Bitcoin, as the world’s largest cryptocurrency, attracts the attention of many people, from investors, fans, scammers, and even regulators. It plays a significant role, not only as a currency or investment tool, but also as a pioneer of decentralized currencies and the cryptocurrency market. Due to this high interest, various Bitcoin price predictions emerge to understand its development in the coming years.
Bitcoin Price Prediction in 2024
In early 2024, specifically in January, the price of Bitcoin started above $45,000. Then, by mid-March 2024, Bitcoin set a record high at $73,750.07. This increase occurred due to The sustained inflow of institutional money into Bitcoin ETFs.
In April, 2024 a significant event occurred known as Bitcoin Halving. This refers to an event in the Bitcoin network protocol where the reward for mining new blocks is halved, reducing it by 50%. With the reduction in Bitcoin supply in the market, it creates a scarcity effect and is believed to increase the value over time.
So far, Bitcoin has undergone 4 halving cycles starting in 2012. It is predicted that this Bitcoin halving could significantly increase the price multiple times within the next 2-3 months.
The combination of these positive factors fosters optimism for the future of Bitcoin in 2024. Bitcoin price predictions could reach $85,000-100,000. In the worst-case scenario, Bitcoin is predicted to be at $38,000.
Bitcoin Price Prediction in 2025
The Bitcoin price prediction for 2025 is expected to be around $50,000, with the highest price reaching $102,000. Meanwhile, the average price of Bitcoin is projected to be around $65,000 throughout 2025.
There are several factors that can affect the rise of Bitcoin price. First, improvement in the global economy. If the world economy improves alongside a decrease in inflation to 2%, then interest rates may decrease, potentially increasing investment attractiveness.
The second factor is the clarity of regulations surrounding all cryptocurrencies, which could attract new investors and institutional funds worth trillions of dollars. Another factor is the impact of Bitcoin Halving, which typically results in a new all-time high (ATH) after 12-18 months. This will further drive the increase in Bitcoin price in 2025.
Factors Affecting Bitcoin Price
There are several factors that can influence Bitcoin price. The first factor emerges from the crypto market itself. Bitcoin’s role as a reserve currency can affect its price. Typically, when the crypto market is on the rise, investors shift their money from Bitcoin to speculative crypto assets. Conversely, when the crypto market is down, investors usually revert to Bitcoin as a safer asset choice.
Another factor affecting Bitcoin price is the global economy, such as market sentiment, inflation, and interest rates. Generally, high inflation has a positive impact on Bitcoin price, as it is seen as an asset resistant to inflation. However, high interest rates will negatively impact Bitcoin price. It is because investors tend to switch to safer assets with fixed yields.
Another factor that can affect crypto price predictions is regulation around the crypto market. New regulations or concerns about regulation around the crypto market can cause investors to shift to Bitcoin as a more profitable asset compared to altcoins.
Furthermore, Bitcoin price predictions may also be impacted by Bitcoin Halving. This occurrence has the potential to draw media focus and fresh investors, leading to heightened supply and demand, along with excitement or FOMO (Fear of Missing Out) surrounding Bitcoin. The resultant FOMO effect on market values could result in significant declines in Bitcoin prices.
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