After tumbling 65% in 2022, Bitcoin (BTC -1.27%) has been a monumental winner this year. The world’s leading digital asset has skyrocketed about 160% in 2023, a gain that beats the stock market’s gains by a huge margin.
As of this writing, this top cryptocurrency’s price sits at about $43,700. However, I believe there’s a very real possibility that it reaches the coveted $100,000 mark by the end of 2024.
Continue reading to see why Bitcoin could hit a new all-time high.
Ready for take-off
As if Bitcoin’s returns in 2023 weren’t enough, there are multiple catalysts on the horizon that could propel it even higher.
For starters, there has been a lot of chatter about a potential spot exchange-traded fund (ETF). Major asset managers, including BlackRock and Fidelity, have filed applications with the Securities and Exchange Commission to bring these products to market. Many industry observers think these will be approved as early as January.
Bitcoin is set to benefit. Not only would spot ETFs provide a stamp of approval for this digital asset, essentially legitimizing it in the financial services industry, but also, lots of fresh capital could be directed toward Bitcoin. Higher demand could lift the price.
Macro factors could also become more accommodative. With inflation continuing to show signs of cooling, Federal Reserve officials might be ready to cut rates several times in 2024. And this looser monetary policy is generally favorable for riskier assets.
Of course, it’s hard to know how much of this optimism is already factored into the price of Bitcoin. But these still are potentially positive developments to pay attention to.
Perhaps the most potent catalyst is next year’s halving. Happening approximately every four years, this event cuts in half the new supply of Bitcoin that enters the market. This situation of reduced supply paired with rising demand has usually been extremely bullish for Bitcoin. The next halving is expected in late April.