- Bitcoin will reach a record high this year, investors think.
- New research from Aspen Digital adds to overall market bullishness.
Investors bet that Bitcoin’s price will crack $100,000 by the end of 2024, according to a new report from Aspen Digital.
The wealthtech firm based the report on a survey of more than 80 family offices, high-net-worth individuals and asset managers in Asia in the second half of the year.
Of those, 31% respondents predicted that Bitcoin’s price will climb above $100,000 before the start of 2025 — and they are looking to invest in it.
“Despite the recent market volatility, the private wealth sector is increasingly interested in digital assets and is exploring options to allocate,” Aspen Digital wrote.
The report is the latest sign of renewed optimism in the cryptosphere, with Bitcoin pumping as high as $68,000 this week. Several market watchers have predicted that the world’s biggest cryptocurrency will reach a new all-time high within the next few weeks.
So what is driving the price?
The economy
Macroeconomic factors like the Federal Reserve cutting interest rates is a key reason behind the bullish Bitcoin outlook, according to the people Aspen Digital spoke with.
Lower interest rates means investors have more money to spend, which encourages them to bet on riskier assets like cryptocurrencies.
The halving
The latest halving occurred in April and helped kick off the new bull market, according to Aspen Digital’s report.
A halving is a preordained event that happens about every fourth year and reduces the amount of rewards Bitcoin miners get for maintaining the blockchain.
It usually means that less new Bitcoin will hit the market. Low supply but high demand usually translates to higher prices.
Institutional adoption
Big money from institutions is also playing a big part in Bitcoin’s price.
In January, the US Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds.
The Bitcoin ETFs run by Wall Street giants like BlackRock have “brought billions of fresh capital to the digital asset space,” Aspen Digital wrote.
These ETFs have made it easier for institutions to gain exposure to Bitcoin without the complexities of managing wallets or private keys.
The potential approval of spot ETFs in countries like Japan, Singapore, and South Korea is expected to further boost institutional interest.
The US election
Investors speaking with Aspen Digital also cited the upcoming US election as a driver of the Bitcoin rally.
They are not alone. Bernstein analysts estimate that Bitcoin could surge as high as $90,000 in the immediate aftermath of a Donald Trump win, but caution that it could fall as low as $40,000 if Kamala Harris wins.
Crypto market movers
- Bitcoin is up 2.4% over the past 24 hours to trade at $68,626.
- Ethereum is up 1.5% to trade at $2,651.
What we are reading
- EigenLayer moves past the drama with $11bn in deposits and a key role in Ethereum — Sreeram Kannan on what comes next — DL News
- The world’s 1st AI bot crypto-millionaire — Milk Road
- Ethereum’s Key Goal for ‘The Surge’ Is 100,000 TPS: Vitalik Buterin — Unchained
- The battle for stablecoin supremacy — Milk Road
- How four whales betting $25m on Trump are skewing Polymarket’s election odds — DL News
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
