Bitcoin’s value tipped to skyrocket past $75,000 in 2024
Cryptocurrency markets have taken a battering in recent times, but some are predicting bitcoin could be headed for another golden era.
Experts are predicting that bitcoin’s value could surge well above $US50,000 ($A75,000) in value as the number of new coins are halved next year.
After cryptocurrency markets took a beating last year, the coin’s value has fallen to just around $US30,000 ($A45,000) but it has been making a comeback, soaring by 67 per cent since the end of last year.
It also leapt by nearly 15 per cent as banking chaos gripped the global financial system when a number of US banks collapsed.
Now a process known as halving, which will cut the number of tokens available, could see the value of bitcoin skyrocket by at least 81 per cent, according to Bloomberg Intelligence and Matrixport.
Occurring around every four years, halving is where the reward for mining new blocks is halved – which is part of the process for capping the bitcoin supply to 21 million tokens.
It will take place in April next year and has occurred three times before – seeing bitcoin’s value hit new records each time.
However, interest rate hikes and a US regulatory crackdown on crypto in the wake of the FTX exchange’s spectacular collapse in November last year could hamper the increase.
“If the collapse of FTX was indeed the bottom of this cycle, then history would suggest that we still have approximately 350 days of ‘accumulation’ before witnessing the characteristic post-halving breakout price action,” Jacob Joseph, an analyst at CCData, told Bloomberg.
Bitcoin’s record price sits at $US69,000 ($A103,000), which was achieved in November 2021, and some analysts have predicted it could hit just over $US65,000 ($A97,000) by April 2024 – more than double the current price.
“Bitcoin may once again reach a new all-time high in the future, however, it is unlikely to see the same growth as previous cycles due to increased market size and competition from other digital assets,” Mr Joseph said.
But the popular crypto suffered a recent low of just over $US19,700 ($A29,553) back in March.
The price of bitcoin also took a hit after a US regulator, the Commodity Futures Trading Commission (CFTC), sued Canadian businessman Changpeng ‘CZ’ Zhao and the company he co-founded, Binance.
The regulator alleges Binance had attempted to “flout and actively attempt [to] circumvent” CFTC requirements.
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