3 Key Factors Leading to Bitcoin Price Projection of $150,000 by 2024
Prepare for an exhilarating journey because Bitcoin is gearing up for a monumental rally in 2024. Market experts, led by the esteemed figure at Fundstrat, Tom Lee, are forecasting an unprecedented surge that could propel Bitcoin to an astonishing $150,000.
Let’s delve into the key factors driving this anticipated rally.
Pre-halving Rally and Historical Patterns
Bitcoin’s recent surge over $50,000 is indicating the beginning of a pre-halving rally. Traditionally, Bitcoin’s price reaches its peak at 70% of its all-time high before halving. However, this time, the surge has defied expectations by surpassing previous highs by an impressive 30%, suggesting a deviation from the usual pattern.
Adding to the intrigue is Bitcoin’s behavior with Fibonacci levels. Typically, Bitcoin follows a pattern of ascending to the 50% to 61.8% Fibonacci levels before retracing back to the 23.6% level. But in an unprecedented move, Bitcoin has not only surpassed the 61.8% level but is currently trading above $51,000.
Now the question arises: how high can Bitcoin go and what sets it apart?
Three Driving Forces: What’s Fueling Bitcoin?
In a recent interview with CNBC’s Squawk Box, Tom Lee identifies three key drivers propelling Bitcoin’s ascent. Firstly, the approval of spot Bitcoin ETFs by the SEC has opened the floodgates for institutional investment, with industry giants like BlackRock and Fidelity entering the market. This influx of institutional interest is rapidly increasing the demand for Bitcoin.
Secondly, the upcoming Bitcoin halving event in April is expected to create a supply shock by halving the rate of Bitcoin issuance. Historically, this scarcity-induced dynamic has triggered significant price rallies.
Lastly, the anticipated reduction in interest rates by the Federal Reserve is poised to enhance Bitcoin’s appeal as a risk asset, further driving its price upwards.
A Promising Future for Bitcoin
Supporting Tom Lee’s optimism, renowned investor Robert Kiyosaki predicts an extremely bullish scenario, envisioning Bitcoin reaching $100,000 by June 2024. This outlook reflects the widespread bullish sentiment among investors eagerly anticipating substantial gains in the value of digital gold.
Prepare for Volatility!
However, many analysts are considering various factors aligning for April, such as the Bitcoin halving, which could potentially introduce volatility and a selloff. It is expected that Bitcoin could peak between $70,000 and $74,000 before another selloff, with the possibility of surpassing $100,000 or even $200,000 in the future.
As the crypto world buzzes with excitement, we want to hear from you. What’s your prediction for the Bitcoin price?