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- Bitcoin is predicted to have a 90 percent chance of hitting $40k by December, before proceeding to $63k in April 2024.
- Experts believe that several factors including a potential Bitcoin ETF approval, Bitcoin halving, etc could trigger this rally.
Bitcoin (BTC) has in a sudden twist of event switched from its bearish run to bullish with a 79/100 score according to market data. In the last 24 hours, the asset has surged by 1.3 percent to hold a firm position at the $38,376.78 price zone. Cumulatively, its three-month price performance is still up by 48.63 percent, adding $12,556.43 to its previous price.
The reason for the current sentiment is not yet clear, but some experts have linked it to the earlier-than-expected decisions by the US Securities and Exchange Commission concerning the spot Bitcoin Exchange-Traded Fund applications. Bloomberg analyst James Seyffart believes that the SEC wants to line up all the applications and approve them simultaneously by January 10, 2024.
The Bitcoin price is expected to go even higher after the much anticipated Bitcoin halving event next year. Currently, the Fear and Greed Index is hovering within the 70-74 zone, signaling a bullish sentiment from both retail and institutional investors.
Matrixport has also reported that Bitcoin could trade at around $63,140 in April 2024. Matrixport further reports that the asset could hit $125k in December 2024 with institutional adoption being the main catalyst. In the expected upward trajectory, it reported that Bitcoin could massively benefit from multiple factors including historical trends, mining reward halving, and accommodating geopolitical and macroeconomic factors.
More Analysis of the Bitcoin Price
Another interesting observation by Matrixport is that there is an 80 percent chance of Bitcoin surpassing $38k by the end of November. The asset also has a 90 percent probability of hitting $40k by the end of December 2023. With several factors favoring a bullish run, the volumes in the broader crypto market show buying pressure. One more interesting factor that favors these predictions is the US Federal Reserve decisions.
According to reports, the Fed has had its preferred gauge to measure inflation Personal Consumption Expenditures (PCE) Index, reduced to 3 percent. The core PCE is also fixed at 3.5 percent. This indicates that the Fed may likely cut the rates.
To take advantage of the expected bull run, MicroStrategy purchased 16,130 BTC when the asset was trading at $36,785. Microstrategy’s Michael Saylor has disclosed that he would not slow down on Bitcoin as it offers several benefits including operating as a store of value and hedge against inflation. According to him, the scarcity and durability nature of Bitcoin is what makes it a better alternative to most of the existing investment strategies such as stocks and gold.
I started going down this rabbit hole of thinking what is money when I starting thinking about what is money when I realized I was going to lose my money and destroy the livelihoods of all my employees…when Jerome Powell states I’ve been thinking of raising interest rates you know your strategy of investing in bonds is broken.
Some analysts have also predicted that Bitcoin could pull back ahead of its potential rally to $40k. Similar to last year, a potential rally is expected to happen after Christmas.
