Prediction: Bitcoin will reach $100,000 in 2024

After a 65% plunge in 2022, Bitcoin (BTC -0.15%) We achieved a monumental win this year. The world’s leading digital asset has surged nearly 160% in 2023, a rise that far outpaces that of the stock market.

As of this writing, this top is cryptocurrencyThe price is approximately $43,700. However, I believe it is very likely that I will reach the coveted $100,000 by the end of 2024.

Read on to find out why Bitcoin could hit an all-time high.

ready to take off

As if Bitcoin’s returns in 2023 weren’t enough, there are several catalysts on the horizon that could push Bitcoin even higher.

First of all, there has been a lot of talk about potential locations. exchange traded fund (ETF). Major asset management companies, etc. black stone Fidelity and Fidelity Securities and Exchange Commission To bring these products to market. Many industry observers believe this could be approved as early as January.

Bitcoin is set to profit. Not only would a spot ETF provide a stamp of approval for this digital asset, essentially legitimizing it in the financial services industry, but it could also lead to a lot of new capital heading into Bitcoin. Higher demand may cause prices to rise.

Macro factors may also ease further. As inflation continues to show signs of cooling, Fed officials may be prepared to cut interest rates multiple times in 2024. And these loose monetary policies are generally beneficial to risk assets.

Of course, it is difficult to know how much of this optimism is already reflected in the price of Bitcoin. However, this is still a potentially positive development worth keeping an eye on.

Perhaps the strongest catalyst will be next year. bisector. This event, which takes place approximately every four years, halves the new supply of Bitcoin entering the market. The situation of increasing demand and decreasing supply has been extremely bullish for Bitcoin in general. The next halving is expected at the end of April.

Maintain the right mindset

Before you go out and add Bitcoin to your portfolio, it’s best to keep in mind that this is still a very volatile asset. For some investors, the nature of the ups and downs may be too much to handle. And for those who are or are about to retire, owning Bitcoin may not be possible.

Even for those who are ready to invest, a wise strategy is to buy only enough to lose. This is especially true for those who are unfamiliar with Bitcoin. Clearly, as you learn more and gain greater confidence, increasing your quota may be the right move.

As with all investments, remember to maintain a long-term time horizon. In Bitcoin, this is doubly important. You should plan on holding on for the next 10 years to see how things unfold. In other words, don’t expect to get rich quick.

And while I believe $100,000 in Bitcoin in 2024 is a completely realistic outcome, I’m not sure. The ingredients are in place for the return of the monster, but it’s impossible to know what will happen in the next 12 months.

Investors should remain optimistic about Bitcoin. But the best investors also know that things don’t always go as planned.