Are you thinking about investing in the popular cryptocurrency? A recent report predicts that Bitcoin will reach a new all-time high in 2024.
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Bitcoin (BTC) is expected to hit a new record high of $88,000 (€82,000) later this year before settling around $77,000 by the end of 2024, according to a new report.
The current price of the cryptocurrency is around $43,000.
The British fintech company Finder has conducted a study based on expert price forecasts from 40 crypto industry specialists and looks at the development of Bitcoin until 2030.
It found that Bitcoin is likely to reach an average peak price of $87,875 in 2024, with some experts surveyed predicting a rise to as high as $200,000.
On the other hand, the average lowest price Bitcoin could reach by the end of 2024 is $35,734, the report said, with some predicting it will fall as low as $20,000.
What could give Bitcoin a boost in 2024?
More than half of the experts surveyed by Finder expected a price increase following a so-called “BTC halving event” in April 2024.
A halving event is a period every few years in which the reward for mining Bitcoin transactions is halved. Currently, those who validate Bitcoin transactions receive 6.25 Bitcoins, which could drop to 3,125.
Halving events lead to lower supply as there are fewer Bitcoins available, which of course leads to higher prices.
Almost half of the 40 panelists surveyed by Finder (47%) believe Bitcoin will reach a new all-time high six months after the halving.
Kadan Stadelmann, CTO of blockchain platform Komodo, said in the report that Bitcoin is likely to face significant pressure, not only because of the expected halving, but also because “large companies and institutional investors” [are] show growing interest [in Bitcoin, which] should boost demand.”
Many experts are predicting more buyers in the market after the US Securities and Exchange Commission recently approved 11 Bitcoin exchange-traded funds (ETFs), making it easier for retail investors to trade Bitcoin-related mutual funds on US exchanges.
The price could be pushed further higher once the US Federal Reserve cuts the historically high interest rate, as analysts expect this to cause more liquidity to flow into Bitcoin.
However, John Hawkins, a lecturer at the University of Canberra, believes cryptocurrencies are still little more than a speculative bubble.
“If the new spot Bitcoin ETFs are popular, there could be a temporary price increase. But in the medium to longer term, I still view Bitcoin as a speculative bubble,” Hawkins said, adding that there are high expectations for similar ETFs to come onto the market in 2021, but the price later crashed.
What should investors prepare for between now and 2030?
BTC is expected to potentially rise to $122,688 in 2025 and $366,935 in 2030.
However, the truncated mean, a statistical measure of central tendency, puts the expected price by 2030 at about $220,708.
Overall, the majority (58%) of panelists say now is the time to buy BTC, 38% recommend holding and 5% recommend selling.
Cryptocurrencies are unregulated in the UK and there is no protection from the Financial Ombudsman or the Financial Services Compensation Scheme.
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