Bitcoin Faces Uncertain Future: $100,000 Target Unlikely in 2024″
Bitcoin has been struggling to maintain the $60,000 level for some time, but it seems increasingly unlikely that the cryptocurrency will reach the $100,000 mark in 2024. Despite earlier predictions by some crypto experts, Bitcoin faces significant resistance at the $60,000 level, casting doubt on its ability to achieve such a milestone by the end of the year.
According to Quartz.com, a site specializing in cryptocurrency news, this stagnation is not limited to Bitcoin alone but is also affecting the broader crypto market, which has struggled to achieve significant growth in recent months.
Several factors contribute to Bitcoin’s stalled momentum, with its increasing correlation to macroeconomic conditions being the primary reason. As Bitcoin matures, it has become more susceptible to the influences of global market dynamics and economic factors, which now play a larger role in shaping its trajectory than in the past.
After enduring a prolonged crypto winter following the collapse of the FTX exchange, Bitcoin made a strong comeback in 2024. The cryptocurrency underwent a significant technical event known as “halving” and gained broader acceptance. It reached a peak of $73,737 in March after the SEC approved Bitcoin ETFs.
Adam Back, a prominent figure in the crypto world and one of the early cryptographers who helped lay the ideological foundation for Bitcoin, believes that the long-awaited rise to $100,000 should happen soon. However, it seems increasingly unlikely that Bitcoin will reach or even approach the $100,000 mark in 2024 due to the complexities involved in achieving such a feat.
Political uncertainty is also a key factor. While crypto expert Noelle Acheson believes that Bitcoin could surpass $100,000, she acknowledges that it is unlikely to happen this year. She suggests that a positive resolution to political uncertainty, such as a victory for former President Donald Trump in November or Vice President Kamala Harris expressing support for crypto development, could make this possible, especially considering the potential for an interest rate easing cycle. However, she cautions that this is not a prediction for this year.
Read more Cryptocurrency Market Faces Uncertainty: Bitcoin Struggles Amid Broader Downtrend"
Bitcoin’s halving event in April, which reduced mining rewards from 6.25 to 3.125 Bitcoin, did not lead to a significant price increase as seen in previous halvings. Acheson notes that halving events often result in a temporary dip in Bitcoin’s price in the following months, so the current slowdown is not unexpected. However, this year presents a unique set of circumstances, with political factors and the AI boom playing a more significant role than in previous cycles.
Jag Kunar, Head of Financial Derivatives at Bitfinex LEO, attributes the complexity of the current market to various factors, including institutional investment patterns, regulatory developments, and macroeconomic conditions impacting Bitcoin’s price performance. He added, “There is always a ‘buffer period’ after the halving, which typically occurs. Although the period immediately following the halving saw some volatility, this phase could represent a typical post-halving accumulation stage, as observed in previous cycles.”
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