Crypto executives say bullish trend is underway and Bitcoin could reach $100,000 in 2024

Cryptocurrency industry executives called for the start of a new bullish trend in 2024 with a growing number of voices calling for a new all-time high above $100,000 for Bitcoin.

Bitcoin With an increase of more than 120% this year, many are optimistic about the rise continuing into 2024.

“It feels like [2023]It took a year to prepare for the bull run that was yet to come. But the feeling is very promising [2024] And 25,” Ledger CEO Pascal Gauthier told CNBC in an interview last week.

The digital currency’s last record high was around $69,000 in November 2021.

Since then, the crypto industry has faced a number of issues, from the collapse of coins and projects to bankruptcies and criminal trials. Sam Bankman-Fried, the founder of FTX, once one of the world’s largest exchanges, faces more than 100 years in prison after being found guilty on seven counts of criminal fraud.

Meanwhile, Binance chief Changpeng Zhao pleaded guilty to criminal charges and stepped down as CEO of the company as part of a $4.3 billion settlement with the US Justice Department.

Many in the industry see these two cases as a line being drawn under the issues affecting the crypto market.

“I think once you get over the speculative phase, which I think we’re almost over, maybe not quite over yet, then you get real builders on the technology and those problems. Focus on things that can solve the world, “instead of being a giant digital casino for people to trade,” LightSpark CEO David Marcus told CNBC in an interview last week.

Marcus, the former leader of Facebook’s failed Diem stablecoin project, is now working on technology to improve Bitcoin as a payments network.

Now that those issues have been addressed, investors are focused on what the industry sees as positive developments. First, there is growing excitement that a Bitcoin exchange-traded fund or ETF may soon be approved. This could bring in big traditional investors who didn’t want to touch crypto before.

“I think what the ETF really means is that Bitcoin is going mainstream and this is what people have been waiting for,” Gauthier said.

The second development is the Bitcoin halving, which occurs every four years and is scheduled for May 2024. Halving occurs when miners, which are the entities that maintain the Bitcoin network, halve the rewards they receive for their work. This places a limit on the supply of Bitcoin – of which there will ever only be 21 million coins – and is often a factor behind a new rally.

“Many market participants expect a rally shortly after the halving, but given the ETF news, we could see a run-up well before that and leave most investors on the sidelines. This could lead to a massive price increase. Might be possible.” ” Vijay Iyer, vice president of international markets at cryptocurrency exchange CoinDCX, told CNBC.

There have already been some bold calls for Bitcoin in 2024.

It started last week with Standard Chartered reiterating its April price call that Bitcoin would reach $100,000 by the end of 2024. The bank said this will be driven by the approval of several ETFs.

According to CoinDesk data, this would mean an increase of about 160% from Friday’s price of around $38,413.

Matrixport, which bills itself as a crypto financial services firm, issued a note last week predicting that Bitcoin would reach $63,140 by April 2024 and $125,000 by the end of next year.

“Based on our inflation models, the macro environment is expected to remain a strong tailwind for crypto,” Matrixport said in its report. “A further decline in inflation is expected, making the Federal Reserve likely to initiate interest rate cuts.” Is.”

“Combined with geopolitical undercurrents, this healthy dose of monetary support should propel Bitcoin to new highs in 2024.”

Many commentators consider the easing of monetary policy helpful for Bitcoin, which is viewed as a risky asset. Meanwhile, some see Bitcoin as a kind of “safe haven” asset for pouring money into in times of geopolitical conflict.

Asked whether Bitcoin would reach $100,000 in 2024, Gauthier said “probably,” but declined to give a price forecast.

“What we see are strong fundamentals,” he said.

Iyer said Bitcoin price is “consolidating” below the “key level” of $38,000, which is bullish for Bitcoin. Once this level is broken, Bitcoin could next rally between $45,000 and $48,000, he said.

However, he warned that the rally, which is largely built on expectations of ETF approval, could fail if the product is rejected again by regulators.

“Complete ETF rejection could wreak havoc in this era as well, so there are definitely some things to keep in mind,” he said.

Correction: This story has been updated to reflect Bitcoin’s record high price.