Could Bitcoin Reach $100,000 in 2024?

With the cryptocurrency winter winding down and the optimism that often accompanies a new year, it’s worth exploring what 2024 might bring. Bitcoin (BTC 4.49%). Can they continue the momentum from last year? Or was there a revision to the forecast?

Let’s take a closer look and see what investors should expect in 2024 and why a $100,000 price tag might not be out of the question.

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Before getting into speculation, it is a good idea to consider and recognize a general overview of Bitcoin’s current position. First of all, Bitcoin has more than doubled in value since the harsh cryptocurrency winter of 2022.

Like any market, ecosystem, or natural phenomenon, periods of contraction are followed by growth, and cryptocurrencies appear to follow this pattern. While there may be some ambiguity in measuring the duration of a cryptocurrency bear market, the overwhelming consensus is that this was one of the longest bear markets in cryptocurrency history. This drastic adjustment is likely to delay any significant resurgence.

However, after rising more than 150%, Bitcoin’s value should more than double again in 2023, reaching $100,000, or about 115% above its current price. Bitcoin is no stranger to generating impressive returns in a short period of time. But does this mean you’ll hit the coveted six figures?

How Bitcoin Reached $100,000

To answer this question as simply and holistically as possible, we only need to consider two variables: supply and demand. This year, Bitcoin will experience its fourth halving. Halving forms the basis of Bitcoin’s monetary policy and underpins its increasing scarcity by halving the supply growth rate of Bitcoin approximately every four years (or 210,000 blocks are added to the Bitcoin blockchain).

Bitcoin supply growth once exceeded 10%, but is now down to around 1.75%. However, in April this year, the rate will drop to 0.85%. This halving process will continue until all 21 million coins have been mined in 2140. There are approximately 19.6 million in circulation today.

Complex code forces half of it, but the concept is relatively simple. A decrease in the rate of supply growth creates additional pressure on prices even if demand remains constant. This is why Bitcoin increases by an average of 128% during a halving year. If a similar pattern were to unfold this year, the price of Bitcoin would exceed $100,000, measured from its current price of around $46,000.

However, there are additional factors to consider that will affect supply and demand and could make this halving unlike any in Bitcoin history. There are currently only 2.3 million Bitcoins available for purchase on exchanges. This is the lowest level since 2017. But most importantly, this halving marks the first time in Bitcoin history that there are fewer coins on the market than previous halvings.

For all of Bitcoin’s history, despite each halving, the total supply on exchanges has increased. But things have changed in 2020. Explanations for this will likely vary, but the most succinct is that demand is finally starting to outstrip supply. Now, Bitcoin’s historically low supply will come under even more pressure due to the upcoming halving.

Bitcoin Could Have More in 2024

These are very exciting times for Bitcoin. The Securities and Exchange Commission (SEC) announced yesterday that it has approved the first Bitcoin exchange-traded fund (ETF). Development of technological innovations such as Layer-2 solutions such as: stack, It is in progress. And for the first time in nearly three years, the overall outlook for the bull market is brightening.

Considering these factors, along with the next halving and unprecedented supply shortages, the possibility of Bitcoin fetching a $100,000 price tag is definitely in the cards. In fact, it wouldn’t be difficult to imagine a scenario where Bitcoin surpasses six figures in 2024.