2024 started with a significant boost for cryptocurrencies like Bitcoin It is Ethereum, sparking excitement among crypto enthusiasts. As of June 6, 2024, BTC is trading at $70,996, boasting a market capitalization of $1.40 trillion, representing a 0.33% increase in the last 24 hours, hovering around the $ $70,000 and increasing 4.58% over the previous seven days.

BTC, the leading cryptocurrency, has gone through a tumultuous period, losing approximately 65% ​​of its market value over the past year. Crypto enthusiasts were surprised by unforeseen events such as the fall of Terra Luna, the decline of FTX, macroeconomic factors, and Binance’s legal issues. However, the crypto market showed a notable recovery towards the end of the year, with BTC showing promising growth.

Bitcoin has reached impressive heights, surpassing its all-time high of $69,170 on March 8, 2024, reaching $70,083. Subsequently, on March 14, 2024, BTC surpassed its previous peak again, reaching $73,750. This increase boosted its market capitalization to $1.44 trillion, contributing to the global crypto market capitalization of $2.77 trillion, reflecting exceptional performance.

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Bitcoin’s recovery journey

After breaching the psychological threshold of the $31,000 mark, Bitcoin began exhibiting a downtrend and traded below $30,000 levels for most of last year. However, it showed a notable recovery in the last months of the year.

The world’s largest cryptocurrency, BTC, which was on a recovery trajectory, increased by about 164.96% in one year. As of June 6, 2024, it is currently trading at $70,982, with a market capitalization of $1.40 trillion and a global cryptocurrency market capitalization of $2.64 trillion.

Cryptocurrency experts believed that if BTC maintained its $30,000 level, it could likely recover from there. Looking at the current scenario, Bitcoin surpassed its all-time high in March but witnessed a downtrend thereafter.

In April 2023, the leading cryptocurrency Bitcoin touched the key resistance of the $30,000 level for the first time since June 10, 2022, and then began to fall below $26,000. It increased significantly to $45,203 after May 2022. Crypto experts believe that if Bitcoin maintains the $45,000 level and beyond, it could reach $60,000 by the end of 2024. In the first three months of the year, BTC has already reached the level of $73,750 and set a new record for an all-time high.

Although the future of Bitcoin is unknown, retail investors should be very cautious about Bitcoin’s every move, as it has been tumultuous before. Furthermore, India’s stance on cryptocurrencies remains firm, with the government bringing all cryptocurrency-related transactions under the ambit of the Money Laundering Act. In a specific newspaper notificationIndia’s Union Ministry of Finance declared that all transactions related to digital assets or virtual currency would fall under the Prevention of Money Laundering Act (PMLA).

The new development may seem detrimental to the cryptocurrency community in India. On the ground, however, the measure was praised by the industry in general as a step towards regulating this space. In the absence of regulators, enforcement agencies will immediately appeal any discrepancies.

Spot Bitcoin ETFs have been a tremendous factor in the growth of Bitcoin. After the SEC approved ETFs in the US, retail investors showed great interest, causing Bitcoin to surpass its all-time high.

One of the other reasons why crypto experts were hopeful about Bitcoin is that this year, 2024, was the year of the Bitcoin halving event. Bitcoin’s halving event happens every four years, during which BTC rewards for its miners are reduced by 50% (miner payout will be reduced to 3,125 BTC). This event is usually positive for the price of Bitcoin as it helps contract supply.

Historically, the halving has been seen as an excellent signal to boost the price of Bitcoin. So far, this year’s halving, which took place on April 20, 2024, has not caused BTC to rise, as experts predicted.

Bitcoin Halving History

The table above shows that previous Bitcoin halving events have established long-term bullish drivers for the Bitcoin price. Bitcoin’s halving event is related to its deflationary tendency and the crushing of its supply, which helps the price of Bitcoin to rise further. Since BTC is a decentralized cryptocurrency, no central bank or government can print it, and therefore the total supply of Bitcoin is limited.

Furthermore, “Bitcoin Whales”, referring to large investors, started accumulating Bitcoin again. According to data from on-chain aggregator Santiment, these large Bitcoin whales, with 1,000 to 10,000 BTC in their wallets, indicate that investors have been filling their wallets with a substantial amount of Bitcoins. This accumulation could contribute to increasing the price of Bitcoin.

Can Bitcoin reach $100,000 by 2024?

The current year is the year of Bitcoin’s fourth halving. It occurred on April 20, 2024. It forms the basis of Bitcoin’s monetary policy and supports its increasing scarcity by halving the growth rate of Bitcoin’s supply approximately every four years.

At one point, Bitcoin’s supply growth rate exceeded 10%, but has since been reduced to around 1.75%. The BTC halving will continue until all 21 million coins are mined, sometime in the year 2140. Currently, around 19.70 million BTC coins are circulating in the cryptocurrency market.

Rajagopal Menon, vice president of WazirX – a cryptocurrency exchange in India, says that Bitcoin is eyeing a big breakthrough and, if successful, the target will be between $90,000 and $100,000. Breaking free from this level could propel Bitcoin towards $90K-100K, driven by upcoming resistance and support levels within the existing parabola.

Psychologically, the 100k mark represents a significant point of resistance. It is logical for Bitcoin to pause around 90K, potentially rising above 90K but remaining below 100K. This pattern is in line with typical market behavior around these round numbers, says Menon.

He also said that veteran trader Peter Brandt predicts a market top of 150K by the end of 2025. His analysis is based on halving cycles, with the recent halving occurring earlier this year. Historically, halvings occur around the midpoint of the cycle, suggesting a strong bullish phase until the end of 2025. This aligns with the traditional 4-year cycle seen in previous Bitcoin trends.

As of June 6, 2024, BTC is trading at $70,982 with a market capitalization of $1.40 trillion. The halving was completed on April 20, 2024, at block height 840,000.

Note: Numbers are taken from CoinMarketCap.

Can Bitcoin Reach $1,000,000 by 2025?

Bitcoin enthusiasts often make overly optimistic and sometimes unrealistic predictions for their favorite cryptocurrency. After this mini-bull run, numerous discussions took place around Bitcoin, the world’s largest digital currency. Some speculate that the cryptocurrency could reach $10 lakh by 2025.

Himanshu Maradiya, Founder and Chairman of CIFDAQ Blockchain Ecosystem, stated: “While predicting Bitcoin will reach $1,000,000 by 2025 may seem overly optimistic, several factors make such a scenario plausible. The growing adoption of Bitcoin, the approval of the BTC ETF by several countries, the weakening of traditional fiat currencies due to hyperinflation, and the increasing profitability of BTC miners are key factors that could significantly increase its value.”

He also added that Standard Chartered’s recent upward revision of its BTC price forecast to $120,000 by the end of 2024 underscores growing confidence in Bitcoin’s potential. As more investors and institutions turn to Bitcoin as a hedge against inflation, the possibility of reaching unprecedented heights becomes more conceivable. If these sovereign wealth funds start investing in BTC or BTC ETF, the price will undoubtedly increase much faster and there will be no limit to the price escalation due to the quantum of these funds.

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Legacy

More than 1 million investors trust Mudrex for their crypto investments

Security

Mudrex is the Indian government. recognized platform with 100% insured deposits stored in crypto wallets

Rates

Enjoy zero crypto deposit fees and the best rates in the industry.

Multi-award winning broker

Listed in Deloitte Fast 50 Index, 2021 Best Global FX Broker – ForexExpo Dubai October 2021 and more

Best in class for investment offering

Trade over 26,000 assets with no minimum deposit

Customer support

Dedicated 24/7 support and easy to sign up

Please invest carefully, your capital is at risk

Conclusion

Among the countless predictions about Bitcoin, the bottom line is that it has suffered several crashes and emerged stronger than before. Its resilient nature inspires a sense of belief in crypto enthusiasts who see value in investing in decentralized currencies.

Only time can tell whether Bitcoin rises higher or faces challenges, and Bitcoin trading must be done with full awareness; Your investment may yield a return that differs from the expected return.

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