MKRUSD Maker

As the crypto market marches into 2024, various industry experts and financial analysts have recently cast their respective Bitcoin (BTC) predictions for the year. Among the voices offering insights, Mark Mobius of Mobius Capital Partners LLP stands out for his historically accurate predictions. Having correctly forecasted Bitcoin’s fall to $20,000, Mobius now envisions a climb to $60,000 by the year’s end. This optimism is further mirrored by Youwei Yang, chief economist at crypto mining firm Bit Mining, who projects a high of $75,000 for Bitcoin in 2024. Yang’s predictions hinge on a combination of the upcoming Bitcoin “halving” event, which is expected to constrain supply, and the potential inflow of institutional investments following a spot ETF approval in the US. Related Reading: Crypto Analyst Says History Shows What Might Be Next For Bitcoin, But Is It Good Or Bad? The Catalysts Behind The Predictions The notion of a spot Bitcoin ETF approval in the US is a central theme in these bullish forecasts. The expectation of such an event has stirred excitement within the crypto community, drawing parallels to similar financial instruments and their impact on associated markets. James Butterfill, head of research at CoinShares, believes that a spot ETF approval in the US would mark a “significant change” in the digital asset landscape, potentially integrating cryptocurrencies more closely with traditional financial markets. As for the prediction, Butterfill noted: Estimations suggest that a 20% investment increase from current assets under management (around US$3 billion) could potentially propel Bitcoin prices to US$80,000. Butterfill additionally pointed out that potential interest rate reductions by central banks might significantly contribute to an increase in Bitcoin’s value. 2024 Bitcoin Predictions above $100,000 Raising the prediction bar, Antoni Trenchev, co-founder of the cryptocurrency exchange Nexo and a well-known Bitcoin advocate, maintains his prediction that Bitcoin could soar to $100,000 in 2024. Despite initially projecting this target for 2022, Bitcoin’s price took a downturn instead of hitting the anticipated high. Reaffirming his stance, Trenchev attributes his renewed $100,000 forecast for 2024 to the upcoming Bitcoin halving and the possible green light for several spot Bitcoin ETFs in the US. Trenchev anticipates that these two factors will act as a dual catalyst, driving Bitcoin’s value to the $100,000 mark, with prospects of even higher peaks in 2025. Trenchev, however, cautions about the volatile journey towards this target, predicting fluctuations and significant dips along the way. In addition to Trenchev’s projections, Standard Chartered and University of Sussex finance professor Carol Alexander also envisions Bitcoin potentially hitting $100,000 in 2024. Alexander suggests this is contingent on the capacity of market maker algorithms from major financial institutions like Blackrock and Fidelity to moderate market volatility. Echoing these sentiments, Matrixport, a firm specializing in crypto financial services, projects that Bitcoin will hit $125,000 by the end of the year. The firm noted: Based on our inflation model, the macro environment is expected to remain a robust tailwind for crypto. Another decline in inflation is anticipated, prompting the Federal Reserve to likely initiate interest rate cuts. Combined with geopolitical crosscurrents, this healthy dose of monetary support should push Bitcoin to new highs in 2024. Venture capital firm CoinFund offers one of the most ambitious predictions, with managing partner Seth Ginns forecasting Bitcoin’s value to range between $250,000 and $500,000 in 2024. Ginns attributes this potential surge to factors like the declining correlation with the dollar and real yields, the anticipated impact of newly launched BTC spot ETFs in the US, and the excitement over possible ETH spot ETFs. Featured image from Unsplash, Chart from TradingView