Will Bitcoin hit all-time highs again in 2024?

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Bitcoin will hit fresh all-time highs in the coming months – despite a recent sell-off in price, following the news of escalating military and diplomatic tensions between Israel and Iran, the chief executive of a leading financial advisory and fintech said.

“We believe that the negative impact of recent events has now already been factored into Bitcoin’s price, paving the way for positive structural drivers to reassert dominance,” said deVere Group’s CEO Nigel Green.

Building upon this optimistic outlook, he foresees the largest cryptocurrency surpassing its previous record high of $73,800, achieved on March 14.

The convergence of several key factors is expected to fuel this upward trajectory.

“Chief among them is the supply shock resulting from the recent halving event, a mechanism embedded in the crypto’s protocol that reduces the rate at which new Bitcoins are generated,” Green explained.

Scarcity driving price

“With the halving cutting the supply of new Bitcoin issuance to 3.125 bitcoins per block, the scarcity of the digital asset is set to drive up its value,” he noted.

“Also the imminent launch of new Bitcoin exchange-traded funds (ETFs) outside the US, namely in the UK and Hong Kong – the latter of which starts trading next week – is likely to play a pivotal role in bolstering prices.”

“These financial instruments, which garnered substantial interest and institutional investment when they launched in the US earlier this year by some of the world’s largest asset managers, are set to absorb billions of dollars’ worth of Bitcoin, further reducing its available supply and increasing demand.

“The ETFs confirmed Bitcoin’s status within the global financial system.”

Since the first ETFs to track spot Bitcoin were launched in the United States three months ago, they have taken in $12 bln in net inflows.

Bitcoin has gained more than 50% this year. It was trading around $65,000 on Wednesday and 63,400 on Thursday.

“While short-term fluctuations may be inevitable, Bitcoin’s long-term trajectory is upward,” a bullish Green predicted.

“The underlying fundamentals and structural drivers are robust, paving the way for Bitcoin to achieve new price heights in 2024,” he concluded.