The Bitcoin bull is back, it seems. Bitcoin (BTC), the most popular crypto in the world, is currently trading at just under $46,000. Bitcoin’s market cap is almost $900 billion. This is below its all-time high, which was in late 2021, when Bitcoin traded around $65,000. BTC may be making a run to beat its prior all-time high, and several bulls have called for Bitcoin to top $100,000 in 2024 (this has been predicted in previous years).
What’s driving it higher? Most analysts point to the rising probability of a Bitcoin ETF, which will help promote the asset to a legion of retail investors who are more comfortable trading in their traditional brokerage account as opposed to creating an account with Coinbase or someone else. The fact that Bitcoin is limited in quantity by default certainly helps – this scarcity – combined with geopolitical concerns, compels some investors to mitigate risk by diversifying into digital assets.
Alex Adelman, CEO and co-founder of Lolli, a Bitcoin rewards App, predicted the Bitcoin rally will persist in the new year:
“Investors are looking to imminent growth drivers like Bitcoin ETF approvals and lower interest rates in 2024 as positive indicators that Bitcoin will maintain its strength in the markets. Ongoing institutional demand, with JP Morgan and Jane Street marked as participants in BlackRock’s recent ETF amendment, has only further intensified interest in Bitcoin. Bitcoin has maintained notable stability above $40,000 after almost doubling in price in the second half of 2023. Bitcoin’s ability to hold its position above the $40,000 mark suggests sustained confidence among investors and a foundation for further upward momentum.”