Bitcoin could hit $180,000 by April of 2024, according to a new prediction by Fundstrat. The investment research firm is incredibly bullish on Bitcoin and sees several factors that could drive its price to new heights. With BTC already up roughly 80% since the start of 2023, Fundstrat believes this rally is just the beginning.
One of the main catalysts for Bitcoin’s potential surge is the upcoming halving event scheduled for April 2024. The halving will cut the reward for mining BTC to $12 million and is expected to increase its scarcity, thus driving up demand and potentially pushing the price to $180,000. Fundstrat’s prediction suggests a 500% upside from its current price.
Additionally, Fundstrat sees a Bitcoin ETF as a significant catalyst that could further boost demand. The firm believes that a Bitcoin ETF could bring in an additional $100 million in daily demand for the cryptocurrency. Currently, daily supply is only $25 million, so the equilibrium price would need to rise to match the increased demand.
The possibility of a Bitcoin ETF becoming a reality is becoming more likely, as prominent asset managers like Fidelity and BlackRock have recently filed for a Spot Bitcoin ETF. According to Sean Farrell, the Head of Digital Asset Strategy at Fundstrat, there is a 75% probability that the US Securities & Exchange Commission will approve a Bitcoin ETF. Such approval could attract new investors and generate further demand for Bitcoin, potentially turning it into a $300 billion category.
Bitcoin may also benefit from a more lenient monetary policy by the Federal Reserve. As the central bank considers its decision on interest rates, a switch to a more accommodative stance could favor alternative investments like Bitcoin.
It’s important to note that predictions in the cryptocurrency market are highly speculative, and the actual price of Bitcoin in 2024 could differ significantly from Fundstrat’s estimates. However, these predictions are based on the firm’s expertise and analysis of market trends.
Overall, Fundstrat’s bullish outlook on Bitcoin suggests that the cryptocurrency may continue its upward trajectory and reach new all-time highs in the coming years. As with any investment, it’s essential to conduct thorough research and consider the potential risks before making any investment decisions.
