As the gloomy market atmosphere fades and traders return, the price of bitcoin, the most traded cryptocurrency, has risen about 160% this year, reaching a 20-month high of $44,300 on December 9.
Now that the toughest regulatory sanctions have passed, traders are placing bets that large international fund managers and investment banks will embrace crypto.
The cryptocurrency market, famous for its booms and busts, is recovering after two years of negativity and losses. Earlier this year, bitcoin's value had fallen three-quarters from its peak of just over $69,000 in November 2021 to just $16,000.
bitcoin shows mettle
After losing more than 15% of its weekly gains to holders, the world's largest cryptocurrency by market capitalization, the price of bitcoin was trading sideways on Friday, near $43,500.
Today, investors are betting on growing companies and riskier assets in the hope that central banks will start lowering interest rates next year, which is why bitcoin and other cryptocurrencies are rising.
Expectations around the introduction of spot bitcoin ETFs and institutional adoption of cryptocurrencies are two factors driving the price of btc along with expectations of a reduction in interest rates.
This is also in line with predictions made by Standard Chartered, the UK's largest bank, which claims that the crypto may reach $120,000 by the end of the year.
btc market cap currently at $867 billion. Chart: TradingView.com
“This will be the first time there could be true recognition of bitcoin… I think this means that, this time, the rally will be more sustained,” said James Butterfill, head of research at investment group CoinShares.
Web3 investor and cryptocurrency expert CredibleCrypto predicts that in the third week of December, the price of btc will likely continue to rise and bitcoin-analyst-calls-early-bull-market-in-the-beginning-of-2024-btc-price-could-tag-50-000-202312080600″ target=”_blank” rel=”noopener nofollow”>reach the $50,000 mark.
crypto Analysts Aim for $50,000 Price Target
The analyst stated that whether or not bitcoin price breaks through the lows of $42,000, the asset is likely to hit $50,000 early this month, pointing to the addition of $30 million in spot offerings.
CryptoQuant analysts predict that in the first months of 2024, bitcoin's target price may fall between $50,000 and $53,000.
“bitcoin may target between $50,000 and $53,000 depending on the valuation perspective of network activity,” they said.
btc price action. Source: CryptoQuant
Experts analyzed the price of the alpha coin over short time horizons and predicted a correction due to a shortage of buyers in the spot market. They argued that a major change in circumstances is required before the price of btc rises to $50,000 or more.
Image: Freepik
Some perceive the beginning of a new “supercycle.” Last month, Bernstein, the American investment bank, made a forecast stating that the value of btc could increase more than three times, reaching $150,000 by 2025.
The analysts came to the conclusion that supports their findings after closely examining elements including market capitalization, user activity on the bitcoin network, and the number of bitcoin-related transactions.
These crucial indicators provide insightful information about the overall well-being, activity, and vigor of the crypto ecosystem, which helped create a complete picture of the cryptocurrency's current position within the broader financial system.
Featured image from the Brookings Institution
