Bitcoin Could Reach $160,000 in 2024 Bull Market, Says CryptoQuant

According to CoinDesk, a combination of catalysts and historical behavior may propel bitcoin (BTC) to as high as $160,000 in a widely anticipated bull market that analysts predict could begin in 2024. CryptoQuant, an on-chain analysis firm, stated in a Wednesday report that expected demand for bitcoin from several spot exchange-traded funds (ETF) in the U.S., the upcoming halving, and growth in broader stock markets due to rate cuts could push bitcoin prices to at least $50,000 in the short term. Analysts at CryptoQuant believe that the positive year for bitcoin and crypto markets in 2024 will be primarily driven by factors such as market valuation cycles, network activity, the bitcoin halving, macroeconomic perspectives, bitcoin spot ETF approval, and growing stablecoin liquidity. Bitcoin has historically rallied after its halving event, which automatically reduces the supply of new coins in the open market, and traders are likely pricing in the event scheduled for April 2024. Additionally, major traditional finance players like BlackRock and VanEck are in talks with the U.S. Securities and Exchange Commission (SEC) for spot bitcoin ETFs, with ongoing discussions indicating positive progress. Prominent bitcoin holders, such as Michael Saylor, claim that this development could be one of the biggest on Wall Street in 30 years. Traders also anticipate the U.S. Federal Reserve to lower interest rates in 2024 as inflation continues to decline, which has historically encouraged large bets on riskier assets like technology stocks and cryptocurrencies. However, CryptoQuant warns that prices could still drop in the short term as recent investors hold large unrealized gains, which have historically preceded price corrections. Bitcoin has rallied over 180% on a year-to-date basis, potentially creating a bearish scenario ahead of the New Year.