Bitcoin has been a popular topic among crypto investors and news outlets, especially with major investment companies like BlackRock looking to introduce Spot Bitcoin ETFs. Over the past few months, the world's largest digital currency has experienced a surge in price, hovering around $30,000 for almost a month.
Fundstrat, an equity research firm based in New York City, has made a bullish prediction on the price of BTC. According to the firm, the cryptocurrency could reach $180,000 before its April 2024 halving.
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Fundstrat predicts Bitcoin at $180K in 2024, but what's the catalyst? Fundstrat Makes Bullish Bitcoin Prediction
According to a recent note from investment research firm Fundstrat, the price of Bitcoin could potentially surge in the next year due to the possibility of Spot Bitcoin ETFs being traded by investment firms such as BlackRock. If approved, these ETFs could attract mainstream investors and institutions to invest billions of dollars into Bitcoin. Fundstrat predicts that the current daily demand for Bitcoin, which stands at $25 million, could skyrocket to $100 million with the introduction of Spot Bitcoin ETFs. This would put Bitcoin ETFs in direct competition with the market for precious metals ETFs, which currently has a total market capitalization of approximately $230 billion. Fundstrat believes that the launch of a Bitcoin ETF could bring daily demand to $125 million, while daily supply is only $25 million, leading to a rise in the equilibrium price. Sean Farrell, Fundstrat's head of digital asset strategy, also anticipates that a Bitcoin ETF would attract new investors and generate increased demand for Bitcoin. Fundstrat predicts Bitcoin at $180K in 2024, but what's the catalyst?
Upcoming BTC Halving
The research note highlights the impact of the upcoming Bitcoin halving, which occurs once every four years. This halving reduces the reward given to miners for mining a block on the blockchain, leading to a decrease in inflationary pressure on BTC and a steady increase in its price. Fundstrat predicts that the reduction of the daily mining incentive to $6 million from its current $12 million will result in a significant increase in Bitcoin's price to achieve a state of equilibrium between buyers and sellers. This effect is expected to compound with the Spot Bitcoin ETFs, leading to a further price increase. Interestingly, Standard Chartered also predicts BTC reaching the $100,000 mark by the end of 2024.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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