Bitcoin will peak this year, investors expect. New research from Aspen Digital adds to the overall market bullishness.
Investors are betting that the price of Bitcoin will break $100,000 by the end of 2024. Report From Aspen Digital.
The wealthtech firm's report is based on a survey of more than 80 family offices, high-net-worth individuals and asset managers in Asia in the second half of this year.
Among them, 31% of respondents predict that the price of Bitcoin will rise above $100,000 before the start of 2025 – and they are looking to invest in it.
“Despite recent market volatility, the private wealth sector is increasingly interested in digital assets and exploring options for allocation,” writes Aspen Digital.
The report is the latest sign of renewed optimism in the cryptosphere, with Bitcoin pumping as high as $68,000 this week. Many market watchers have predicted that the world's largest cryptocurrency will hit a new all-time high within the next few weeks.
So what drives the price?
Economic system
According to people Aspen Digital spoke to, macroeconomic factors such as the Federal Reserve cutting interest rates are a key reason behind the bullish Bitcoin outlook.
Low interest rates mean investors have more money to spend, which encourages them to bet on riskier assets like cryptocurrencies.
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halving
According to a report by Aspen Digital, the latest halving happened in April and helped kick off a new bull market.
The halving is a predetermined event that occurs every fourth year and reduces the amount of rewards Bitcoin miners receive for maintaining the blockchain.
This usually means that less new Bitcoin will enter the market. Low supply but high demand usually translates into higher prices.
Organizational adoption
Big money from institutions is also playing a big role in Bitcoin's price.
In January, the US Securities and Exchange Commission approved 11 spot bitcoin exchange-traded funds.
Bitcoin ETFs run by Wall Street giants like BlackRock have “brought billions in fresh capital to the digital asset space,” writes Aspen Digital.
These ETFs make it easy for organizations to gain exposure to Bitcoin without the complexity of managing wallets or private keys.
Spot's potential approval ETFs across countries Japan, Singapore and South Korea are expected to further increase institutional interest.
US elections
Investors speaking to Aspen Digital cite the upcoming US election as a driver for Bitcoin's rally.
They are not alone. Bernstein analysts predict that Bitcoin could rise to $90,000 immediately after Donald Trump wins, but warn that it could fall to $40,000 if Kamala Harris wins.
Crypto market movers
Bitcoin rose 2.4% to $68,626 in the last 24 hours. Ethereum traded up 1.5% at $2,651.
What are we studying?
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Kyle Baird is News Weekend Editor. Got a tip? Email at [email protected].
Related TopicsBITCOINBITCOIN HALVINGBITCOIN ETF
