Home / News / Crypto / Bitcoin / Wall Street Forecasts Bitcoin Topping $100,000 in 2024: Is BTC Set to Outshine Traditional Stocks?
8 min read

Wall Street Forecasts Bitcoin Topping $100,000 in 2024: Is BTC Set to Outshine Traditional Stocks?

Last Updated December 4, 2023 4:23 PM
Giuseppe Ciccomascolo
Last Updated December 4, 2023 4:23 PM

Key Takeaways

  • Bitcoin reached $40,000 and is still rising. 
  • Standard Chartered and other Wall Street experts predict a surge to $100,000 in 2024. 
  • ETFs approval, halving, and market domination may boost BTC price.
  • Will Bitcoin be a better investment than stocks?

Bitcoin, the world’s largest cryptocurrency, has been on a rollercoaster ride in recent years. After reaching an all-time high of nearly $20,000 in 2017, it plunged to around $3,000 in 2018. Then it came back to around $60,000 and now is at $40,000. Now, many analysts believe that it could reach $100,000 or more in 2024.

This bullish forecast is being driven by a number of factors, including the growing adoption of Bitcoin by institutional investors, the approval of spot exchange-traded funds (ETFs), and the halving scheduled for April 2024. If BTC does reach $100,000, it would be a major turning point for the cryptocurrency, and it could even outshine traditional stocks as an investment asset.

$100,000 On The Horizon

The king of digital assets underwent a notable surge in 2023, recording an increase of 130%. This resurgence is in stark contrast to the previous year’s poor performance. A projection from Standard Chartered not only confirms its previous predictions from April but aligns perfectly with Bitcoin‘s current growth trajectory.

The surge in the value of Bitcoin can be attributed to several factors. Among these is the introduction of the first spot Bitcoin exchange-traded fund (ETF) in the United States.

“This development has significantly amplified investor interest, significantly contributing to the increase in the value of Bitcoin,” the bank said.

Furthermore, Standard Chartered  highlights Bitcoin’s dominant position in the cryptocurrency market as a key driver for its expected growth. The digital asset’s resilience and ability to maintain its prominent position amid market fluctuations positions it favorably for sustained expansion.

“A crucial event looming on the horizon is the imminent halving of Bitcoin. This process, characterized by a reduction in the number of Bitcoins allocated for mining, should exert a positive influence on the value of the cryptocurrency.”

The convergence of the halving event with the overall positive sentiment and solid performance of Bitcoin creates an environment conducive to substantial growth.

The bank’s projection is based on the continued growth and sustained dominance of Bitcoin in the market. In the evolving digital asset landscape, Bitcoin remains a pillar, potentially capable of reaching new heights in both value and influence over the next year.

Pit Stop At $50,000

Rania Gule, market analyst at XS.com , said: “I believe developments in the Bitcoin ETF will influence the current upward trend, pushing it towards $50,000. This is especially true with signs of slowing inflation, and investors gaining confidence that the Federal Reserve has concluded its series of interest rate hikes.”

Attention has shifted to expectations of potential interest rate cuts next year, supporting the current rise in global markets.

“From my perspective, the cryptocurrency market will closely watch developments in applications submitted by major companies such as BlackRock Inc. to introduce the first Bitcoin ETF in the United States. I expect some of these funds to likely receive approval from the SEC by January next year. And the outcomes of these applications will have a significant impact on the digital asset market led by Bitcoin.”

“I also believe that Bitcoin prices continue to receive support from expectations of the SEC approving interest rate reductions on exchange-traded funds and federal interest rates in 2024. The next levels to watch are $42,330, with the nearest support at $39,500.”

Gule does not anticipate any significant price retracements, as breaking through the $40,000 zones and maintaining stability above them, coupled with rising expectations of the approval of Bitcoin ETFs, the approaching halving event, and growing expectations of the Federal Reserve halting interest rate hikes, may lead to continued upward movement in the medium and long term.

“There is a possibility of Bitcoin reaching $60,000 before the second half of April 2024.”

He also believes that comments from Powell last week played a role in the likelihood that the tightening cycle has peaked. Cryptocurrencies were performing well in sync with the rise in gold, supported by falling yields.

“It is noteworthy that Bitcoin surged even before the headlines of the approval of instant exchange-traded funds, indicating the current positivity in the market.”

ETFs, Halving, And Fed Cuts To Boost Bitcoin

As Bitcoin continues its meteoric rise, the importance of the launch of the Spot Bitcoin ETF in the United States cannot be overstated. This milestone played a critical role in spurring investor interest in Bitcoin.

“The ETF provides a regulated and accessible investment tool, which attracts institutional and retail investors. The capital injection from these diverse investor groups contributes to Bitcoin’s growing market capitalization,”  Standard Chartered added.

Standard Chartered’s foresight is based on its recognition of Bitcoin’s resilience and its ability to weather the storms of market volatility. The cryptocurrency’s ability to bounce back from a difficult period in 2022 demonstrates its underlying strength and adaptability.

With the increasing integration of Bitcoin into traditional financial ecosystems, its role as a store of value and hedge against inflation is gaining importance. The impending Bitcoin halving, a phenomenon built into the cryptocurrency’s code, adds a level of anticipation to market dynamics.

“The reduction in supply of new Bitcoin, combined with sustained demand, creates an imbalance between supply and demand, contributing to upward pressure on prices. This inherent scarcity aligns with the decentralized nature of Bitcoin and its appeal as a deflationary digital asset.”

Not only Bitcoin ETFs but also halving may boost the price of the cryptocurrency next year. Also, expectations of cuts in Fed interest rates may give a hand to Bitcoin to reach $100,000 in 2024.

“Like most forecasters, my colleagues and I anticipate that growth in spending and output will slow over the next year, as the effects of the pandemic and the reopening fade and as restrictive monetary policy weighs on aggregate demand,” Fed’s chair, Jerome Powell, said, according to a transcript .

His remarks have fueled expectations that the Federal Reserve may have concluded its current cycle of interest rate hikes. The series of rate increases initiated since March 2022 appears to have had a dampening effect on economic activity. It also prompted speculation that the Fed may now pause further rate hikes.

Will Bitcoin Outperform Stocks?

If Bitcoin is going to reach $100,000, will it be an investment that is more profitable than stocks? Yes, according to many experts.

Crypto analyst Raoul Pal has shared his insights on the current market sentiments, forecasting a stellar performance for Bitcoin in 2024. Pal, basing his predictions on trends and indicators, anticipates substantial growth for Bitcoin in the coming year.

Pal’s optimism is grounded in his use of the GMI Financial Conditions Index, a tool he utilized to foresee the positive trend that BTC is poised to experience. His conviction in Bitcoin’s potential is shared by several other analysts who have also put forth similar predictions.

One such analyst, Vetle Lunde from K33 Research, echoes Pal’s bullish sentiment on Bitcoin’s prices for the upcoming year. Lunde draws attention to the notable interest and price premiums observed on the Chicago Mercantile Exchange (CME) as indicators of a positive trajectory for Bitcoin.

The surge in Bitcoin price predictions is becoming a consensus among crypto analysts. Especially as Bitcoin approaches the highly anticipated halving event scheduled for April 19, 2024. The impending halving event will be a significant catalyst for Bitcoin’s price movements.

However, amidst the prevailing optimism, some crypto experts caution that Bitcoin might undergo a temporary setback. This can be of 20% to 30% before the halving event. This cautious stance is based on the analysis of Bitcoin’s historical patterns during the last four halving events.

As the crypto community eagerly awaits the unfolding of events leading up to the halving, the diversity of predictions from various analysts adds an intriguing layer to the ongoing discourse surrounding the future of Bitcoin in 2024.

Was this Article helpful? Yes No