Will Bitcoin Break Its ATH in 2024?

After falling more than 80% in 2022, Bitcoin gained significant momentum during 2023. The original cryptocurrency has gained back 150% in value, putting it in the spotlight again. Because of this, the mainstream media is buzzing about a prospective new all-time high for BTC in 2024. 

But how much of this is true? In this article, we try to assess whether Bitcoin can achieve a price above $69,000 in 2024. To this end, we explore the factors that drive Bitcoin’s success and might positively impact its price. 

Ultimately, you’ll have a good idea if you should exchange BTC to USD now or hold back until a genuine cycle brings BTC to a new ATH. Let’s get started. 

What Drives Bitcoin’s Success?

To better understand the eventuality of an upcoming bullish cycle, we’ve singled out several key factors that play in BTC’s favor. 

Market Adoption and Acceptance

As the original cryptocurrency that jumpstarted an entire industry, Bitcoin benefits from its pioneering status. Today, almost everyone has at least heard of Bitcoin and its “magical internet money” properties. 

In addition, Bitcoin’s staying power and endurance in bear markets have made it an increasingly interesting asset for institutional investors. Despite its short-term volatility, Bitcoin’s long-term resistance to inflation remains one of its main strengths. 

What’s more, merchants have been increasingly accepting BTC as a form of payment over the last decade. Today, it’s common for holders to be able to purchase goods and services with Bitcoin. This is also true for more expensive assets such as real estate or luxury cars.  

This widespread acceptance of Bitcoin as both an asset and a currency positively impacts Bitcoin’s staying power. 

Regulatory Environment

The past year has been quite chaotic in terms of Bitcoin regulations all over the globe. Coming out of appalling events such as the FTX exchange collapse, regulators have taken matters into their own hands. However, the SEC in the US has applied quite a heavy-handed method in regulating exchanges and cryptocurrencies. The regulatory body has sued multiple industry-leading entities such as Kraken, Coinbase, and Binance in this crackdown. The main reason for the lawsuits was the act of selling unregistered securities. This harsh approach has impacted the market negatively, Bitcoin included. 

However, considering the regulatory moves from different major countries, Bitcoin should come out quite unscathed in the end. Throughout history, regulatory bodies have proclaimed BTC as a commodity, which puts it in the clear. 

Moreover, the decentralization of the Bitcoin network doesn’t allow for a genuine shutdown or ban of the network. As long as users are running nodes and mining BTC, the network will remain accessible. 

Miners are also well-regulated in developed countries. Multiple mining entities are publicly traded companies in the US, and this ensures that regulators cannot simply shut them down. 

All in all, although the regulative measures have heavily impacted the cryptocurrency market as a whole, they have a much smaller impact on Bitcoin itself. 

Public Perception and Trust

To reiterate our previous point, Bitcoin’s longevity has managed to build trust within investors. Although Bitcoin’s volatility in the short term seems riskier than most store-of-value assets, the long-term returns have been nothing short of stellar. 

This steady increase in value over the years has solidified BTC as a deflationary asset, trusted by both institutions and retail traders. Case in point, Microstrategy, spearheaded by Michael Saylor, has acquired more than 150,000 BTC over the years. This investment is now worth over $6 billion, with $2 billion in profits. 

Additionally, the network’s decentralization enhances its security, which in turn grows trust. Today, many consider Bitcoin as the most secure blockchain network thanks to its high usage and hash rate. The costs of compromising the network are astronomical, making double-spending BTC nearly impossible. 

Market Liquidity

Thanks to its popularity, BTC is highly liquid on the market. Present on both centralized and decentralized exchanges, Bitcoin is often the main asset for these platforms. Bitcoin also holds the most volume in the trading market out of all cryptocurrencies. This ensures that even large, multi-million dollar trades have minimal impact on the price. 

What’s more, thanks to wrapped BTC on Ethereum, traders can access the asset without having to go through KYC at centralized entities. 

 

BTC Price Prediction 2024

With all this in mind, we can elaborate more on some crucial factors that provide a bullish scenario for Bitcoin in 2024. 

• Major financial institutions like Blackrock and Grayscale recently applied for BTC spot ETFs with the SEC. If the SEC approves them, this will allow mainstream investors to speculate on BTC while these institutions act as their custodians. The crypto sphere expects that this event might inject trillions of dollars into the market. 
• The next Bitcoin reward halving will occur in April 2024. After this event, the rewards for each block will be cut in half, decreasing the amount of BTC on the markets. 

Considering these scenarios, let’s have a look at some price predictions from reputable sources around the internet. 

Priceprediction.net has a very bullish forecast for Bitcoin in the next year. Their analysts predict a maximum price of $76,592 for 2024, with a yearly price average of $68,691. 

Their colleagues from digitalcoinprice.com are even more enthusiastic. Their maximum target for 2024 is $109,506, nearly double the asset’s previous all-time high. The expected price average from this platform is $103,123. 

Is It Time to Invest in BTC?

A common saying in the Bitcoin community is that it’s never too early or too late to invest in this asset. The original cryptocurrency has shown incredible resilience to inflation and managed to stay on top in both popularity and usage. What’s more, industry-defining events such as the ETF approval from the SEC and the halving are just around the corner. 

Considering the latest Bitcoin rally over $40,000, the crypto community expects BTC to reach a prospective all-time high in 2024. With that in mind, anyone interested in cryptocurrencies should start dollar-cost averaging into Bitcoin. The sooner, the better.