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Bitcoin Could Reach $125,000 in 2024



The growing interest from institutional investors surrounding Bitcoin could fuel a new bull market, the fifth in its entire history

On June 22nd of last year, Bitcoin reached its one-year high. This date marks the beginning of the fifth bull market cycle. Looking back at history, when that signal is triggered, Bitcoin has delivered average returns of over 310%.

Under this same signal, speculations arise about how high the price of BTC could soar, which is currently estimated to reach $125,000 for the coming year.

In contrast, the most opportune moment to invest in this market was in October of last year when Bitcoin was trading just above $17,000.

In total, BTC has gone through about five bullish periods throughout its history. Each of them was triggered by one reason or another.

The first one started in 2011. Back then, the focus was on BTC as a novel way to conduct transactions.

China marked the second cycle. Investors’ interest in using it as an alternative to their local currency drove up the cryptocurrency.

The third cycle emerged amid the Initial Coin Offering (ICO) fever, providing a new way to establish and finance companies. And finally, the fourth one was based on the rise of NFTs.

Bitcoin Gears Up for Takeoff

Beyond past stories, what sets this new bullish cycle apart is the participation of financial institutions.

Institutions are turning their attention to Bitcoin because it solidifies itself as an investment resembling traditional assets like gold and Treasury bonds.

However, another key reason behind this phenomenon is the concern surrounding the relationship between the United States’ debt and its Gross Domestic Product, which is seen as unsustainable.

Hence, many institutions have chosen to diversify their portfolios and are now using Bitcoin as a hedge against inflation.

bitcoin price matrixport

The company Matrixport published an analysis in which it postulates that Bitcoin will reach $45,000 by December of this year or January of the next. Then, it will experience a brief drop in February and finally climb to $64,000 in the second half of the year.

These projections are supported by the upcoming Bitcoin halving, which has historically contributed to driving up its price. Another factor boosting the rally is the interest from major players such as BlackRock and Grayscale, among others. They have submitted their proposals to the SEC for the creation of Bitcoin ETFs.

As institutional investors enter the market, interest and confidence are growing. The 16% increase in Bitcoin’s value over the last week is irrefutable evidence of this trend.