Why Is Bitcoin Rising Again? (2024)

FAQs

Why is Bitcoin rising again? ›

Bitcoin's price rise today follows massive liquidations of short positions in the crypto futures market. Notably, the broader market witnessed over $114.40 million in short liquidations in the past 24 hours, compared to $96.96 million in long liquidations.

The recent price hike was propelled by a bullish Fed minute published on Aug. 21, which hints at a likely 25 basis point cut in US interest rates. The document reiterated Jerome Powell's remarks in late July about a likely rate cut if US market data keeps coming as expected.

If this pattern continues into 2030, the price could peak around 2029 or 2030, potentially aligning with Wood's price prediction. If Wood is correct and Bitcoin reaches $3.8 million, a $100 investment in Bitcoin today would be worth $5,510 in 2030. This translates to a compounded annual growth rate (CAGR) of over 95%.

Unfortunately, it's also incredibly volatile. For that reason, while current market conditions are favorable for anyone considering buying Bitcoin, it is an asset you should purchase only at your own risk. Because while Bitcoin may have the potential for significant returns, you may also lose most of your investment.

While the future of Bitcoin is unknown, retail investors must be very cautious about every move of Bitcoin, as it has witnessed tumultuous before. Moreover, India's stance on cryptocurrencies continues to be firm, with the government bringing all crypto-related transactions under the ambit of the Money Laundering Act.

Crypto Markets' Spectacular Performance

This surge reflects renewed confidence and interest in the cryptocurrency market, attracting attention from investors worldwide. The rapid ascent of Bitcoin underscores the volatile nature of the crypto market and highlights the potential for both substantial gains and losses.

Source: CoinGecko. Different currencies have different appeals, but the popularity of cryptocurrencies largely stems from their decentralized nature: They can be transferred relatively quickly and anonymously, even across borders, without the need for a bank that could block the transaction or charge a fee.

A bitcoin has value because it can be exchanged for and used in place of fiat currency, but it maintains a high exchange rate primarily because it is in demand by investors interested in the possibility of returns. Of course, many other factors influence Bitcoin's value.

If Wood is correct and Bitcoin does reach $3.8 million by 2030, an investment of $1,000 would be worth over $60,000. This would result in a compound annual growth rate (CAGR) of over 100%.

Key Points. Bitcoin Price Prediction: Bernstein forecasts Bitcoin could hit $200,000 by 2025, up from a previous target of $150,000. ETF Impact: Strong inflows into spot U.S. Bitcoin ETFs drive this optimistic outlook.

How high can Bitcoin realistically go? ›

We predict that Bitcoin will hold an average price of $60,000 in 2024, thanks to the Halving event, and settle more in 2025 with an average of $65,000. In 2026, we see Bitcoin trading as high as $90,000 by the end of the year. By 2030, we predict that Bitcoin could reach a high of $160,000.

Edelman stresses that bitcoin is highly speculative, with a history of volatility, but he believes its potential makes it appropriate for a long-term portfolio, provided that investors limit it to 1% to 5%. "The risks are high, and if it fails, a low single-digit allocation won't cause material harm," he said.

The lack of key transaction policies is a major drawback of cryptocurrencies. The no refund or cancellation policy can be considered the default stance for transactions wrongly made across crypto wallets, and each crypto stock exchange or app has its own rules.

Is investing in Bitcoin safe? It's important to remember that like any other investment, Bitcoin has risks. For example, BTC is highly volatile and has seen dramatic rises and falls in price throughout its history. Still, as long as you are willing to tolerate the risk of a possible downturn, BTC is generally safe!

Analysts expect: Bitcoin ETFs to represent approximately 7% of Bitcoin in circulation by 2025 and about 15% by 2033. They project that spot Bitcoin ETFs will reach around $190 billion in assets under management (AuM) by the market peak in 2025 and $3 trillion by 2033.

Bitcoin price prediction August 2024

The next major support level for Bitcoin is around $48,000 - $52,000. If the price were to drop further, traders might expect this support to hold. However, if this support is broken, the next support for Bitcoin will be around $42,000.

Additionally, increased market liquidity can drive investment, further supporting Bitcoin's price surge. Thakral believes that Bitcoin reaching $100,000 in 2024 is more feasible now than ever before due to several key factors.

In addition to Cathie Wood of Ark Invest, who famously predicted a $1 million price in 2022, there's now Jack Dorsey, co-founder and former CEO of Twitter. In a recent interview, Dorsey suggested that Bitcoin is going to "at least a million" by 2030.