The development of Bitcoin price in 2024 is attracting a lot of attention. Particularly with regard to the possible approval of a spot Bitcoin ETF (Exchange Traded Fund).
Several analysts are expecting a monumental year for Bitcoin, predicting a possible rise to a new all-time high.
AllianceBernstein's Bitcoin price prediction
Optimism about Bitcoin's performance in 2024 is based on a combination of several factors. Notably, Bitcoin rose over 150% in 2023, with an impressive rally that took it to $45,913 in early 2024. This is the highest value since April 2022.
Despite this price increase, Bitcoin remains over 30% below its 2021 all-time high of around $68,990.
Bitcoin price development. Source: TradingView
Analysts at AllianceBernstein, a global asset management firm with $669 billion in assets under management, highlighted several key factors behind Bitcoin's expected rise. The first is the possible approval of a spot Bitcoin ETF, a development that is highly anticipated by the crypto community.
The US Securities and Exchange Commission (SEC) is expected to decide on applications from well-known companies such as ARK Investments by January 10th. This approval, which is likely to be adopted by other asset managers such as BlackRock and Fidelity for similar products, could usher in a new era of institutional investment in Bitcoin, driving its price towards $80,000.
Gautam Chhugani and Mahika Sapra expect total inflows of around $15 billion in 2024. By 2028, they expect 10% of Bitcoins to be held in ETFs. This marks a significant shift in the way this cryptocurrency is traded and stored.
“We expect 2024 to be a watershed year for crypto. Building Bitcoin ETF inflows could be gradual, but applicants will fight hard to take the lead in this huge asset accumulation game by optimizing advertising and Bitcoin branding, resulting in a snowball effect,” said AllianceBernstein analysts.
Read more: How to Prepare for a Bitcoin ETF: A Step-by-Step Approach
Another significant event on the horizon is the Bitcoin halving, expected in April 2024. Historically, such halvings, which reduce BTC mining rewards, have resulted in significant price increases in the following months. AllianceBernstein expects this pattern to repeat, which will further propel Bitcoin’s rise.
Bitcoin price development halved. Source: Glassnode
Likewise, Robert Kiyosaki, the author of “Rich Dad Poor Dad,” emphasized the importance of the upcoming Bitcoin halving. He urged investors to pay attention to this pivotal event.
“If you want to be rich, it's important to have rich friends, or at least friends who want to be rich. A Bitcoin halving is getting closer and closer. Please pay attention to the Bitcoin, Gold and Silver halvings in January, February and March. Please choose your friends carefully,” Kiyosaki emphasized.
Other cryptocurrencies also look promising
The broader crypto market is also promising. AllianceBernstein expects Ethereum ETFs to be approved by June 2024. Therefore, Ethereum could potentially be the only other cryptocurrency to have a direct investment exchange-traded fund.
James Seyffart, ETF analyst at Bloomberg, explained that this expectation builds on the SEC's decision last year to allow futures ETFs on Ethereum. This was an action that indirectly categorized Ethereum as a commodity. He emphasized that the SEC did not dispute Ethereum's classification when it went through the ETF registration process with the Commodity Futures Trading Commission (CFTC).
“The CFTC blatantly calls Ethereum a commodity. They don't call them securities. […] The SEC has approved Ethereum futures ETFs. “Again, Gary Gensler will not explicitly say whether Ethereum is a security or a commodity, but with his action in approving these Ethereum futures ETFs, they are implicitly accepting these Ethereum futures as commodity futures,” Seyffart said.
This bullish outlook on Bitcoin, Ethereum and the broader cryptocurrency market is shared by various industry experts and thought leaders.
For example, Lindsey Li, investor at Bessemer Venture Partners, highlighted the role of decentralized training of Large Language Models (LLMs) and validating ownership of AI-generated content in advancing the crypto market. On the other hand, Denelle Dixon, CEO of the Stellar Development Foundation, predicted a rise in tokenization and blockchain-based transactions, which would strengthen global financial inclusivity.
Read more: 7 must-have cryptocurrencies for your portfolio before the next bull run
Paul Brody, global head of blockchain at EY, remains optimistic about the growth of the crypto ecosystem due to the implementation of the Markets in Crypto-Assets Regulation (MiCA) in the European Union. Meanwhile, Seth Ginns, managing partner at CoinFund, believes in a surge in altcoins that could eclipse Bitcoin.
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