an all-time high of over $100,000 by 2024. This year, the value of bitcoin has risen by more than 120%, leading to a positive outlook as the year progresses. Pascal Gauthier, CEO of Ledger, stated in an interview with CNBC last week: “It seems like [2023] was a time to prepare for the bull run that awaits us. People are very hopeful for [2024] and [2025].”
The digital currency's last all-time high near $69,000 was witnessed in November 2021. Since then, the crypto world has been rocked by a number of issues, such as coins and projects crumbling, bankruptcies, and criminal proceedings. To cite a vivid example, one of the world's biggest exchanges, FTX, went down alongside its founder Sam Bankman-Fried being sentenced to more than 100 years in prison following his conviction for seven counts of criminal fraud. In a similar vein, Binance's CEO Changpeng Zhao pleaded guilty to criminal charges and had to resign his position within the framework of settling a $4.3 billion dispute with the U.S. Department of Justice. Many in the sector take the two situations as a line in the sand for the difficulties that have impeded the crypto market. Citing the matter, David Marcus, CEO of Lightspark, voiced in a CNBC interview last week: “I think that when the speculative phase is over, which I think we're almost done with, though not completely yet, genuine creators can concentrate on the tech and the problems it can help address in the world, rather than having a gargantuan digital casino for people to buy and sell.” At present, Marcus, the former administrator of Facebook's failed Diem stablecoin project, is working on technology to enhance Bitcoin as a payments network.
Investors are now focusing on two factors that the industry considers to be positive developments. The first of these is the potential upcoming approval of a Bitcoin exchange-traded fund (ETF), which would bring in larger, more traditional investors who had previously stayed away from cryptocurrency. Gauthier commented that the ETF signals the mainstreaming of Bitcoin. The second development is the Bitcoin halving, which is scheduled for May of 2024. This halving will reduce the rewards miners receive for upholding the network, capping the total supply of Bitcoin at 21 million coins, and typically precedes a new rally. According to Ayyar, the expectation of a bull run after the halving, combined with the ETF news, could lead to an upward surge in price before the halving, leaving many investors on the sidelines.
Already, there have been some intrepid predictions for bitcoin's price in 2024. Standard Chartered were the first to make such a statement, reviving an April call that the cryptocurrency would reach $100,000 by the end of 2024. The bank believe this will be driven by the approval of various ETFs, signalling an increase of roughly 160% from the current price of $38,413 (according to CoinDesk data). Matrixport, a crypto financial services firm, in turn released a report forecasting a rate of $63,140 by April 2024 and $125,000 by the end of 2021. Matrixport explained that their inflation model indicated that the macro environment will remain a strong catalyst for crypto, and that a reduction in inflation was likely to result in the Federal Reserve lowering interest rates - which, together with the geopolitical ramifications, should fuel Bitcoin to new heights in 2024.
Commentators suggest that monetary policy easing has a positive effect on bitcoin, a high-risk asset viewed by some as a safe haven during times of international conflict. When asked if bitcoin would hit $100,000 in 2024, Gauthier simply replied "maybe" without offering a specific prediction. He remarked that "strong fundamentals" exist surrounding the cryptocurrency. Ayyarr asserted that the digital currency's price is consolidating beneath $38,000, which is a sign of bullishness. If that level is breached, Ayyar speculated that bitcoin's value could rise to anywhere between $45,000 and $48,000. Nevertheless, he cautioned that an ETF denied by regulators could wreak havoc on the asset's ascent, which has been largely based on the anticipation of the ETF's approval.
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