I think it’s important to first find what makes Bitcoin special
during this year According to analysts’ price forecasts, the largest crypto Bitcoin is preparing to make history Several factors could push the price of Bitcoin to more than $100,000 in the bull run of 2024. So, here is a detailed look at many reasons why Bitcoin price could reach $100,000 by 2025. ALTCOIN will also increase with this
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Institutional Engagement with Bitcoin Spot ETFs
According to a study by Goldman Sachs (GS), institutional investors stand to gain from the introduction of spot bitcoin (BTC) exchange-traded funds (ETFs) because these products will enable them to invest in as proxies with low management fees and take part more actively in options hedging and arbitrage techniques.
With Spot Bitcoin ETFs, money managers are embracing Bitcoin aggressively. These funds make up 3.3% of the entire Bitcoin supply. Furthermore, big banks like BlackRock have been steadily increasing the amount of Bitcoin that they own in their traded funds. This infusion of institutional money gives Bitcoin legitimacy and adds a substantial amount of liquidity to the market, maintaining its scarcity and driving up its price.
Bitcoin Price’s Historical Correlation With Halving Events
Bitcoin price will have new turning legs after the halving events. With only 47 days left until the next halving in 2024, investors’ expectations are flying. Examining historical data reveals the deep impact of past halving events on the price of Bitcoin. In 2012, after the halving, the price of Bitcoin rose from $12 to an astonishing $1,200. What will it cost this time?
Bitcoin price surges after halving
The surprising events of 2012, 2016, 2020 show that the price of Bitcoin can reach $150,000 by 2025. If Bitcoin reaches $100,000 in 2024, then the Bitcoin price will create a new history.
The halving of 2016 saw a rise from $650 to an unprecedented $19,000, marking the peak of Bitcoin’s price before the start of the infamous ‘Crypto Winter’. Similarly, the 2020 Bitcoin halving triggered a remarkable surge, taking the price from $9,000 to an all-time high of over $68,000. The impending halving will see the mining reward drop from 6.25 BTC to 3.125 BTC, a trend expected to follow as it drives down the market.
cryptocurrencies under FASB
A recent catalyst for the adoption of Bitcoin by corporations is the Financial Accounting Standards Board rule. This regulation has encouraged companies to include Bitcoin in their reserves, and many have recognized the benefits of its properties as a store of value and the potential for long-term growth. As companies diversify their portfolios,
These problems include government institutions, market volatility, accounting methods, financial statement implications, public opinion, etc. In particular, the topic of classifying cryptocurrencies is discussed and decision makers are urged to make changes. Many opinions exist on the best way to classify cryptocurrencies. Bitcoin is increasingly becoming a strategic asset as companies diversify their portfolios.
Central Banks Adopting Bitcoin
On the global stage, nations and central banks are turning to Bitcoin to hedge against inflation and economic uncertainties. And cryptocurrencies have emerged as new forms of digital money and payment structures that allow users to conduct peer-to-peer transactions without the intervention of financial intermediaries. Salvador’s bold decision to adopt Bitcoin as fiat currency Furthermore, as traditional fiat currencies face challenges, Bitcoin emerges as a strategic asset to hedge against the potential devaluation of national currencies. Increased acceptance can definitely help increase its value.
Fed’s Expected Rate Reductions Could Push Up the Price of Bitcoin
The Federal Reserve may implement rate cuts in June this year. As the Fed rates policy changes, investors are expected to seek alternative stores of value. Bitcoin, with its decentralized nature and limited supply, stands out as an attractive alternative asset.
The long-awaited easing of liquidity has been widely seen as a significant bullish tailwind for Bitcoin (BTC), along with the spot ETF launch and the Bitcoin blockchain’s quadrennial mining reward halving.
This is because borrowing capital will be cheaper from an investment point of view. Therefore, investors can take advantage of the opportunity to invest in high-risk assets like cryptocurrencies. Additionally, being the largest digital currency, Bitcoin has gained significant credibility over time, allowing its adoption in the event of a Fed rate cut. may increase.
Bitcoin As Inflation Hedge
The allure of Bitcoin as a hedge against inflation is only increasing. Individual investors, as well as governments and institutional investors, are searching for strategies to protect themselves from inflation. Due to its limited amount and decentralized structure, Bitcoin is an excellent option for wealth preservation in the face of inflationary problems. As a result, inflows will rise, which will raise the price of bitcoin. Additionally, altcoin could be profitable.
Bitcoin price expected to gold’s
It is anticipated that Bitcoin spot ETFs would replicate the effect of gold by bringing billions of dollars into the market. It is anticipated that demand for Bitcoin would rise as a result of ETFs’ enhanced liquidity. Should the gold price trend from 2003 be replicated, its value might surpass $120,000 by the following year. Gold Bullion Securities, the first gold ETF, debuted on the Australian Securities Exchange on March 28, 2003. An ounce of gold cost $330.30 at that time.
According to Bullion by Post, its value increased by more than 27% year-over-year to $421.25 an ounce in less than a year. Given that the price of gold will increase by 13% in 2023, this is far above recent patterns. These happenings will all have an impact on Bitcoin.
Moreover, the price of gold increased to $485 in less than a year after SPDR Gold Shares, the first gold ETF in the US, was introduced on November 18, 2004.
Nearly attained, indicating an 11% gain.
Consequently, a surge to around $54,000—a 27% increase from the current price of about $43,000—is predicted soon. Furthermore, as some prominent institutions, like Standard Chartered, have lately forecast, its value might double from this level and soar past $12,000.
