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Bitcoin To $55,000 In 2024? Here’s Why It’s Not A Chimera

Last Updated December 29, 2023 10:26 AM
Giuseppe Ciccomascolo
Last Updated December 29, 2023 10:26 AM

Key Takeaways

  • Bitcoin has the potential to reach a price of $55,000 in 2024 due to several factors.
  • The increasing legitimacy of Bitcoin and its popularity among mainstream investors are driving its price upwards.
  • While the possibility of a major correction exists, the long-term outlook for Bitcoin is positive.

Bitcoin is on the verge of a major breakout, and there are several reasons to believe that it could reach a price of $55,000 in 2024.

One of the main reasons for this optimism is the growing institutional adoption of Bitcoin. Major companies such as Tesla, Square, and MicroStrategy have all invested heavily in BTC, and this has helped to legitimize the cryptocurrency and attract more mainstream investors.

In addition, events like the imminent approval of spot Bitcoin exchange-traded funds (ETFs) and the halving of the king of cryptocurrencies will put a spotlight on Bitcoin.

The Four Factors That Drove The Rally In 2023

«Digital assets have archived a year full of volatility which ended, however, with prices reaching the highest levels of approximately the last 18 months», said the experts at IG .

They explained that the strong rally of cryptocurrencies in recent months – Bitcoin in particular – is due to a series of factors: the upcoming approval by the U.S. Securities and Exchange Commission (SEC) of the first ETFs on spot Bitcoin, which may lead both retail and institutional investors to increase their investments; the disinflation process and the next change in the monetary strategies of central banks; the closure of Sam Bankman Fried’s FTX and CZ’s Binance affairs; the Fomo (Fear of Missing Out) sentiment on the crypto sector.

Can Bitcoin Be The New Gold In Five Years?

The signs that the SEC will approve a spot ETF on Bitcoin in January are “very encouraging”, according to Cathie Wood, CEO of Ark Invest.

Cathie Wood is collaborating with 21Shares on two ETF futures products focused on Ethereum and Bitcoin. In an interview with CNBC, Wood predicted not only that the cryptocurrency king will continue its 2023 trend in 2024, but that within five years investors will treat it like an investment in physical gold.

There may also come a time when it will be used as fiat money in other emerging economies, she added. El Salvador has already expressed its support for cryptocurrencies.

Halving Will Be Another Main Supportive Factor

Investors highly await next year, said XTB  analysts, also due to the Bitcoin halving. In practice, every four years the amount of Bitcoins paid to miners as a reward is halved. Which makes the cryptocurrency’s value more likely to rise, provided demand remains stable.

“Both the SEC’s final deadlines (January 10 and March 15) and the halving on April 23 lead us to the conclusion that the first half of 2024 will be crucial for the dynamics of the cryptocurrency market,” XTB experts said.

$55,000 Is A Reasonable Target

IG believes that the institutionalization of Bitcoin as a financial instrument will lead to new gains for the most famous cryptocurrency in the first half of 2024 towards $55,000 and then fall during the second half of next year.

“From a graphic point of view, the peremptory victory above the annual peaks of 44,718 will be the condition to push the prices towards the medium-term goal of 55,000 dollars,” they said.

“Different indications will only arrive with the bearish violation of the support at $40,000,” they added.

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