Bitcoin ETF Approval and Predictions for Bitcoin Price in 2024: Cryptocurrency Bulls Anticipate Surge Above $100,000

The U.S. Securities and Exchange Commission (SEC) made a significant move in the world of cryptocurrencies by approving the first-ever U.S. spot bitcoin exchange-traded fund (ETF) on January 10, 2024. This decision has sparked excitement among cryptocurrency investors, who believe that bitcoin’s price could surge to new heights in 2024.

Several investors spoke with CNBC and shared their predictions for bitcoin’s price, with all-time high price predictions ranging from $100,000 to $250,000. Although bitcoin’s price hasn’t moved substantially since the approval, investors anticipate significant gains later in the year as the effects of the ETF and the upcoming technical event known as the “halving” become more apparent.

Anthony Scaramucci, founder of SkyBridge Capital, is one of the investors who sees bitcoin reaching new heights. He expects the cryptocurrency to hit $100,000 over the next year. Scaramucci compared the ETF approval to the 2004 green lighting of the first spot gold ETF, which took years to translate into major price gains but eventually led to significant increases in gold’s value.

Many crypto investors view bitcoin as “digital gold,” and some believe it could eventually surpass gold’s market capitalization, implying a 10x price increase over the next decade. However, it’s important to note that past price performance has shown bitcoin trading in correlation with stocks, particularly the tech-heavy Nasdaq, rather than gold.

The approval of a bitcoin ETF is just one of the factors expected to drive upward movements in bitcoin’s price. The upcoming halving event, which occurs every four years and cuts miners’ rewards in half, is another significant factor. In previous price cycles, the halving preceded a rise in the price of bitcoin.

Tim Draper, founder of Draper Associates, believes that bitcoin’s price could reach $250,000 by July 2024, driven by increased adoption among mainstream investors and the halving event. However, it’s important to remember that Draper has been wrong about bitcoin’s price trajectory in the past.

The approval of a bitcoin ETF marks a significant milestone for the cryptocurrency industry, which has faced distrust and regulatory challenges in recent years. The collapse of FTX, a once $32 billion crypto exchange, and the guilty plea of Binance CEO Changpeng Zhao have left a lasting impact on the industry. However, many executives see this as an opportunity to move forward and draw a line under bad behavior in the industry.

In conclusion, the approval of the first-ever U.S. spot bitcoin ETF has sparked excitement among cryptocurrency investors, who anticipate significant price gains in 2024. Factors such as increased adoption among mainstream investors, the upcoming halving event, and the ETF itself are expected to drive upward movements in bitcoin’s price. However, it’s important to remember that past performance is not always indicative of future results, and the cryptocurrency market is subject to various risks and uncertainties.