Bitcoin has seen over 300% surge over the past twelve months signaling to the world that the digital asset is here to stay, and it will only get more popular as a mainstream investment vehicle.
The price of BTC skyrocketed in 2020, a year that will be remembered for rampant institutional adoption for digital assets. The king coin recently hit fresh highs, further cementing the case for it competing against gold as an “alternative” currency.
Furthermore, millennial investors seem to be drawn to the “digital gold” over traditional gold, a factor that is immensely driving demand for the leading cryptocurrency.
Let’s examine various BTC price predictions from major players in the crypto space to determine where the coin’s price trajectory is headed as we approach the fourth halving in 2024.
Bitcoin’s Scarcity is Driving Demand Post Halving
BTC has finally surpassed its previous 2017 peak just months post the third halving, buoyed by bullish sentiments tied to giant investment companies such as Microstrategy dipping their toes in the cryptocurrency market.
According to one analyst, the coin’s hard-coded scarcity is becoming more apparent to investors. He explained that diminishing supply post-halving was a vital factor in catalyzing the current bullish breakout.
In a tweet published late last year, Mike McGlone, Senior Commodity Strategist for Bloomberg, made a case for a firmer crypto market in 2021, amid rising global inflation and underperforming stocks.
BTC has a total supply of 21 million coins, making the finite value of this asset extremely lucrative to institutional clientele looking for alternative investments in this tricky financial time.
While looking into the previous halving effect, another crypto analyst noted that the reduction in BTC supply would attract more investors into the market.
Analyst Russian Bear shared the chart below that analyzes the price action from previous halvings to determine when the latest halving’s full effect would register on prices. This analysis of BTC price patterns can help investors predict where the price will be in the coming months and even years.
Comparison of BTC Price Movements Following Past Rewards Halvings | Source Tradingview
According to his speculative conclusions, the BTC price will reach its next peak on October 4th, of this year.
Near to Mid-term BTC Price Forecast
BTC has sparked wild speculations over its next move after surpassing its previous price record and continuing higher into unchartered territory.
For instance, Macro investor Raoul Pal speculated BTC prices could shoot up to “between $400K and $1.2M” by the end of 2021 if the bullish trend continues.
Bitcoin pioneer Max Keiser shared a similarly wild prediction, setting his target for 2021 at $220,000. The crypto expert added that he would be lifting his short-term target to $65K based on a multiple convergence of factors that look set to drive the asset higher.
Keiser believes that his optimistic predictions are well within reach, given the widening of bitcoin supply gaps and unprecedented quantitative easing by central banks worldwide.
JPMorgan experts gave a more modest price prediction in their latest note published on Jan 5, 2020. They project that the current speculative mania will propagate BTC prices to $50k – $100k.
The best-selling author of Rich Dad Poor Dad, Robert Kiyosaki, gave a similar moderate BTC price prediction of $50K in 2021.
Where Will Bitcoin Be Trading By 2024?
While it remains hard to give bitcoin an intrinsic fundamental value because of its finite supply, many investors aren’t shying away from predicting where the trade could be headed.
Canadian-American venture capitalist Chamath Palihapitiya, a well-known bitcoin bull, predicts that BTC could hit $100,000-200,000 in the future. He based his projection on the current macroeconomic and geopolitical trends, such as an underperforming world economy and rising inflation.
Other prominent investors and analysts in the crypto sphere have made similar ambitious price forecasts, claiming that BTC will likely see exponential growth as the next halving event approaches.
For instance, the Winklevoss twins, who are the co-founders of Gemini exchange, recently stood by their prediction that BTC will surpass gold’s market cap in the future.
The twins claim that BTC is the most significant money and technological revolution since the invention of internet, and holds unlimited promise in providing financial access to the world’s unbanked population.
According to Cameron and Tyler, bitcoin is more scarce than gold because it has a predetermined supply of 21 million coins. The twins, who view bitcoin as better than gold because it is more liquid and easy to transport, see the digital asset hitting prices of $500,000, thus surpassing the $9 trillion market cap of gold.
The latest superstar investor to give his price outlook on the world’s top cryptocurrency is Mark Cuban, a billionaire investor and owner of the NBA’s Dallas Mavericks. According to Cuban, the current volatile crypto trade resembles the internet stock bubble of the late 1900s, which burst, leading to devastating losses for investors.
However, the billionaire predicted that Bitcoin would survive the bubble and thrive, similar to companies like Amazon and eBay that survived the Dotcom Boom and Bust.
Bitcoin Market Fundamentals Point to Higher Prices
Macro trends for bitcoin prices reaching six-figure digits by the 4th halving in 2024 are skewed bullish.
For one, the 3rd block rewards halving event has already positively impacted the BTC price and will undoubtedly play a significant role in confirming the new bull market as we head into the future.
Another factor that will likely drive BTC to even loftier heights is the fear of missing out (FOMO) that has recently gripped the market amid the coin’s parabolic rally.
Institutional investors such as PayPal and Square have embraced bitcoin, legitimizing the digital asset that was previously known for its murky uses in criminal activity than its investment potential.
Moreover, the US Office of the Comptroller of the Currency (OCC) recently allowed banks to tap the blockchain and stablecoins for payments. This move will likely boost use cases for the digital asset class and its underlying blockchain tech.
Finally, a rising BTC hash rate, which is continuously hitting fresh highs, points to a healthy network that is here for the long run.
Rising BTC Hash Rate Points To Healthy Network | Source Coinwarz.com
According to numerous crypto market analysts and prominent investors, the BTC market is well poised to see robust growth in the years to come.
Market fundamentals, including institutional adoption of BTC and growing legitimacy of the crypto asset class, support the case for bitcoin hitting loftier heights in terms of market value and capitalization as we head into the 4th halving.