Zach Pandl, the research director at Grayscale, stated that investor interest in BTC is expected to continue, particularly under the circumstances of ongoing high spending and more aggressive interest rate policies by the U.S. government.
"We expect that persistent inflation and unsustainable budget deficits will contribute to ongoing demand for value assets like Bitcoin," Pandl told Cointelegraph.
Predicting the future value of BTC remains challenging due to several variables, but Jupiter Zheng, a partner at HashKey Capital's liquidity fund, sees significant growth potential, indicating that Bitcoin could reach $200,000 by the end of this year.
"By the end of 2024, the low estimate is $100,000, the medium estimate is $140,000, and the high estimate is $200,000," Zheng explained in an interview with Cointelegraph.
The positive impact of ETFs on the cryptocurrency market has made crypto investments more accessible and appealing to a broader audience. Over time, the price behavior of BTC is expected to start reflecting that of traditional assets like stocks and gold. He added that this might lead to more stable growth and integration into mainstream investment portfolios.
Bullish Reasons for BTC
Prominent venture capitalist Tim Draper predicts that BTC's value will double by 2024 due to the inflow of funds from ETFs and the effects of BTC halving.
During Paris Blockchain Week, Draper spoke optimistically about Bitcoin's trajectory to Cointelegraph, echoing his earlier predictions and suggesting that, given the positive signs he has observed in the market, Bitcoin could rise to $250,000 by the end of the year.
The launch of spot BTC ETFs in the U.S. has significantly revived interest and capital investment in BTC. Draper added that these investment products have paved a new path for investors curious about Bitcoin, who might be intimidated by the prospect of self-custodying BTC and using it as a tool to hedge against the devaluation of fiat currencies.
Even in the Worst Case, It's Not Too Late to Buy Bitcoin
While historical halving events offer some insight, the current situation presents a new scenario where demand fluctuations, driven by ETFs, could lead to greater price volatility for cryptocurrencies.
BTC's recent volatility indicates that the market is adapting to the new supply-demand dynamics, especially with the global rollout of spot ETFs, which could significantly increase BTC's demand over the coming months and potentially drive up its price.
On the other hand, these investments could lead to greater volatility as investors can move funds in and out more easily than with self-custody.
"Our current model price is $90,000. The more bullish scenario is $125,000, and the bearish scenario is $50,000," Zheng said.
He added, "The key factors are the net inflows of BTC spot ETFs (as a measure of traditional finance's adoption process), the Fed's potential rate cuts later this year, and the 2024 BTC halving causing further supply-demand imbalances."
While it's difficult to predict the exact value of BTC by the end of 2024, experts agree that its price is likely to follow an upward trajectory throughout the year. These forecasts are based on high inflows into Bitcoin ETFs, the asset quality as a store of value, and the current macroeconomic conditions.
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Bitcoinist
Cointelegraph
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