Bitcoin to reach $80,000? Analysts say three major factors will make 2024 a crucial breakthrough year for cryptocurrencies

Zhitong App has learned that according to analysts at AllianceBernstein, Bitcoin is expected to reach its all-time high in 2024, possibly reaching around $80,000 by the end of the year. AllianceBernstein analysts Gautam Chhugani and Mahika Sapra believe that the potential for Bitcoin price increase this year is mainly driven by three factors: the expected approval of a Bitcoin exchange-traded fund (ETF) by US regulatory agencies, the upcoming "halving event" in April, and the growing demand from corporations. "We expect 2024 to be a significant breakthrough year for cryptocurrencies," the analysts wrote in their report. Bitcoin rose by over 150% in 2023 and started 2024 with a surge, reaching a high of $45,913 on Tuesday, the highest since April 2022, according to CoinDesk data. The cryptocurrency is still more than 30% below its all-time high of around $68,990 set in 2021. Industry participants in the cryptocurrency sector expect the US Securities and Exchange Commission (SEC) to approve the applications for spot Bitcoin ETFs submitted by ARK Investments and 21Shares by January 10, which is the final deadline for the agency's decision. Industry participants suggest that the SEC may also approve similar products submitted by other asset management companies such as BlackRock (BLK). In their report on Tuesday, AllianceBernstein analysts stated that if spot Bitcoin ETFs are approved, there may be a "relatively short and mild sell-off" as some traders sell their Bitcoin to lock in profits. However, the analysts pointed out that ETFs may gradually attract more institutional funds and drive up the price of Bitcoin. The analysts also noted, "The flow of Bitcoin ETFs may gradually increase, but applicants will strive to gain a leading position in this massive asset accumulation game, strengthen advertising and Bitcoin brand promotion, and generate a snowball effect." They expect that Bitcoin ETFs will see approximately $5 billion in inflows in the first half of 2024 and reach around $10 billion in the second half. "By 2028, about 10% of Bitcoin may be held by ETFs." At the same time, the Bitcoin halving could also provide a boost. According to analysts, historically, the price of Bitcoin usually experiences a significant increase in the months following a halving event. Analysts also predict that exchange-traded funds (ETFs) investing in Ethereum will be approved in June this year. They point out that Ethereum could be the only cryptocurrency, apart from Bitcoin, to have an ETF that allows for direct investment.