Bitcoin’s path to $125,000 in 2024

With the much-anticipated Bitcoin halving in four months, the world's largest crypto-asset is seeing a strong rally fueled by expectations of growing institutional demand.

On December 1, Bitcoin briefly surpassed $38.8K, a level not seen since May 2022. Although it quickly fell below $38.3k, Matrixport's report predicts Bitcoin will halve to $125,000 by the end of 2024, drawing on historical trends. events, and macroeconomic indicators.

Incentives for the Bitcoin 2024 Bull Run

According to Matrixport analysts, the current cycle is poised for another three-year bull market, with 2023 already showing promising signs of growth of over 123%.

The report emphasized the positive correlation between Bitcoin halving events and dramatic market conditions.

Historical data shows that the years in which Bitcoin mining rewards have been halved have generally been very numerous. For example, there is an increase of 186% in 2012, 126% in 2016, and almost 300% in 2020.

Matrixport notes that the tendency of miners to hoard bitcoins before each halving, combined with the ensuing scarcity, can drive the price up roughly 200%.

Additionally, he reiterated his prediction that Bitcoin will reach $63,140 by April 2024.

According to the popular digital asset platform inflation model, the macroeconomic environment will continue to favor crypto.

Anticipating a decline in inflation, Matrixport believes the Federal Reserve is lowering interest rates to maintain economic stability. This “healthy” monetary policy, combined with geopolitical trends, is seen as a powerful catalyst that could propel the crypto-asset to new heights in 2024.

Bitcoin $120,000 forecast

Matrixport's forecast is in line with the forecast of leading British banking institution Standard Chartered.

In July, Standard Chartered predicted that the price of Bitcoin would reach $50,000 by the end of the year and rise to $120,000 by the end of 2024.

The banking institution does not always express such expectations. It is mostly known as the opposite view. In December 2022, Eric Robertson, global head of research at Standard Chartered, suggested that Bitcoin could drop to $5,000 in 2023, especially after the FTX crash. Therefore, the position of bully has a special meaning in the context of the opposite historical position of the institution.