The cryptocurrency market is gearing up for a zoom ride in 2024 with Bitcoin price predicted to hit a historical $100,000 mark this year, amidst the growing euphoria around Bitcoin ETF (exchange-traded fund) approval by the US market regulator and the next halving of the digital currency creating waves of positive sentiments among investors.
The crypto market witnessed a major boost at the start of 2024 with Bitcoin (BTC) surging by almost 12 percent to cross the $47,000 mark on Tuesday, taking the total cryptocurrency market cap towards the $1.75 trillion mark for the first since April 2022.
The US Securities and Exchange Commission (SEC) is expected to approve the BTC ETF as early as this week, according to some media reports.
Several industry players including leading crypto financial services platform Matrixport and influential trader Scott Melker predict that Bitcoin could cross the $50,000 mark and even surge up to $54,000 in the next few days once the SEC approves the ETF.
Significantly, the latest market surge is showing a wider rally, with altcoins like Ethereum, Solana, AVAX, and DOT also registering significant spikes in their values.
Mixed views on Bitcoin ETF impact
Industry analysts and market commentators, however, have mixed views on the impact of ETF approval on Bitcoin’s short-term price.
“Bitcoin ETF approval by the SEC is expected to be just a matter of time and a regulated Bitcoin financial product in the US will be a game changer for the digital asset industry,” Om Malviya, President at Tezos India, a blockchain adoption venture, told Arabian Business.
“The healthy amalgamation of traditional and modern finance can create a robust singular force that is capable of overhauling the global financial system by deploying blockchain technology,” he added.
Malviya said in 2023, global banking giant Standard Chartered predicted that Bitcoin may touch the $100,000 mark by the end of 2024.
“The current market momentum clearly shows that Bitcoin is aiming for the $100,000 mark by the end of 2024,” he said.
Gracy Chen, Managing Director of Bitget, said the cryptocurrency market is poised for significant developments as we step into 2024.
“BRC-20, ARC-20, and Bitcoin scalability will be the key sectors to watch in 2024,” the top executive of Bitget, billed as the world’s largest crypto copy trading platform, told Arabian Business.
She said the technological upgrades have laid the foundation for the fervor surrounding Bitcoin scripture in 2023, with its value gradually being realised by the market.
“It is anticipated that the likely approval of the Bitcoin ETF in 2024, along with the next halving, will become a new narrative for BTC scripture,” Chen said.
Cryptocurrency will be the future of money
Dhruvil Shah, SVP – Technology, Liminal Custody Solutions, said Bitcoin emerged as one of the best-performing asset classes of 2023, outshining the traditional markets.
“The much-awaited Bitcoin ETF approval by the SEC will accelerate the mass adoption of digital assets and encourage global institutions to begin their digital asset journey,” he said.
Shah said digital assets are considered the future of money for many reasons.
“One of the best use cases of digital assets – faster and cheaper remittance which enables the movement of funds at a lightning speed and a fractional cost – will be another factor which will drive mass adoption of these currencies,” he said.
“If we look at the last 5 years, digital assets like Bitcoin and Ethereum have transformed the financial landscape around the globe by empowering users with decentralisation, transparency, low transaction cost, and accessible financial services,” Shah said.
Ryan Lee, Chief Analyst at Bitget Research, said overall, the current sentiment in the cryptocurrency market is bullish, especially as the Bitcoin halving event approaches and traditional institutions’ investment interest in BTC increases.
Lee, however, cautioned that the cryptocurrency market has high volatility.
“Although there are opportunities to achieve wealth effects, there are also greater market risks,” he said, adding that investors should continue to pay attention to the impact of the news [about BTC ETF approval], prepare trading strategies in advance and set take-profit and stop-loss points.
Shivam Thakral, CEO of BuyUcoin, India’s second-longest-running digital asset exchange, said the fact that the latest surge is a broader cryptocurrency market rally with most of the altcoins witnessing a jump in their prices shows the market as a whole is expected to climb new heights this year.
He said Bitcoin started 2024 on a strong note as it surpassed the $47,000 mark for the first time since April 2022.
“The growing optimism around the ETF approval by the SEC is driving the current market rally,” Thakral said.
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