For those who are interested in cryptocurrencies, the beginning of 2024 delivered good news as both Ethereum and Bitcoin saw encouraging trends. Nonetheless, the year before was difficult due to the notable 65% decline in Bitcoin's market value. Unexpected obstacles that confronted cryptocurrency enthusiasts included the Terra Luna collapse, the decrease of FTX, macroeconomic difficulties, and Binance's legal troubles.
The bitcoin market proved resilient and showed indications of revival all year long despite these obstacles. For example, in July 2023, the average rise for Bitcoin was 0.39, bringing its value to almost $31,000. Bitcoin's value increased by year's conclusion, paving the way for a bright future in 2024. As of January 3, 2024, the price of Bitcoin was $45,203, with a market capitalization of $886.64 billion and $31.76 billion in trading volume.
Bitcoin reached a record high of $63,725 on March 4, 2024, its highest price since December 2021. Its market value of $1.25 trillion made a significant contribution to the astonishing $2.38 trillion total market capitalization of cryptocurrencies.
Will the Price of Bitcoin Rise Again?
Bitcoin reached a high of around $63,757 in March 2024, but it has since fallen below $30,000. This decline coincides with worries about inflation in developed nations such as the U.S. and the U.K., which prompted the U.S. Federal Reserve to raise interest rates.
When the U.S. Securities and Exchange Commission (SEC) brought legal action against Binance, a well-known cryptocurrency exchange, and its CEO, Changpeng Zhao, BTC was under similar pressure. Through several organizations, the SEC accused Binance of circumventing U.S. securities rules and exaggerating trade volumes.
Experts are nonetheless positive about Bitcoin's future despite these obstacles. Bitcoin may experience a rise if it remains stable at about $30,000. From $26,000 in May 2022 to over $45,000 in January 2023 and now to $63,757 in March 2024, it has already increased significantly also by using AI trading bots like Quantum AI.
Prospects for Bitcoin are still unclear, so investors should proceed cautiously. However, variables like the U.S. financial crisis and India's regulatory policies could still have an impact on its volatility.
In addition, the four-year Bitcoin halving event that reduces miner earnings by half takes place in 2024. Due to a previous reduction in supply, this occurrence raises the price of Bitcoin and may indicate that the cryptocurrency is gaining traction.
History of Bitcoin Halving
Bitcoin Halving Event
Price on Halving Day
Price 150 days later
2012
$12.35
$127
2016
$650.53
$758.81
2020
$8,821.42
$10,943
The aforementioned table demonstrates how previous Bitcoin halving occasions have continuously driven the price of Bitcoin over the long run. These occurrences lower the quantity of Bitcoin, which adds to its deflationary character and often drives up prices. Since governments and central banks are unable to issue Bitcoin, its total quantity is restricted, in contrast to other currencies.
In addition, big investors referred to as "Bitcoin Whales" have started to reload their Bitcoin holdings. These whales, who have wallets containing anything from 1,000 to 10,000 BTC, have been adding to their holdings, according to data from on-chain aggregator Sentiment. This accumulation indicates that investors are becoming more optimistic about Bitcoin's price rebound with the help of QuantumAI Trading.
Can We Expect $100,000 in Bitcoin by 2024?
April of this year will see the fourth halving of Bitcoin. A crucial component of Bitcoin's monetary policy is halving, which roughly every four years cuts the supply growth rate in half. The supply growth rate of Bitcoin initially exceeded 10%, but it has now dropped to around 1.75%. During the halving in April, this rate will decrease even further to only 0.85%. This procedure will go on until all 21 million Bitcoins have been mined, which should happen sometime around 2140. There are now 19.6 million Bitcoins in use.
Head of Standard Chartered Bank's crypto research, Geoff Kendrick, forecasts that Bitcoin will hit $100,000 by year's end, citing the halving as a possible catalyst for price growth.
With a market valuation of $1.25 trillion, Bitcoin hit its highest level since December 2021 on March 4, 2024, at $63,748. Investor confidence has increased as a result. There are 10,829 blocks left in the countdown to the halving, which is scheduled to happen in April 2024—just 69 days away.
Is $1,000,000 Possible for Bitcoin by 2025?
Bitcoin aficionados often forecast the future of their preferred cryptocurrency with extreme optimism, sometimes going to improbable heights. After the value of Bitcoin surged recently, there have been talks suggesting that BTC, the biggest digital currency in the world, may hit $10 lakh by 2025.
Several well-known members of the cryptocurrency community have proposed this ambitious sum of $10 lakh. In one of its most recent research papers, Standard Chartered, a well-known British multinational bank, updated its projection for Bitcoin prices, stating that they would likely range from $100,000 to $120,000 by the end of 2024 due to greater profitability for miners of the cryptocurrency. Additionally, according to the bank, Bitcoin will hit $50,000 by the end of this year.
Entrepreneur Samson Mow, the CEO of JAN3, predicts that in the next five years, the value of Bitcoin would reach $1 million. In a similar vein, investor and former Coinbase chief technology officer Balaji Srinivasan boldly predicted that Bitcoin might hit $10 lakh in less than 90 days.
Srinivasan based his assertion on the theory that when global inflation increases, the dollar's value would decline, and more people will invest in Bitcoin. The term "hyperinflation" describes a significant rise in prices for products and services over time.
It is improbable that BTC will reach such a major milestone in 2023 or even within 90 days, according to cryptocurrency specialists, even if it may ultimately surpass $10 lakh.
Regarding Srinivasan's forecast, Marshall Beard said that while it would be amazing if Bitcoin reached a million dollars in 90 days, such quick development would not be desired. He predicted that it may take up to ten years for the price of Bitcoin to reach such an extreme level.
One thing is certain among the many predictions about Bitcoin: the cryptocurrency has had several losses but has always recovered stronger. Crypto fans now feel more confident about investing in decentralized currencies because of this robustness. However, it's unclear if Bitcoin will continue to grow or encounter difficulties in the future; therefore, investing in Bitcoin carries some risk. It's critical to begin Bitcoin trading with the knowledge that you may not get the rewards you were hoping for on your investment.