Numerous price predictions have emerged as the price of bitcoin continues to demonstrate significant growth throughout the year, driven by factors such as the upcoming halving event and the possible approval of a bitcoin exchange-traded fund (ETF). Spot bitcoin by the US Securities and Exchange Commission (SEC). ).
Notably, ETC Group has released a comprehensive report that sheds light on the potential for new all-time highs in 2024 and an impressive milestone of $100,000 by the end of the year.
bitcoin Price Recovery Sets the Stage for a Promising 2024
According to the recent ETC Group report crypto-Market-Outlook-2024/ETC_Group_2024_Outlook.pdf” target=”_blank” rel=”nofollow”>report2023 served as a recovery year for bitcoin and crypto assets, with fundamental catalysts setting the stage for the year ahead.
BlackRock Spot bitcoin ETF Filing, Report Says in June 2023 laid the foundation for further 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 early stages in terms of adoption in most developed countries.
Global surveys indicate an adoption rate of approximately 18%, suggesting that approximately one in five people worldwide own some crypto asset.
One of the most anticipated events that are expected to drive bitcoin price appreciation is the btc Halving scheduled for late 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.
In particular, ETC Group's base case prediction forecasts that the price of bitcoin will reach new all-time highs in 2024 and surpass $100,000 by the end of the year.
On-chain metrics point to bullish outlook for btc in 2024
Several on-chain metrics indicate that bitcoin is in tighter supply this cycle than the last. According to the report, key indicators such as currency supply percentage at a 5-year low and all-time high supply percentage in the last year or more suggest a potential bull market with further distribution of accumulated coins to new investors.
Additionally, macro factors, including the possible approval of a US spot bitcoin ETF, a likely US recession, a monetary policy reversal, and geopolitical risks, contribute to a favorable outlook for the price. of bitcoin in 2024.
A major point of discussion among investors revolves around the potential price impact if a bitcoin spot ETF gains approved in the US. The report highlights that variations in global bitcoin ETP flows have explained approximately 40% of the bitcoin 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, which almost doubles the global AuM of bitcoin ETPs, could cause a price impact of around 98%.
Overall, ETC Group's in-depth analysis and predictions suggest an auspicious year for bitcoin price in 2024. With new all-time highs predicted and the possibility of surpassing $100,000 by the end of the year, bitcoin's growth trajectory is not shows signs of slowing down.
Featured image from Shutterstock, chart from TradingView.com
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