Can Bitcoin’s price soar to $100,000 by 2024? Expert analysis, with 3 factors to consider.
It was a turbulent start to August for cryptocurrencies, but Bitcoin still has room to surge to $100,000 by 2024.
That’s the prediction of digital currency expert Dominic Basulto. The estimate might seem too optimistic given recent events. In just 24 hours, the queen of cryptocurrencies lost 15% of its value on Black Monday, August 5. Some traders panicked, thinking that Bitcoin was going below $50,000. Others speculated that the long-awaited rally might be over before it even began.
“I still think Bitcoin will hit $100,000 by the end of 2024,” the expert suggested. The jump means that Bitcoin will have to nearly double its price in a short time. “And yes, I am aware that geopolitical events in the Middle East could really put a damper on any appetite for risk assets like Bitcoin. But there is still a credible path to $100,000,” he added. Here’s why.
3 Reasons to Expect Bitcoin at $100,000
The analyst’s first takeaway is the Bitcoin Halving, which occurred in April.
It takes time for the Bitcoin halving to have an impact. That’s because it changes the rate of new Bitcoin creation, and it takes time for the market to react to the changing growth in supply. Think about how monetary policy works: interest rate hikes or cuts don’t have an immediate effect on the broader economy.
“If you look at a trading chart of the previous Bitcoin halving, which occurred on May 11, 2020, you can see exactly what I mean,” the analyst cautioned. On that day, the price of Bitcoin was $8,618. The price hovered around the $10,000 level for a few months, teasing investors with signs of a potential breakout. But it wasn’t until the summer that it climbed to the $12,000 level. And then, by the end of the summer, the bottom fell out of the market and Bitcoin was back trading around the $10,000 level.
Then, as we moved into the fall and approached the 2020 presidential election, the Bitcoin price took off. Long story short, Bitcoin ended the year at $28,994, more than double the high it reached over the summer. That included a blistering 48% gain in December alone. And from there, Bitcoin has been on a roll in 2021.
2. Traders’ Predictions
Several clues can help determine how likely a $100,000 price for Bitcoin is by the end of 2024. The trendiest option is to use a cryptocurrency prediction market like Polymarket, where traders place real-world bets on whether various scenarios will come true.
In late July (before Bitcoin’s sudden crash), traders suggested that the digital currency had a 42% chance of hitting $100,000 by the end of 2024. Just a week later, that percentage had dropped to 20%.
3. Options
Another option is to use Bitcoin options themselves, the expert noted. There, real-world traders are buying Bitcoin call options based on where they think the price of Bitcoin will be at various times.
At the moment, some of the most popular call options are those with a strike price of $100,000 and an expiration at the end of December. In other words, options traders still think there is a chance that Bitcoin will reach a price of $100,000 in the coming months.
If you are thinking about investing in Bitcoin, make sure you take a long-term view and do not just react to every market turn during an election year: this is Basulto’s top advice.
|DISCLAIMER
The information and considerations contained in this article should not be used as the sole or primary basis for making investment decisions. The reader retains full freedom in his or her investment choices and full responsibility in making them, since only he or she knows his or her risk appetite and time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public to save.|
Original article published on Money.it Italy 2024-08-10 15:49:00. Original title: Bitcoin a $100.000 entro fine 2024, la previsione
