Bitcoin, the world’s largest cryptocurrency, is predicted to reach new heights by late 2024, according to VanEck, a renowned investment management firm. The firm’s analysts anticipate a significant influx into Bitcoin exchange-traded funds (ETFs), which could propel Bitcoin to a new record high.
VanEck projects significant capital inflows into Bitcoin ETFs, indicating a robust Bitcoin market despite wider economic uncertainties. The firm anticipates that the spot ETFs will garner $1 billion within the initial days and reach $2.4 billion within a quarter.
The next Bitcoin halving event, expected to occur in 2024, is also a significant factor contributing to this prediction. Bitcoin halving, a process that reduces the reward miners receive for mining new blocks by half, occurs approximately every four years. This event is designed to control the supply of new Bitcoins, contributing to the cryptocurrency’s scarcity and value.
The upcoming halving event in 2024 will see the block reward fall from 6.25 to 3.125 Bitcoins. This reduction in supply, coupled with increasing demand, could lead to a surge in Bitcoin’s price. This prediction is based on Bitcoin’s historical performance, which shows that Bitcoin uptrends tend to move quickly, often resulting in significant price increases in less than a year.
The Spot Bitcoin ETF Will Continue to Play a Crucial Role
Moreover, the firm anticipates a substantial increase in institutional demand for Bitcoin. The likely approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC) is expected to open the gates to widespread institutional investment.
VanEck anticipates that Bitcoin’s price could exceed the $48k threshold following the halving event, mirroring the technical pattern seen in April 2022. The latter half of 2024 could witness even more significant changes for Bitcoin.
With the backdrop of worldwide political transitions and a rise in global voting participation, Bitcoin is expected to reach unprecedented levels. The firm speculates that by November 2024, Bitcoin could achieve a new pinnacle in value, potentially hitting $100k by the close of the year.
In conclusion, the combination of the upcoming Bitcoin halving event, increasing institutional demand, and the potential approval of a spot Bitcoin ETF could set the stage for Bitcoin to reach new record highs by late 2024. However, investors should be prepared for volatility and sharp rallies, as these are common characteristics of Bitcoin’s “acceleration phase”.