Bitcoin could reach $160,000 in 2024: analysts predict | CoinDesk JAPAN

A bull market is widely expected to begin in 2024, with a flurry of catalysts and historic moves that could send Bitcoin (BTC) as high as $160,000, according to analysts.

Bitcoin demand from multiple spot exchange-traded funds (ETFs) in the US, broader market growth on the back of halved mining rewards, and lower interest rates are expected to push Bitcoin prices to at least $50,000 in the near term. That’s possible, on-chain analytics firm CryptoQuant said in a Dec. 20 report shared with CoinDesk.

“We argue that the Bitcoin and crypto asset (virtual currency) market could see a positive year in 2024, mainly due to the following influences: 1. Market valuation cycle, 2. Network activity , 3. Bitcoin halving, 4. Macroeconomic perspective, 5. Bitcoin spot ETF approval, and 6. Expansion of stablecoin liquidity,” CryptoQuant analysts said.

“On-chain valuations and network metrics suggest Bitcoin remains within the bull market, potentially targeting $54,000 in the medium term and $160,000 as the top of this cycle,” they said. Ta.

Bitcoin has historically rallied after halving events (in which the supply of new coins in the open market automatically decreases), and traders are pricing in the next scheduled halving event in April 2024. There is a high possibility that there are.

Meanwhile, more than seven traditional financial giants, including BlackRock and VanEck, are in talks with the U.S. Securities and Exchange Commission (SEC) about Bitcoin spot ETFs, and the constant back-and-forth continues This seems to indicate that things are moving forward.

A prominent Bitcoin holder says this is the biggest development on Wall Street “in 30 years.”

“It wouldn’t be unreasonable to suggest that this is the biggest development on Wall Street in 30 years,” Michael Saylor said in a CNBC interview on Monday, adding that the last comparable said its new product is an S&P 500 ETF, giving investors one-click exposure to that widely followed index. MicroStrategy, a business software company run by Mr. Saylor, is the largest company holding Bitcoin, with assets of more than $8 billion (approximately 1.16 trillion yen, equivalent to 145 yen per dollar). are doing.

Traders also expect the US Federal Reserve to cut interest rates in 2024 as inflation continues to decline. Historically, lower interest rates have tended to lead to larger bets on riskier assets such as tech stocks and crypto assets.

However, CrytpoQuant warns in a report that prices may fall in the short term as investors have recently taken on large unrealized gains.

“The risk exists given that short-term Bitcoin holders have experienced high unrealized gains, which historically precede price corrections,” the analyst said.

Bitcoin is up more than 180% year-to-date, which could create a bearish scenario ahead of the new year.

｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: Shutterstock
｜Original text: Bitcoin Could Reach $160K in 2024 on the Back of Halving, Spot ETF Hype: Analysts