3 Factors That Could Push Bitcoin Price to $100k

Following the recent cryptocurrency market crash, Bitcoin price is trying to recover, after dropping below $60,000. However, optimism exists among financial giants such as Robert Kiyosaki and Standard Chartered Bank who foresee BTC price reaching $100,000 by the end of 2024. In this article, we delve into reasons behind these bearish sentiment, analyzing factors that might propel Bitcoin to such high levels.

Bitcoin Price Market Performance

Bitcoin price has fluctuated, increasing by 5.47% in the past day, to reach $61,583.24. Even though its 24-hour trading volume is $31.7 billion,  demonstrating a decrease of 21.86%, the leading cryptocurrency according to CoinMarketCap has recorded a market cap of 1.21 trillion.

Factors That Could Push Bitcoin Price to $100,000

Various factors could propel the BTC price to rise to $100,000 as discussed next.

1. Bitcoin ETFs are a Potential Game-changer

Potential surge in demand could arise with spot Bitcoin ETFs, resulting in a potentially volatile scenario for the cryptocurrency. Forecasting the demand for Bitcoin is challenging, with price spikes in the recent months being linked to the launch of ETFs in the United States.

Experts predict that Bitcoin will hit a range of $200,000 to $300,000 over the next two years, then settle around $100,000 to $150,000. With the recently introduced Hong Kong Bitcoin ETFs, there is a positive outlook for a rising trend in the price of BTC, because of growing institutional interest and investments from the US ETF markets.

2. Bitcoin Halving

Historically, Bitcoin halving events have been known to push Bitcoin’s price higher. With the ongoing scarcity of supply and persistent strong demand, it seems more and more probable that Bitcoin could reach $100,000.

Experts predict that the recently ended halving will have a similar effect as previous events. In the year following the three halvings in 2012, 2016, and 2020, bitcoin’s value increased by 8,069%, 284%, and 559% consecutively.

According to Rekt Capital‘s analysis of Bitcoin halving stages, BTC is presently in the Re-Accumulation phase. This shows an extended period of stability or flattening (consolidation) and lateral movement, indicated in red on the charts. This phase may continue for up to 150 days, around five months.

At the moment, many investors may be feeling let down as there have been no significant price changes following the Halving event. Feelings like restlessness, boredom, and frustration may lead some investors to exit their positions prematurely.

After this period of consolidation, Bitcoin may move into a rapid growth phase known as the Parabolic Uptrend. During this phase, there is a transition from lateral movement to a strong upward direction, indicated by the color green in the graphics. During this phase, the price of Bitcoin sees a substantial rise, reaching record highs. Investors are filled with excitement and optimism as the value of Bitcoin rapidly increases, signaling a positive outlook in the market.

3. The Federal Reserve interest rates Decision

The Federal Reserve‘s decision to maintain stable interest rates may have a significant impact on Bitcoin’s price movements, potentially propelling it closer to $100,000. This decision may boost confidence in the market, indicating a promising future for high-risk assets such as Bitcoin. The Federal Reserve’s concerns about inflation could further cement BTC’s reputation as a hedge against inflation and currency devaluation.

Additionally, the Federal Reserve’s cautious approach to shrinking balance sheets may inject more liquidity into the market, driving up prices of assets like Bitcoin. As the coin rebounds, showing signs of a potential price surge, it could spark positive market sentiment. Moreover, as institutional Bitcoin adoption increases, driven by increased investor confidence, it could play a role in pushing Bitcoin price to $100,000.

Conclusion

The possibility of Bitcoin hitting $100,000 is still very close and appealing. Forecasts from industry experts and influential figures offer insight into the possible future direction of Bitcoin’s price. Despite the uncertain path ahead, there is undeniable optimism about Bitcoin’s potential for more growth.