Bitcoin's Impressive Rise in 2024: ETF Launch and Inherent Value Fueling Growth
Summary:
Throughout 2024, Bitcoin's value has experienced significant growth, driven by the initiation of spot BTC ETFs and its role as a secure asset. Experts predict that this trend will continue, with potential for Bitcoin to reach up to $200,000 by year-end. The positive influence of ETFs on the crypto market has broadened the appeal of cryptocurrency investments. Increased inflows into Bitcoin ETFs, the status of Bitcoin as a store of value, and prevailing macroeconomic conditions are expected to contribute to a continued rise in Bitcoin's value.
As we advance through 2024, Bitcoin (BTC) has experienced a remarkable rise in value, largely due to the initiation of several BTC spot ETFs, as well as its inherent role as a secure asset. Grayscale's research director, Zach Pandl, anticipates that the interest in BTC will endure, especially amidst the ongoing debates about the U.S. government's high expenditure and interest rate policies. "Continuing budget deficits and inflation will drive demand for secure assets like Bitcoin," Pandl conveyed to Cointelegraph.
BTC’s future worth is still uncertain, attributed to the various factors at play. Nevertheless, Jupiter Zheng, a HashKey Capital’s liquid fund partner, foresees enormous growth potential in Bitcoin, implying a possible leap to $200,000 before the year concludes. “A low estimate is $100,000, a moderate one, $140,000, and a high pitch hitting $200,000, by the close of 2024," Zheng shared with Cointelegraph.
The launch of ETFs in the crypto market has expanded crypto-investing reach, making it more enticing for a larger demographic. In the long run, Bitcoin's price swings will resemble that of conventional assets such as stocks and gold. This semblance could lead to stabler growth and wider acceptance in mainstream investment portfolios, Zheng added.
Renowned venture capitalist, Tim Draper, forecasts Bitcoin tripling in worth in 2024 due to ETF inflows and the impact of the Bitcoin halving. Draper maintains an optimistic outlook on Bitcoin's path, reflecting on his previous prognostications while suggesting a potential rise to $250,000 by year-end due to the favorable market indicators he recognizes in the market. He shared his views with Cointelegraph during Paris Blockchain Week.
The inception of spot Bitcoin ETFs in the U.S has notably resparked interest and capital investment in Bitcoin. These investment instruments have opened an alternative route for potential Bitcoin investors who may be intimidated by self-custody of BTC. Further, they act as a safeguard against depreciating fiat currencies, Draper elucidated.
Despite Bitcoin’s recent instability triggered by an adapting market in response to the new demand and supply dynamics—especially with the worldwide introduction of spot ETFs which could escalate Bitcoin's demand in the upcoming months, potentially driving up its price—it's still not too late to invest in Bitcoin, even under the bleakest circumstances. The ETFs, however, could induce greater volatility as investors find it easier to switch in and out of funds compared to self-custody.
Zheng proposed, “Our current model price stands at $90,000. A more optimistic scenario pegs it at $125,000, while a pessimistic one at $50,000. The deciding factors include net inflows into the BTC spot ETF, an interest rate cut from the Fed later this year, and Bitcoin's 2024 halving event set to disrupt the demand and supply balance.”
Determining BTC's exact price by the end of 2024 is challenging, but experts broadly agree that it is set to trend upwards throughout the year. These projections are based on expected increased flows into Bitcoin ETFs, its status as a wealth-preserving asset, and the prevailing macroeconomic conditions.
Readers should note that this article is devoid of investment advice or recommendations. All trading or investment activities carry associated risks; readers are advised to conduct independent research before making decisions.
Published At
4/25/2024 9:20:00 PM
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