Benzinga - In a recent prediction by AllianceBernstein, the value of Bitcoin (CRYPTO: BTC) is expected to reach a new peak of $80,000 by the end of 2024.
What Happened: AllianceBernstein analysts Gautam Chhugani and Mahika Sapra have forecasted a significant rise in the price of Bitcoin. Their forecast is based on anticipated approval for a spot ETF directly investing in Bitcoin, the imminent halving event in April and an increase in corporate demand, according to a report by MarketWatch.
Bitcoin, which soared by 150% in 2023, started 2024 on a bright note, touching $45,913 on Tuesday, a level not seen since April 2022 but still 30% below its all-time high of about $68,990 in 2021.
"Bitcoin ETF flows build up could be gradual, but the applicants will be fighting hard to get a lead into this massive asset accumulation game, tuning up advertising and Bitcoin branding leading to a snowball effect," the analysts noted.
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Why It Matters: Analysts anticipate that the U.S. Securities and Exchange Commission will approve a spot Bitcoin ETF application by ARK Investments and 21Shares by Jan. 10. Other asset managers, such as BlackRock Inc (NYSE:BLK), are also expected to receive approvals for similar products around the same timeframe.
If these spot ETFs are approved, a temporary Bitcoin selloff could occur as traders lock in their profits. However, the ETFs are expected to attract increased institutional inflows, pushing Bitcoin prices up.
AllianceBernstein predicts that Bitcoin ETFs could see about $5 billion in inflows in the first half of 2024, followed by an estimated $10 billion in the second half. By 2028, they project that about 10% of Bitcoin could be under ETFs.
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