Bitcoin price briefly passed $64,000 on Monday morning in Asia, which is less than 10% from its all-time high of $69,000 in November 2021. The value of the overall cryptocurrency market has passed $2.5 trillion. The Bitcoin price rally comes after spot Bitcoin exchange-traded funds (ETFs) were approved and launched in the US earlier this year, attracting significant investments and reigniting excitement in the cryptocurrency market.
The factors behind a bull market
According to LSEG data, spot Bitcoin ETFs drew in $420 million on a single day - February 27 - marking the highest inflow in less than two weeks.
The Bitcoin price is also rising in anticipation of the upcoming Bitcoin halving, which is expected to take place in April this year. Some experts expect the Bitcoin price to increase after the halving, which involves lower mining rewards and a reduction in the block approval rate.
The halving adds to the overall bullish sentiment because a maximum of 21 million Bitcoin can be mined. So far, 19 million have been mined.
Nine of the newly launched spot ETFs have a total exceeding 300,000 Bitcoin, which is seven times the amount of new Bitcoin mined since January 11. After the halving, the number of new Bitcoin mined daily will drop from 900 to 450.
Circulating Bitcoin tops $2 trillion
The value of all the circulating Bitcoin passed the equivalent of $2 trillion for the first time this month, CoinGecko data shows. This reflects an increasing Bitcoin price.
Bullish outlook on Bitcoin price
Rob Chang, CEO of Gryphon Digital Mining, talked about the forecasts surrounding the Bitcoin price in the future in an interview with The Street. The interview explored market psychology, historical patterns, and educated speculations, giving an overview of what might lie ahead for the Bitcoin price and the cryptocurrency market in general.
Bitcoin halving has initiated considerable speculation and debate, with Bitcoin price movements often reflecting the market's reaction to and expectations of the reduced mining rewards.
Chang is bullish on the Bitcoin price right before and long after the halving. He expects a consistent rise in the Bitcoin price and expects a new all-time high. His bullish outlook is rooted in the belief that the market's increased awareness of halving and sophistication will soften the usual pre- and post-halving Bitcoin price volatility.
Bitcoin price will break past $70K
Chang predicted the Bitcoin price would break $70,000 before the halving. The momentum will set the stage for even more significant Bitcoin price gains by the end of 2024.
Chang went so far as to predict a Bitcoin price of at least $125,150 by the end of the year, with possibilities of even higher growth. This estimate is in line with a broader bullish sentiment among members of the cryptocurrency community. Some have predicted a Bitcoin price of over $200,000.
More conservative Bitcoin price predictions range from $35K to $88K
According to more conservative estimates, the Bitcoin price is expected to reach $88,000 in 2024, settling at approx. $77,000 at the end of the year. The bears predict the Bitcoin price to drop to $35,734 by the end of the year, but even they say this is the lowest possible price.
According to Komodo CTO Kadan Stadelmann, Bitcoin is facing a lot of pressure because of the upcoming halving and because leading firms and institutional investors are demonstrating an increasing interest in Bitcoin, which is likely to propel demand, EuroNews wrote.
The Bitcoin price could go up if the US Federal Reserve reduced the benchmark rate, which is at a historical peak. Analysts anticipate more liquidity to flow into Bitcoin as a result.
A speculative bubble
However, not everyone is so optimistic about the Bitcoin price and altcoin prices in general. John Hawkins of the University of Canberra considers cryptocurrency to be "a speculative bubble." At the beginning of February, he predicted a Bitcoin price increase if the new spot Bitcoin ETFs proved to be popular.
However, he still considers Bitcoin to be a speculative asset in the medium to longer term. He recalled the high expectations about similar ETFs in 2021, only for the Bitcoin price to crash later. Other analysts are more optimistic about the Bitcoin price. Bitcoin is expected to reach $122,688 next year and $366,935 in 2030.
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