In This Article
Investors hoped that 2023 would be a better year for the cryptocurrency market and that prices will stabilize after the challenging run of 2022. However, the expectations haven’t come to materialize, as the failures and issues brought by the collapse of several essential exchanges still loomed in the background. The increased push for regulations has also been a disservice to the market, as it caused further uncertainty that caused drops in value or stagnation.
Even the Bitcoin price suffered, which is noteworthy considering that BTC is the most reliable crypto in the world. All the altcoins and tokens move in the same direction as Bitcoin, and when it isn’t doing well, neither is the rest of the market. While the values were moving along relatively well, they fell considerably around the middle of August. September, historically a bad month for cryptocurrencies, provided no respite, and it was only during October that things started improving.
Now, with the new year just around the corner, it’s time to have a look at the predictions for 2024 and what you can expect from cryptocurrencies in the near future.
$100,000
Cryptocurrencies are well-known for their volatility, with the prices changing quite significantly even in the span of a few hours. With 2024 still almost four months in, many investors know that there’s still plenty of time for the situation to change. A new rally can still form, bringing forward further volatility. Most investors believe that the new year will bring forth renewed energy into the crypto market, leading to a growth in the overall values.
For many, the long-stagnating levels were nothing but the calm before the storm, and most are convinced that they signaled the development of a bullish tendency. If Bitcoin is to break above the $80,000 resistance level, it could reach levels as high as $100,000, albeit by the fourth quarter of the year. That means the current price requires a push of approximately 40% to reach this level. While that’s not entirely out of the ordinary, it would still be a significant move, and some aren’t convinced that BTC has what it takes to gain the momentum.
Halving
Bitcoin is having is one of the most important events in its ecosystem and one that inevitably comes with price variations. Generally, the halving and even the months preceding it are associated with inflated prices. The effects can sometimes persist long after the halving has ended, as well. So, it makes perfect sense that the investors are excited at the prospect.
As a result, some investors believe that Bitcoin is set to surpass its all-time high levels and approach $75,000 before April 2024, when the halving is set to occur. However, the new peak is set to arrive later during the year, and while the initial figures placed it somewhere around $160K, it is still quite likely that it will exceed those levels and climb somewhere around $250,000. That is, in fact, the target price for many investors.
These figures were revealed as part of an analysis examining past trends and where they took the price points. However, analysts also believe there will be roughly four pullbacks before BTC conquers the new peak. The last two will occur after the halving.
Price models
But it’s not just wishful thinking from investors that’s saying the prices will see considerable movements soon. The Bitcoin price movements are turning bullish as well. Forecasting tools show that the area around $130K in the environment is ready for taking. However, the analysts themselves say that it will take roughly two years for the price to become a reality.
In this scenario, the values will initially go lower before climbing to the six-figure level. So far, all numbers indicate that the prices align at this level, and the concept is directly linked to the halving event. The following peak in this area will arrive four years after the all-time highs of November 2021, which the marketplace lost and then never recovered.
One million
Predictions and estimations are the lifeblood of the crypto ecosystem. While some of them tend to be relatively diminutive and err on the side of caution, others can quickly become very optimistic, sometimes excessively so. Currently, some investors believe that Bitcoin will soon reach the whopping level of one million. The CEO of ARK Invest, Cathie Wood, has shown support for a seven-figure level for Bitcoin as well, a view shared by BitMEX.
The reason why BTC is expected to reach these figures is due to the macro reality that has set the scene and which guarantees that digital gold will soon climb higher than ever before. Historically, Bitcoin has become more prevalent during times of uncertainty in the markets when fiat currency isn’t doing great. The same thing applies now, and as more and more consumers are losing faith in the ability of traditional markets to help them see revenue, they’re more likely to turn to an alternative solution.
Cryptocurrencies are the most common answer, and many investors have claimed that they would undoubtedly choose to invest in Bitcoin instead of stocks, bonds or other traditional alternatives as inflation continues to remain a problem. The steep numbers are leading many to look for a hedge that can protect their portfolios and holdings and ensure that they continue to see returns as well.
The bottom line
Cryptocurrencies have been going through a rough patch for almost two years, but investors remain optimistic that change is just around the corner. How soon this change will arrive, or how big it will be, are questions nobody can answer with complete accuracy. Although many analysts and investors offer their predictions, it’s worth remembering that things change constantly in this environment, and it’s pretty challenging to keep up with all of them.
However, it remains imperative for investors to stay mindful of price changes and keep an eye out for any trends that could signal the beginning of a price shift. As always, you must remember to stay attentive and don’t make any rash decisions. They can do more harm than good and cause you to lose capital.
