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Bitcoin Price Prediction for 2024
The price of Bitcoin (BTC) is expected to soar beyond $80,000 this year thanks to the recent success of exchange-traded funds (ETFs), according to Bitwise Chief Investment Officer Matt Hougan.
ETFs Driving Bitcoin’s Price
The approval of Bitcoin ETFs has shattered records and triggered an influx of funds into the cryptocurrency since mid-January. Hougan highlighted the sustained demand for ETFs, which has exceeded his expectations, akin to Bitcoin’s IPO in the US market, leading to further institutional investment and driving up prices.
Bitwise’s Success in the ETF Market
Bitwise has experienced significant success in the ETF market, with approximately $126.5 million in inflows in just one day, marking its second-largest intake since its launch. It has surpassed $1 billion in assets under management, placing it alongside industry giants such as BlackRock, Fidelity, and Ark Invest’s 21Shares.
Increased Institutional Demand
Despite the availability of ETFs, not all financial institutions have gained access to them. Retail investors have been the primary participants in trading thus far, while banks and wirehouses are still conducting extensive due diligence before offering ETFs to clients. Nevertheless, analysts believe that the increased demand from institutions will contribute to a supply crunch and subsequent price surge.
Bitcoin’s Projected Price Movement
Bitwise’s research predicts that Bitcoin will trade above $80,000, driven by inflows into spot ETFs and the upcoming Bitcoin halving, which will reduce the rewards for Bitcoin miners, thereby limiting the supply of new Bitcoin entering the market.
Potential Obstacles to Consider
Regulatory uncertainties and untapped pools of Bitcoin held by governments or tied up in litigation could introduce supply pressures that may temporarily hinder price growth. However, Hougan remains optimistic about Bitcoin’s adoption facilitated by the availability of ETFs.
Increased Attention from Wall Street
The increased attention from Wall Street represents a significant shift that is unlikely to be reversed, signaling a promising future for Bitcoin within the realm of traditional finance. ETFs tracking the spot price of Bitcoin have seen strong inflows, reaching record volumes in 2024.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
