Why Some Crypto Experts Predict Bitcoin Will Soar to Record Highs in 2024
The new year is starting off strong for crypto: Bitcoin prices are hovering around $45,000, their highest in almost two years. But can the digital currency continue to rise, or will the streak of gains it kept up through the past year peter out?
The last 12 months have seen a comeback for both bitcoin and the cryptocurrency industry at large. While 2022 was fraught with controversial headlines (FTX collapse, anyone?) and price troughs, 2023 saw bitcoin values rise by over 155%. At least some of this success can be chalked up to an improving overall economy; job gains, the deceleration of inflation and the prospect of interest rate cuts this year have helped to bolster stocks, which have been shown to follow similar price patterns as cryptocurrencies.
However, that's all in the past — anything can happen in 2024. Where are bitcoin prices likely to go this year? Here’s what experts are saying.
“The Federal Reserve's policies and the broader governmental stance on monetary issues will play a significant role in shaping the crypto market landscape,” says Martin Leinweber, digital assets product specialist at MarketVector Indexes.
Indeed, crypto benefited during 2023 in spite of the Fed's interest rate hikes. The central bank's upcoming cuts, which would make the cost of borrowing money cheaper, could make tailwinds even stronger for speculative assets like bitcoin because they typically raise investors’ tolerance for risk.
