Bitcoin is the most popular and valuable cryptocurrency in the world, with a market capitalization of more than $800 billion. Its price has risen more than 150% in 2023, reaching new historical highs above $68,000 in November. However, bitcoin is also known for its high volatility and regulatory challenges, which begs the question: What awaits bitcoin in 2024?
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Factors driving the price of bitcoin $BTC
The price of bitcoin is determined by supply and demand in the market, as well as other external factors that can influence investor perception and behavior. Some of the factors that have driven the price of bitcoin in 2023 are:
- The expectation of approval of a bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC), which could attract more institutional and retail investors to the cryptocurrency market.
- The adoption of bitcoin as legal tender in El Salvador, which was the first country to do so in September 2023, and the interest of other countries in following suit, such as Brazil, Panama and Ukraine.
- The innovation and development of the bitcoin network, which has improved its scalability, security and energy efficiency, thanks to the implementation of solutions such as the Lightning network, the Taproot protocol and green mining.
- The scarcity of bitcoin, which has a limited supply of 21 million units, of which more than 19 million have already been mined. Every four years, the reward per mined block is cut in half, reducing inflation and increasing demand. The next halving event is expected in 2024.
Challenges and risks for bitcoin in 2024 $ETH $SOL
he bitcoin price also faces several challenges and risks that could slow its growth or cause sudden drops in 2024. Some of these are:
- Regulatory uncertainty, which continues to be one of the main obstacles to the development of the cryptocurrency market. The SEC and other global regulators have stepped up their actions against cryptocurrency exchanges and their executives, such as FTX and Binance, for alleged violations of securities, commodities and money laundering regulations.
- Competition from other cryptocurrencies, which offer different or superior features and functionalities to bitcoin, such as greater speed, lower cost, greater privacy or greater utility. Some of the most popular and promising cryptocurrencies are Ethereum, Solana, Cardano, Polkadot, and Avalanche.
- Cyber attacks, which can compromise the security and integrity of the bitcoin network, as well as the platforms and devices that store and transfer user funds. Hackers can steal, manipulate or destroy data, causing financial and trust losses.
- Market volatility, which can cause strong fluctuations in the price of bitcoin, both up and down, due to unpredictable or irrational factors, such as panic, euphoria, rumors, fake news or manipulation.
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Bitcoin price forecast for #2024
Since the price of bitcoin depends on multiple factors, it is difficult to make an accurate and unanimous prediction about its future evolution. However, you can consult some sources that offer forecasts based on mathematical models, technical analysis or opinion polls. Some of these sources are:
- #CoinDesk which publishes a monthly report on the cryptocurrency market, with forecasts from experts and analysts on the price of bitcoin and other relevant factors.
- #Binance which offers a price prediction tool for different cryptocurrencies, based on a fixed interest rate and user consensus.
- #TradingBeasts which provides price forecasts for different cryptocurrencies, based on a machine learning algorithm that takes into account historical performance and market trends.
- #WalletInvestor that generates price forecasts for different cryptocurrencies, using an artificial intelligence system that analyzes price patterns and technical indicators.
According to these sources, the price of bitcoin could vary between 30,000 and 100,000 dollars at the end of 2024, with an average of about 60,000 dollars. These figures are only estimates and do not guarantee any results, so investors are advised to do their own research and assume the risks inherent in the cryptocurrency market.