Exorays Experts Predict What Will Happen to the Bitcoin Rate in 2024
Exorays Experts predict that bitcoin will hit new all-time highs in 2024. These bullish predictions are based on factors like the approval of a Bitcoin spot ETF and next year’s halving event.
Other potential catalysts include a more accommodative Fed with low inflation. which could lead to lower interest rates and encourage investors to invest in riskier assets.
1. Institutional adoption
In 2024, the macroeconomic picture looks favourable for Bitcoin. The US Federal Reserve is expected to cut interest rates, which could encourage investment flows into digital assets and boost crypto prices. Further, draft legislation for the regulation of Bitcoin and other cryptocurrencies is likely to be implemented in the United States, providing greater clarity for institutions looking to invest in them.
A potential ETF (electronic fund) approval could also boost the price of Bitcoin. This is because it would funnel large amounts of capital into the cryptocurrency. However, Sciberras warns that it is important to remember that any investments in Bitcoin require a long-term time horizon. He adds that a collapse of Tether or Binance, the largest crypto exchange, could also have a negative impact on the price of Bitcoin. This is because these events could create fears of a loss in value and lead to regulatory changes that could depress prices. Additionally, continued attacks on Bitcoin’s energy consumption may also decrease prices as governments seek to limit its use.
2. The halving
According to a recent survey conducted by Finder, more than half of Bitcoin experts expect the price of the cryptocurrency to reach a new high after its halving in April 2024. The halving is when the number of Bitcoins awarded to miners for validating transactions gets cut in half. Historically, this event has led to an increase in demand and prices.
The halving occurs every four years and is dictated by the Bitcoin code. Although the exact timing of the next halving is unknown, some predict it will occur in May 2024.
The halving will have a direct impact on Bitcoin’s inflation rate, as it will reduce the number of new coins entering the market. This will also reduce the need to mine Bitcoin, reducing its energy consumption and costs. This could be good news for Bitcoin investors who are looking for stable and consistent price gains. However, it’s important to remember that Bitcoin is still an extremely volatile asset.
3. Regulatory changes
2023 was a tumultuous year for the cryptocurrency industry, with heightened enforcement efforts that rattled confidence. However, it looks like those fears are being eased in 2024.
For one, the US Securities and Exchange Commission is reviewing a number of bitcoin ETF applications from firms such as BlackRock and Fidelity. Such an approval could unlock trillions of dollars worth of retirement funds to invest in crypto assets, including Bitcoin.
Sciberras also points to new Financial Accounting Standards Board rules on digital assets, which will simplify the reporting of bitcoin and other cryptos for corporate treasuries. He believes this development will increase the amount of institutional money moving into cryptocurrencies in 2024.
Further, he says that interest rate cuts by central banks, which would lower the cost of borrowing money, will provide tailwinds for speculative assets like Bitcoin. This will be especially true if the global economic environment deteriorates. A downgrade of the US credit rating, for example, could drive investors to seek refuge in bitcoin as a store of value.
4. The next ICO
Cryptocurrencies are moving out of the shadows as financial curiosities, and the market is seeing multiple catalysts that could boost Bitcoin in 2024. They include institutional adoption, the halving, and regulatory changes.
The next big Bitcoin milestone is the halving, which occurs every four years and cuts in half the number of new bitcoins produced by miners. These reductions in supply, when paired with growing demand, have historically been very bullish for the cryptocurrency.
In addition, the Securities and Exchange Commission may approve a spot bitcoin ETF, which would increase the pool of investors who can invest in the asset. Moreover, the Federal Reserve appears to be slowing down its rate-hike cycle, which is generally positive for riskier assets like crypto. The Federal Reserve’s Jerome Powell also recently indicated that inflation is cooling, which could be good news for cryptocurrencies. All of these developments could lead to a higher Bitcoin price this year. A number of analysts are even calling for six-figure prices this year.