Fundstrat Predicts Bitcoin Will Hit $180,000 in 2024, But What’s the Catalyst?

Bitcoin has been on the lips of many crypto investors and news outlets over the past few months as major investment firms such as BlackRock are considering launching a spot bitcoin ETF. The price of the world’s largest digital currency has also seen an increase in the last few months, reaching around $30,000 for almost a month.

Now, Fundstrat, a New York City-based equity research firm, has made a bold bullish prediction on the price of BTC. According to the investment research firm, the price of the cryptocurrency could reach $180,000 before the April 2024 halving.

Fundstrat predicts bullish bitcoin

on a monday Comment The company told its customers that the price of BTC could be on the verge of skyrocketing next year. A large part of his prediction revolved around the potential for spot bitcoin ETFs to be traded by investment firms led by BlackRock, the world’s largest asset manager with more than $9 trillion in assets. If approved, the Spot Bitcoin ETF could open the door for mainstream investors and institutions to pour billions of dollars into bitcoin.

The investment research firm said that the current daily demand for BTC at $25 million could increase to $100 million with the Spot Bitcoin ETF. This would put bitcoin ETFs in direct competition with the precious metals ETF market, which currently has a total market capitalization of around $230 billion.

“This (Bitcoin ETF launch) will bring the daily demand to $125 million, while the daily supply is only $25 million. The underlying equilibrium price would need to increase so that daily supply matches daily demand,” Fundstrat said in the research note.

Sean Farrell, head of digital asset strategy at Fundstrat, also said: “We anticipate that[the bitcoin ETF]will attract new investors and create increased demand for bitcoin.”

BTC price recovers slightly to $29,227 | Source: BTCUSD on Tradingview.com 

Upcoming BTC Halving

Another thing mentioned in the research note is the impact of the upcoming bitcoin halving. Held approximately once every four years, a bitcoin halving halves the reward paid to miners for mining a block on the blockchain. Previous halvings have been known to reduce inflationary pressure on BTC, leading to a steady rise in its price.

According to Fundstrat, reducing the daily mining incentive from the current $12 million to $6 million would increase the price of bitcoin significantly enough to achieve equilibrium between buyers and sellers. The effect of the halving is then expected to increase with spot bitcoin ETFs driving higher prices.

Incidentally, Fundstrat is not the only company that is expecting BTC to reach $100,000 in the near future. In April, Standard Chartered predicted that a single unit of bitcoin would exceed $100,000 by the end of 2024.

Featured Image from iStock, Chart from Tradingview.com