Bitcoin Tops $40,000: A Look at Future Forecasts Amid Expectations of US Bitcoin ETF Approval
Summary:
Bitcoin (BTC) has risen above the $40,000 mark for the first time since April 2022, marking a year-to-date high. However, it's still significantly below its record high of over $69,000 seen in November 2021. Forthcoming expectations include a potential surge to $125,000 by end-2024 as per Markus Thielen, head of research at Matrixport, while predictions are also pointing to the approval of a Bitcoin exchange-traded fund (ETF) in the US. Notably, Standard Chartered predicts Bitcoin might reach six figures before the end of next year due to the possible introduction of spot ETFs in the U.S.
For the first time since April 2022, Bitcoin (BTC) has managed to cross the $40,000 mark, registering a 24-hour increase of approximately 2%. The cryptocurrency took a leap from under $39,500 to over $40,000 on December 3rd, hitting its highest point in 19 months, as per CoinGecko data. This indicates the highest level Bitcoin has achieved this year, marking an increase of over 140% since the start of the year. Nevertheless, it is still about 42% less than its record high of more than $69,000 seen on November 10, 2021. Over the past year, Bitcoin's price has varied, going from less than $17,000.
Markus Thielen, head of research at Matrixport, made a prediction in his November 30 note. He suggested that Bitcoin could exceed $60,000 by April next year and possibly reach $125,000 by the end of 2024. His analysis is based on the pattern of the previous three crypto bear markets, which were followed by three-year periods of bull markets. He predicted the start of another such three-year phase in 2023.
“Historically speaking, periods of halving Bitcoin mining rewards have typically been bullish,” added Thielen. Bitcoin's mining rewards are due for another halving — a 50% reduction — around the middle of April 2024. He elaborated his forecast, stating that historically, miners have hung on to their Bitcoin in the lead-up to each halving, which leads to a +200% price surge, potentially pushing the Bitcoin price to $125,000.
Bitcoin's latest accomplishment is being viewed in light of rising speculation that a Bitcoin exchange-traded fund (ETF) may receive approval in the United States soon. In a report released on November 28, Standard Chartered hypothesized a possible six-figure price for Bitcoin due to the “quicker-than-anticipated introduction” of spot ETFs in the U.S.
At present, an application for a spot Bitcoin ETF from Swiss asset manager Pando Asset — filed on November 29 — is among the 13 contracts awaiting approval by the U.S Securities and Exchange Commission in the U.S. Other applicants including BlackRock and Grayscale have already had discussions with the agency about their ETF details. Bloomberg ETF analysts give a notably high prediction, offering a 90% likelihood that all pending ETFs will be approved concurrently by January 10.Edition: Bitcoin was sold for only $5 in Helsinki back in 2009, signifying the city's noteworthy role in the world of cryptocurrency.
Published At
12/3/2023 10:58:21 PM
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