Bitcoin ($BTC) is expected to hit $120,000 soon, with many experts predicting this milestone by the end of 2024 or early 2025. This optimistic outlook is driven by several factors:
Motivation after Halving: The Bitcoin halving in April 2024 has significantly reduced the rate of new BTC entering the market, increasing scarcity. History shows that halving events lead to significant price increases within 12-18 months as supply constraints meet rising demand.
Institutional acceptance: The approval of spot Bitcoin ETFs, such as the anticipated launch by BlackRock, is attracting institutional investors. This could lead to billions of dollars flowing into the market, pushing prices higher. Additionally, sovereign entities like Bhutan and large corporations like MicroStrategy have significantly increased their holdings, signaling long-term confidence.
Favorable winds from macroeconomics: The Federal Reserve is expected to lower interest rates in 2024, creating a favorable environment for risk assets, including Bitcoin. Furthermore, the adoption of crypto-friendly policies in major markets, such as the U.S., is bolstering investor sentiment.
Market liquidity: The influx of stablecoins into exchanges like Binance and Coinbase has reached record levels, indicating investors' willingness to buy Bitcoin at higher prices. This liquidity supports BTC's ability to overcome psychological barriers like $100,000.
Technical analysis: Analysts like Peter Brandt and Standard Chartered predict BTC will reach between $120,000 and $125,000 by the end of 2024, supported by historical patterns and the Stock-to-Flow model. The latter estimates Bitcoin's fair value to be $184,000 by year-end.
Despite this optimism, external factors such as market correction potential or regulatory hurdles could slow progress. However, most indicators suggest that Bitcoin is well-positioned to reach $120,000 within the next 6–12 months.
