After a 65% dip in 2022, Bitcoin (CRYPTO: BTC) has emerged as a major victor this year, soaring by approximately 160% in 2023, far outstripping stock market gains.
Presently valued around $43,700, Bitcoin may well breach the coveted $100,000 threshold by the close of 2024.
Why the confidence in Bitcoin’s surge?
Potential Lift-Off: Beyond Bitcoin’s remarkable gains this year, several upcoming catalysts could propel its ascent.
Discussions abound about the potential for a spot exchange-traded fund (ETF). Notable asset managers like BlackRock and Fidelity have sought SEC approval for these products, likely to be greenlit as early as January. Such ETFs would not only validate Bitcoin in financial circles but could also inject substantial capital, driving demand and, consequently, the price upward.
Macroeconomic factors might also play a role. Should inflation continue to ease, the Federal Reserve could consider multiple rate cuts in 2024, typically favorable for riskier assets like Bitcoin.
While the extent of this optimism’s impact on Bitcoin’s price remains uncertain, these developments are promising.
The most compelling catalyst is the upcoming halving event, occurring approximately every four years, which halves the new Bitcoin supply entering the market. Historically, reduced supply coupled with increased demand has strongly favored Bitcoin. The next halving is slated for late April.
Mind Your Approach: However enticing Bitcoin’s potential, it remains an exceptionally volatile asset. For risk-averse or retirement-minded investors, its fluctuations might pose undue stress or financial risk.
For those entering the Bitcoin sphere, consider starting with an amount you’re comfortable losing. As you become more knowledgeable and confident, adjusting your investment could be prudent.
Long-term perspective is crucial. Bitcoin demands patience and a decade-long outlook to see its full potential. Quick wealth isn’t guaranteed.
While $100,000 seems plausible for Bitcoin in 2024, it’s far from assured. The necessary elements for a remarkable surge exist, but predicting the next 12 months is impossible.
Optimism remains warranted, but investing wisdom dictates acknowledging uncertainties.
Should You Invest in Bitcoin Now?
Before diving into Bitcoin, consider this:
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