Bitcoin had a big increase in 2023, going up by about 152% for the year. Many people who talk about finance, both from inside and outside the digital currency industry, think that this increase will keep going. In 2021, bitcoin reached its highest value, but in 2022, it had a tough time with the failure of important projects, problems with money availability, and some companies going bankrupt.
During that year, FTX, which used to be one of the biggest cryptocurrency exchanges globally, declared bankruptcy. In 2023, Sam Bankman-Fried, the founder, was convicted of all seven criminal charges brought against him by U.S. federal prosecutors.
In the same year, Changpeng Zhao of Binance admitted guilt to criminal charges and resigned as the CEO as part of a $4.3 billion settlement with the Department of Justice.
With those notable cases resolved, numerous cryptocurrency leaders view it as an opportunity to progress and put an end to the misconduct of two prominent figures in the industry.
Predictions for a New Bullish Trend
As excitement comes back to the crypto markets, industry leaders are heralding the beginning of a new bullish trend, primarily based on two factors, the “halving” of bitcoin and the possible approval of a bitcoin exchange-traded fund in the United States.
The halving is a scheduled occurrence in bitcoin that takes place every four years as specified in its code. During this event, the rewards received by miners for creating new bitcoins are reduced by half. This measure is in place to limit the total supply of bitcoin, which will never exceed 21 million. In past price cycles, the halving has consistently come before an increase in the price of bitcoin.
At the same time, there is increasing anticipation regarding the potential approval of the first-ever bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission, following years of resistance. If approved, investors would be able to purchase a product mirroring the price of bitcoin without the need to use an exchange or directly hold the digital currency. The industry is optimistic that this development will attract a broader spectrum of investors, especially large institutional investors.
With all of this excitement comes some quite bold predictions about bitcoin’s price. Here they are.
Standard Chartered: $100,000
In November, Standard Chartered reaffirmed its prediction of $100,000 for bitcoin, initially made in April. The bank explained that this surge would be influenced by the approval of multiple ETFs. Additionally, the bank noted that the halving event would provide further support for bitcoin.
CoinFund: Up to $500,000
CoinFund, a venture capital firm, has one of the most optimistic price predictions for bitcoin in 2024.
Seth Ginns, managing partner at CoinFund, stated that, “Bitcoin shows a robust inverse connection with the dollar and real yields, and both are currently declining. We also anticipate significant inflows following the introduction of the BTC spot ETF, along with increasing excitement about the probable approval of ETH (ether) spot ETFs later in 2024.”
Ginns expressed his belief that the industry is currently undergoing a phase of “regulatory normalization.”
He mentioned that, in the upcoming cycle, bitcoin could reach $1 million per coin. However, he also suggested a more “reasonable expectation” for 2024 would be to see bitcoin trading in the range of $250,000 to $500,000.
Conclusion
Bitcoin had a significant 152% increase in 2023, rebounding from a tough 2022. Key legal issues involving FTX and Binance were resolved, signaling a positive shift for the industry. Anticipation is high for a new positive trend, driven by Bitcoin’s halving and potential approval of a U.S. ETF. Optimistic price predictions, like Standard Chartered’s $100,000 and CoinFund’s up to $500,000, show growing confidence in Bitcoin’s future.
