- Bitcoin’s price is forecasted to reach $70,000 by end of 2024 according to 10X Research, driven by favorable macro environment including high inflation and geopolitical tensions.
- Monetary policies by central banks are boosting Bitcoin’s price, with low interest rates and stimulus spending prompting investors to seek alternative assets.
- Accelerating institutional adoption of Bitcoin by banks, companies, and investment firms adds legitimacy and increases demand, also contributing to projected price growth.
The crypto market has seen tremendous growth over the past few years. One cryptocurrency in particular, Bitcoin, has seen its price rise exponentially. According to research by 10X, Bitcoin’s price is expected to reach $70,000 by the end of this year. There are several key factors driving this bullish forecast.
Macro Environment
The current macro environment is very favorable for Bitcoin. High inflation rates around the world have prompted many investors to seek out alternative stores of value. Bitcoin, with its fixed supply and independence from central banks, is an attractive hedge against inflation. Its scarcity and decentralized nature make it a unique macro asset.
In addition, geopolitical instability and uncertainty have led to increased demand for “digital gold” – assets like Bitcoin that are not tied to any particular country or region. Bitcoin has established itself as a global asset and its price often rises during times of geopolitical tensions as investors flock to it as a safe haven.
Monetary Tailwinds
Loose monetary policies by central banks around the world continue to benefit Bitcoin. With interest rates at rock-bottom levels, investors have been forced to seek returns elsewhere, pumping money into risk assets like cryptocurrencies. The huge amount of stimulus spending has also raised concerns about currency debasement, again making scarce assets like Bitcoin more appealing.
These expansionary monetary policies show no signs of reversing anytime soon. This steady supply of cheap money from central banks will likely continue to provide tailwinds for Bitcoin’s price.
U.S. Election Cycle
Bitcoin has historically performed very well in the 12-18 months following a halving event. As the next halving coincides with the 2024 U.S. presidential elections, 10X expects this cycle to play out again.
Halving events, where the Bitcoin block reward paid to miners gets cut in half, happen roughly every four years. By constricting supply, halvings tend to be very bullish for Bitcoin’s price. The upcoming 2024 election cycle in the U.S. could also drive increased speculative interest.
Increasing Traditional Finance Demand
Demand for Bitcoin from institutional investors and traditional finance firms continues to grow steadily. Major banks like Goldman Sachs and Citibank are now offering crypto services. Established companies like MicroStrategy and Tesla have allocated parts of their treasuries to Bitcoin. And ETFs as well as futures-based investment products have allowed more mainstream investors to gain exposure.
This ramping up of demand from the traditional finance sector adds legitimacy and makes higher price targets more feasible. 10X expects this accelerating institutional adoption to be a key driver of Bitcoin’s price appreciation through the end of 2024.
Conclusion
While Bitcoin remains a volatile asset, the long-term prognosis looks very positive. Current macro conditions combined with strong fundamentals point to robust price growth ahead. If 10X’s predictions are accurate, new all-time highs could be reached by the end of 2024 as Bitcoin cements its status as the global digital reserve asset.
