POSTED ON 01/12/2024 BY APEXTOMINING
Cryptocurrency prices are rising sharply in the new year, with Bitcoin currently trading above $45,000, the highest level in nearly two years. Can the cryptocurrency appreciate more, though, or will the upward trend it has been seeing over the past year come to an end?
In the past year, there has been a resurgence of bitcoin and the cryptocurrency market as a whole. While 2022 was full of contentious headlines (FTX collapse, anyone?) and low prices, the value of bitcoin increased by more than 155% in 2023. This success can be attributed, at least in part, to an improving economy as a whole. Research has shown that stocks and cryptocurrencies have similar pricing trends, and this year’s prospects for interest rate cuts, job growth, and slower inflation have all supported stock prices.
That was all in the past, though, and anything can happen in 2024. Where will the price of bitcoin likely end up this year? Here are the opinions of specialists.
Big Events: Bitcoin ETFs and Bitcoin Halving
This spring is expected to bring the largest bitcoin-related event of the year, and analysts believe it may boost prices. The infrastructure of the cryptocurrency is altered every four years through a halving of bitcoin.
“Mining” is the mathematical process that creates bitcoin. Miners work on computer programs to solve mathematical puzzles in exchange for newly created bitcoin. A halving event reduces the overall bitcoin reward in half, requiring twice as much work to obtain the same amount of coins as previously. Major price increases have often preceded bitcoin halving events; following the most recent one in May 2020, prices increased by more than 200% by year’s end.
The long-awaited approval of a bitcoin spot ETF has occurred, which is another significant development. Investors will be able to get a share in bitcoin through these exchange-traded funds that focus on cryptocurrencies without really owning the asset. The applications for bitcoin spot ETFs from 11 businesses were authorized by the U.S. Securities and Exchange Commission on Wednesday. Many people now think that these funds would significantly introduce bitcoin into the mainstream of investing.
Furthermore, a plethora of evidence indicates that the stock market has a significant impact on fluctuations in cryptocurrency prices. Therefore, improving non-cryptoeconomic variables may be positive indicators for bitcoin values.
Where will bitcoin prices go?
For the first time since December 2021, Bitcoin (BTC) momentarily exceeded $49,000 on Thursday as trading in spot bitcoin exchange-traded funds (ETFs) with U.S. listing began amidst high expectations.
According to CoinDesk Indices data, which compiles pricing from numerous exchanges, the largest cryptocurrency asset by market capitalization increased from below $46,000 earlier today to over $47,000, then surged, reaching a $49,042 during the early U.S. trading session. Subsequently, it relinquished all of its gains and broke below $46,000.
Experts are quite excited about all of these aspects, but it’s important to remember that many of them are eternal optimists, particularly when it comes to the technology’s wider adoption.
Considering this, the general consensus among those surveyed seems to be that bitcoin will either surpass or break its record price of about $69,000.