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Numerous price predictions have emerged as the Bitcoin price continues to demonstrate significant growth throughout the year, fueled by factors such as the upcoming halving event and potential approval of a spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC).
Notably, the ETC Group has released a comprehensive report shedding light on the potential for new all-time highs in 2024 and an impressive milestone of $100,000 by year-end.
Bitcoin Price Recovery Sets The Stage For A Promising 2024
According to the ETC Group’s recent report, 2023 served as a recovery year for Bitcoin and crypto assets, with pivotal catalysts setting the stage for the following year.
Per the report, BlackRock’s spot Bitcoin ETF filing in June 2023 laid the groundwork for increased adoption of this emerging asset class in 2024 and beyond.
Despite the progress made, the report highlights that Bitcoin and other cryptocurrencies are still in their infancy in terms of adoption in most developed countries.
Global surveys indicate an adoption rate of approximately 18%, suggesting that roughly one in five individuals worldwide holds some crypto asset.
One of the highly anticipated events expected to drive Bitcoin price appreciation is the BTC Halving scheduled for the end of April 2024. While some argue that the halving is already priced in due to its public knowledge, historical data demonstrates significant price increases following previous halvings.
Notably, the ETC Group’s base case prediction forecasts that Bitcoin’s price will reach new all-time highs in 2024 and surpass $100,000 by the year’s end.
On-Chain Metrics Signal Bullish Outlook For BTC In 2024
Several on-chain metrics indicate that Bitcoin’s supply is scarcer this cycle than the previous one. According to the report, key indicators such as the percentage of exchange supply at a 5-year low and the all-time high percentage of supply in the last 1+ years suggest a potential bull market with increased distribution of accumulated coins to new investors.
Additionally, macro factors, including the potential approval of a spot Bitcoin ETF in the US, a likely US recession, a reversal of monetary policy, and geopolitical risks, contribute to a favorable outlook for the Bitcoin price in 2024.
A major point of discussion among investors revolves around the potential price impact if a spot Bitcoin ETF gets approved in the US. The report highlights that variations in global Bitcoin ETP flows have explained approximately 40% of Bitcoin’s price variation over the past six months.
Assuming that 20% of investors would consider such an investment and allocate 3% of their assets under management (AuM) to Bitcoin, an estimated $33.5 billion of new capital could enter the market.
This influx of funds, almost doubling the global Bitcoin ETP AuM, could lead to a price impact of around 98%.
Overall, the ETC Group’s in-depth analysis and predictions suggest an auspicious year for Bitcoin price 2024. With anticipated new all-time highs and the possibility of surpassing $100,000 by year-end, Bitcoin’s growth trajectory shows no signs of slowing down.
Featured image from Shutterstock, chart from TradingView.com