Bitcoin’s trajectory in 2024 is the subject of much attention, and the possible approval of a spot ETF raises expectations. AllianceBernstein predicts a big year for Bitcoin, which could hit new highs of $80,000. The broader cryptocurrency market, including Ethereum, is showing promise with growing institutional interest.
Bitcoin’s price trajectory in 2024 is attracting a lot of attention. Particularly in light of the possible approval of a spot Bitcoin ETF (exchange-traded fund).
Several analysts anticipate a monumental year for Bitcoin, projecting a potential rise to a new all-time high.
AllianceBernstein’s Bitcoin Price Prediction
Optimism around Bitcoin (BTC) performance in 2024 is due to a confluence of factors. Notably, Bitcoin rose more than 150% in 2023, with an impressive rally that saw it reach $45,913 in early 2024. This is its highest since April 2022.
Despite this price rise, Bitcoin remains more than 30% below its all-time high of approximately $68,990, set in 2021.
Analysts at AllianceBernstein, a global asset management firm with $669 billion in assets under management, highlighted several key drivers for Bitcoin’s anticipated rise. The first is the possible approval of a Bitcoin spot ETF, a highly anticipated development by the cryptocurrency community.
The US Securities and Exchange Commission (SEC) is expected to rule on applications from prominent companies such as ARK Investments by January 10.
This approval, which is likely echoed by other asset managers such as BlackRock and Fidelity, could herald a new era of institutional investment in Bitcoin, driving its price towards $80,000.
Gautam Chhugani and Mahika Sapra estimate about $15 billion in total inflows by 2024. By 2028, they predict 10% of Bitcoin will be held in ETFs. Consequently, there will be a significant change in the way this cryptocurrency is traded and stored.
“We expect 2024 to be an inflection year for cryptocurrencies. The accumulation of Bitcoin ETF flows could be gradual, but claimants will fight hard to get an edge in this game of massive asset accumulation, fine-tuning Bitcoin advertising and branding, leading to a snowball effect,” note AllianceBernstein analysts.
Another major event on the horizon is the Bitcoin halving scheduled for April 2024. Historically, such halvings, which reduce the rewards for mining BTC, have led to substantial price appreciations in the following months. AllianceBernstein projects that this pattern will repeat itself, further fueling Bitcoin’s rise.
Likewise, Robert Kiyosaki, author of “Rich Dad, Poor Dad,” highlighted the importance of the upcoming Bitcoin halving:
“If you want to be rich, it is essential to have rich friends or, at the very least, friends who want to be rich. The Bitcoin halving is quickly approaching. Please pay attention to the Bitcoin halving, gold and silver in January, February and March. Please choose your friends carefully,” Kiyosaki highlighted.
AllianceBernstein: Other Cryptocurrencies Also Look Promising
The broader cryptocurrency market is also showing promise. AllianceBernstein expects Ethereum ETFs to be approved in June 2024. Therefore, Ethereum could potentially become the only other cryptocurrency to have a direct investment exchange-traded fund.
A bullish outlook on Bitcoin, Ethereum, and the cryptocurrency market in general is shared by several industry experts and thought leaders. Paul Brody, global blockchain leader at EY, remains optimistic about the growth of the cryptocurrency ecosystem due to the implementation of the Markets in Crypto Assets Regulation (MiCA) in the European Union. Seth Ginns, managing partner of CoinFund, believes in a boom in altcoins that can overshadow Bitcoin.
On the other hand, Denelle Dixon, CEO of Stellar Development Foundation, predicted a boom in tokenization and blockchain-based transactions, improving global financial inclusivity.
By Audy Castaneda
