Bitcoin has experienced a strong resurgence, registering an impressive 8.5% increase over the past week, and is now nearing the $64,000 mark. This upward momentum has sparked optimism among crypto enthusiasts, who are eyeing a potential 171% increase in Bitcoin’s value by the end of the fourth quarter.
Will Bitcoin Hit $172,800 This Year?
The recent decision by the Federal Reserve to cut interest rates by 50 basis points could serve as a catalyst for Bitcoin’s performance in late 2024. Although Bitcoin has been confined to a range between $50,000 and $70,000 since the halving, the Fed’s liquidity injection might spur dramatic price movement in the fourth quarter.
Well-known crypto analyst Ali Martinez points to Bitcoin’s historical performance during previous halvings, noting remarkable gains in both 2016 and 2020, with increases of 61% and over 171%, respectively. If Bitcoin manages to replicate these trends, it could potentially reach prices between $100,000 and $172,000.
What Factors Are Driving Bitcoin’s Price?
The potential for a significant Bitcoin price breakout hinges on several factors. These include the notable increase in stablecoin issuance and rising futures leverage. For Bitcoin to achieve this breakout, it needs to surpass the $65,000 threshold, with current trading figures at $63,549.
Additionally, the bankrupt FTX exchange is set to disburse $16 billion to creditors, which analysts predict could re-enter the crypto markets, increasing volatility.
As Bitcoin continues to ascend, experts anticipate an upcoming altcoin season, with Ethereum already showcasing a 16% rise last week. However, opinions vary regarding Ethereum’s future, especially with heightened whale activity. Meanwhile, spot Bitcoin ETFs have gained traction, with a notable $397 million inflow last week, spearheaded by Fidelity’s FBTC.
Investors remain intrigued by Bitcoin’s potential trajectory in the fourth quarter. Historical data from previous halvings indicates a possibility for significant gains, yet the influence of broader market conditions and economic shifts can introduce complexities. Investors should remain vigilant about risks and market fluctuations when assessing Bitcoin’s prospects.