Bitcoin kicked off the new year on a high, crossing the $45,000 mark for the first time since April 2022.
For the first time in 21 months, Bitcoin’s price surpassed the $45,000 mark, riding on the optimism surrounding two pivotal catalysts anticipated in 2024 – the approval of a spot Bitcoin exchange-traded fund (ETF) and the next BTC halving. With these events still yet to occur, how high can Bitcoin rise this year?
Next Bitcoin Halving to Occur in 2024
Just as it did a year ago, Bitcoin has kicked off 2024 positively. The flagship cryptocurrency crossed the $45,000 mark on Tuesday, surpassing that threshold for the first time since April 2022. However, this may be only the beginning.
2024 is the year when Bitcoin will undergo its next halving. This predetermined event occurs approximately every four years, reducing the rewards miners receive for validating transactions by half.
So far, BTC has had three halvings, and after each occurrence, the cryptocurrency has experienced substantial surges in its price. This is because halving reduces Bitcoin’s supply, typically leading to increased scarcity and, in turn, greater demand. Investors often anticipate and react to this scarcity, contributing to positive sentiment and potential upward pressure on Bitcoin prices during and after the halving event.
According to market estimates, the next Bitcoin halving is anticipated to happen in April 2024, when the number of blocks reaches 840,000. It will see the block reward drop from 6.25 to 3.125 Bitcoins when it happens.
Meanwhile, BTC will likely benefit from another significant catalyst in 2024 – the imminent approval of a first-ever spot Bitcoin ETF in the US. Last week, asset managers, including BlackRock (NYSE:BLK), VanEck, and Fidelity, updated their spot BTC ETF filings with the SEC. According to Reuters, issuers that fulfilled their 2023-end filing revision deadlines may be able to launch by Jan. 10 – the date by which the securities regulator must either approve or reject the filings.
Experts’ Bitcoin Price Predictions for 2024
With a spot Bitcoin ETF approval looking increasingly likely and just four months left until the next halving event, many believe 2024 could be another breakout year for the biggest crypto asset.
Some of the most bullish predictions, including those by Nexo and Standard Chartered, see Bitcoin surging to as high as $100,000 this year, implying a potential upside of more than 120%. Crypto financial services firm Matrixport issued an even more optimistic forecast, predicting BTC’s leap toward $125,000 this year.
Meanwhile, fund manager Mark Mobius had a more cautious projection of $60,000 for BTC, while crypto miner Bit Mining’s chief economist Youwei Yang sees the cryptocurrency reaching $75,000 this year. CoinShares (ST:CS) head of research, James Butterfill, believes Bitcoin can hit $80,000 after the spot ETF approval.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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