Bitcoin Price Poised for $100,000 by Year-End Despite Recent Dip, Analysts Say
Bitcoin (BTC) may still reach $100,000 by the end of 2024, according to industry experts, despite a recent market correction. This optimistic outlook comes amid several tailwinds that could propel the world’s leading cryptocurrency higher.
Cooling Inflation, Potential Rate Cuts, and ETF Inflows
A key factor is the recent dip in U.S. inflation. The Consumer Price Index (CPI) fell in June for the first time since May 2020, potentially paving the way for the Federal Reserve to cut interest rates later this year. This scenario would benefit risk assets like Bitcoin, as investors seek higher returns.
Matt Hougan, Chief Investment Officer at Bitwise, highlights the positive long-term outlook despite short-term headwinds. He points to factors like:
- Post-halving supply shortages: The Bitcoin halving event in April significantly reduced the amount of new Bitcoin entering circulation, potentially leading to price appreciation.
- Launch of Ethereum Spot ETFs: Increased interest in the broader cryptocurrency market through Ethereum ETFs could indirectly benefit Bitcoin.
- US Spot Bitcoin ETF demand: Growing inflows into existing spot Bitcoin ETFs suggest strong investor appetite for the asset class.
- Shifting political landscape: Potential policy changes under a new administration could favor cryptocurrency adoption.
New Leveraged Bitcoin ETFs Emerge
Further fueling investor interest are the recent launches of the T-REX 2X Long Bitcoin Daily Target ETF and the T-REX 2X Inverse Bitcoin Daily Target ETF. These new products offer leveraged exposure to Bitcoin price movements, catering to high-conviction traders.
Bitcoin Price Volatility Remains a Challenge
While the outlook is positive, Bitcoin’s inherent price volatility persists. The recent market correction stemmed partly from liquidations by Germany’s government and repayments from Mt. Gox, the defunct Japanese crypto exchange. Additionally, the high management fees associated with leveraged ETFs can erode returns for long-term investors.
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