Bitcoin Could Reach $100,000 in 2024, Says Blockstream CEO
Blockstream CEO Adam Back believes that Bitcoin could experience a resurgence in 2024, driving its price towards $100,000. Back points out that Bitcoin is currently below the historical price trend line observed during previous mining reward halving events. These events occur every 210,000 blocks and reduce the block reward given to miners. Back suggests that Bitcoin’s current value lags behind widely accepted projections based on previous market cycles and halvings.
The decline in BTC’s price can be attributed to various factors, including the impact of COVID-19, quantitative easing, and wars affecting power prices. These challenges have led to portfolio management strategies that involve selling more liquid assets like Bitcoin.
Market Challenges Subsiding
Looking ahead to 2024, Back believes that many of the macro events negatively affecting Bitcoin’s price have subsided or been resolved. He cites the recent price surge as evidence of this. Back stands by his previous prediction that Bitcoin will reach $100,000 in the next market cycle if not for the aforementioned macro factors.
The “Stock-to-Flow” Model
Back references the “stock-to-flow” model developed by PlanB, which indicates potential upside for Bitcoin in 2024. The model suggests that astute investors historically purchased BTC six months before a halving event and sold during significant price surges in the 18 months following the reward reduction.
Potential Impact of ETF Approvals
Prominent investors and analysts anticipate the approval of several spot Bitcoin exchange-traded fund (ETF) applications by the SEC in early 2024. Back predicts significant institutional investment flowing into BTC-backed products. He emphasizes that certain segments of traditional markets, including major fund managers, are currently restricted from directly investing in assets like Bitcoin. The approval of ETFs would provide them with an avenue to invest, potentially driving up the price.
Hot Take: Bitcoin’s Potential for Growth
Blockstream CEO Adam Back believes that Bitcoin has the potential to reach $100,000 in 2024. He points to the historical trend line observed during previous halving events and the “stock-to-flow” model as indicators of this growth potential. Back also highlights the potential impact of ETF approvals by the SEC, which could attract significant institutional investment into BTC-backed products. With macro events subsiding and market challenges easing, Back remains confident in his earlier prediction. As Bitcoin continues to gain mainstream recognition and adoption, its price may indeed soar to new heights.
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