The year 2024 is expected to be full of ups and downs for Bitcoin, or any other crypto, for that matter, considering the way the year started. BTC was once at a tally of $47,000. It is now down to ~$40,000 at the time of articulating this piece. Eleven months later, Bitcoin is expected to inch closer to its ATH. There is still a lot that can happen in the time window.
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An analysis by experts puts everything in perspective.
The bulls have their say
To begin with the positive view, bulls believe Bitcoin will continue to rise in the coming days. They have based their predictions on a rock-solid argument, stating historical context about Bitcoin Halving, institutional adoption, and macroeconomic tides.
Bitcoin Halving
The process is slated to happen in the middle of 2024. The historical context associated with Bitcoin Halving is that slashing mining rewards brings down the token supply and triggers an increase in the price. In 2012, when Bitcoin Halving happened for the first time, rewards were brought down to 25 BTC from 50 BTC, transitioning the price from $13 to $1,152 in the next year.
Similarly, the third Halving process in 2020 reduced the reward to 6.25 BTC and took the prices to the level of $67,549 from $9,734.
Institutional Adoption
This entails the engagement of big players, including, but not limited to, hedge funds and financial institutions. The willingness to inject funds into the market has been widely accessed, giving it the legitimacy and recognition it craves.
The International Monetary Fund (IMF) has stated that there is a rise in interest in CBDC in Latin America and the Caribbean. The Central Bank Digital Currencies are also being considered in other parts of the world.
Macroeconomic Woes
Finally, it is a cross-border transaction that demands a seamless and less expensive way for people to send and receive funds. Cryptocurrencies have served their purpose without the intervention of a third party, namely the Central Bank. People have hailed the implementation largely because of its 24/7 availability and near-instant convenience.
Inflation and instability in geopolitical scenarios will likely drive investors to Bitcoin, for one, in the times to come.
But Bears Cast a Shadow
It is only obvious for bears to cast their shadow, bringing a different perspective that one can simply not ignore. They believe that not everything is colorful in the crypto sphere. Rightly so, considering volatility continues to make its appearance at regular intervals. Their justifications are based on a cemented ground of principles, too.
Regulatory hurdles
After the BTC ETF was approved, rumors started circulating that major participants might now legally manipulate the market. If that takes place, the government will respond severely by stepping up oversight and enforcing existing regulations more aggressively. The prevailing conditions motivate the enthusiasm of investors. That will change if the proper authorities do what is needed to identify the factors that threaten investor safety and regulations.
Technological advancement
New blockchains emerging from the dust will put Bitcoin on the edge. It has been leading the charts since its inception despite several downfalls. The recent fall of 5.99% in the last 7 days has kept the token undeterred, keeping the momentum going at all costs.
That still does not mean that Bitcoin has a monopoly over the market. Its dominance is only one innovative launch away from being challenged and losing height.
Unforeseen events
This refers to incidents such as market crashes and security breaches. The cryptocurrency market crashed at the beginning of this year when a story surfaced indicating that ETF applications would not be approved. However, the recovery was rapid, and some investors made small profits from their holdings.
Nevertheless, a similar event on a larger scale can affect the rise of Bitcoin. There was a time when BTC was exchanging hands at a value of more than $65,000. It is now struggling at around $40,000. Bitcoin has also tasted the fall to ~$16,000 in the last 1-2 years.
Charting the course
It is impossible to precisely predict where Bitcoin will tilt in 2024 or the years to come. Only a rough chart can be drawn for the token.
Bullish case
Bitcoin is teased to surpass the milestone of $69,000. PlanB, on X, has predicted an estimated jump to $60,000 by saying that BTC is only gaining strength right now.
Neutral case
A moderate prediction estimates that Bitcoin will trade at $50,000, or in the surrounding territory, during its run in 2024. This perspective has gained better recognition within the Bitcoin community.
Bearish case
Touching the $30,000 mark is an option that has not been dismissed. Indeed, if events do not proceed as planned, BTC might fall below that level.
Takeaway
An ideal way is to consider risk management and the core elements of Bitcoin before investing in the product. It remains sensitive to volatility, filled with an inclination to either side. Bears and bulls have their respective words for the community. It only has to be personal understanding that drives capital inflow and portfolio diversification.
