What will Bitcoin and the digital currency market look like in 2024?

The cryptocurrency recovery is one of the breakout stories of 2023, especially after the market turmoil of 2022.

Similarly, derivatives exchange Bitget predicts Bitcoin could hit $100,000, amid other predictions pointing towards even higher peaks.

Meanwhile, some people see Bitcoin as a kind of “safe haven” for investing in times of geopolitical conflict. Cryptocurrency financial services company Matrixport predicts that Bitcoin will reach $63,140 by April 2024 and $125,000 by the end of next year. The company's report said that the macro environment is expected to remain a strong driver for cryptocurrencies. Inflation is expected to continue to decline, allowing the FED to begin cutting interest rates. This factor along with rising geopolitical tensions will push bitcoin to new highs in 2024.

In a report last month, Standard Chartered Bank maintained its forecast that Bitcoin prices will reach $100,000 in 2024. Virtual currency financial services company Matrixport last week said bitcoin prices would reach $63,140 in April. /2024 and 125,000 USD by the end of 2024.
Strong recovery

After plummeting in 2022, Bitcoin price has recovered strongly, by the end of 2023 reaching approximately 43,000 USD/Bitcoin (at times reaching nearly 45,000 USD/Bitcoin), an increase of 2.5 times compared to the end of the year. 2022.

From the beginning of the year to the end of 2023, Bitcoin has increased by 164% and is trading above the threshold of 40,000 USD/Bitcoin. The currency has posted gains that outpace traditional assets, including gold (up 10%) and the S&P 500 composite stock index (up 20%).

According to data from electronic trading site CoinGecko, Bitcoin also increased its market share from 38% to more than 50% in the global cryptocurrency market. Also in 2023, the total capitalization of the entire cryptocurrency market increased from 871 billion USD at the end of 2022 to 1,700 billion USD.

Kelvin Koh, co-founder and managing partner at investment firm Spartan Group, said that despite the “aftershocks” of 2022, 2023 is looking surprisingly good for Bitcoin. This electronic currency is also on the verge of moving into a new cycle.

Meanwhile, Mr. Kyla Curley, cryptocurrency expert and partner at global consulting firm StoneTurn said: "2023 is the year of recovery for the cryptocurrency market."

According to analysts, a key component contributing to that resilience is the way US authorities, especially the Department of Justice, have flexed their enforcement mechanisms towards cryptocurrencies, even when not There are clear regulations. Like the rest of the financial world, cryptocurrencies are buoyed by an improving macroeconomic picture with cooling inflation, a growing economy and the long-awaited end to the interest rate hike cycle of the US Federal Reserve (FED).

High expectations for Bitcoin ETF

Experts say that most of Bitcoin's increase came at the end of the year, when information about the possibility of the US allowing the establishment of a spot Bitcoin ETF and hopes for looser monetary policy added fuel. quality for investors.

“Most of Bitcoin's 55% increase in the fourth quarter of 2023 was due to bets that the US would approve the trading of spot Bitcoin ETFs. This has attracted inflows from retail as well as institutional investors, as the market prospect of easy access to digital assets on a regulated stock exchange becomes more viable. ”, experts said.


Many experts see loose monetary policy as a factor supporting Bitcoin - an asset considered a risky investment channel. Meanwhile, there are also those who see Bitcoin as a "safe haven" when geopolitical instability increases.

According to Bloomberg ETF analysis, the possibility of approving a spot Bitcoin ETF before January 10, which is the US Securities and Exchange Commission's (SEC) statutory deadline to make a decision on some application is 90%.

According to Michael Saylor, co-founder and executive chairman at MicroStrategy, the approval of a Bitcoin spot ETF could be the biggest development on Wall Street in three decades.

Bitcoin price forecasts in 2024

Many commentators believe that the loosening of monetary policy by central banks in 2024 will significantly support the price of Bitcoin, which is considered a risky asset.

Markus Thielen, head of research at Matrixport, shared insights on expectations for Bitcoin spot exchange-traded fund approval in January 2024 and emphasized that Bitcoin's value could increase exceed $50,000 by the end of the month.