From being a mere curiosity, Bitcoin has today become one of the most talked-about digital currencies globally. Its recent price surge has been nothing short of impressive, getting people wondering about why is bitcoin going up and attracting attention from investors, tech enthusiasts, and speculators globally.
Using blockchain technology, Bitcoin is considered one of the most rapidly developing fields of innovation in recent years. It has a unique feature that makes it similar to gold: only a limited amount of it will exist. Like gold, Bitcoin has become more and scarcer over time. Because of this, many people call Bitcoin “digital gold.” Bitcoin is not just a currency you can use cross-border; it is also a way to store value and protect investments, especially during economic uncertainty.
Bitcoin stands out as a powerful financial technology with the potential to revolutionize the world. Therefore, its growth will be significant, reflecting its true value as a universal currency. And with more and more of the top players warming up to accepting Bitcoin, that day is near when this cryptocurrency will become one of the mainstream options of payment.
How has Bitcoin fared so far?
Bitcoin crossed the $1 mark in April 2011 after it started trading on online exchanges. Since then, investors and technologists have been intrigued by its volatility and blockchain-based design. During 2013, bitcoin reached an all-time high of $1,000, marking a big milestone. However, crypto got little attention in December 2017, when prices skyrocketed to nearly $20,000.
The bitcoin price dropped to under $4,000 after the crypto market frenzy in 2018. However, with the onset of the COVID-19 pandemic, stocks and cryptocurrencies again gained popularity, driving bitcoin prices to new highs. With a series of bitcoin futures ETFs launched late in 2020, bitcoin hit its all-time high of almost $69,000 in November 2021.
A rise in interest rates in 2022 led to a sell-off of Bitcoin and other risk assets, leading to a drop of almost 65% in Bitcoin’s price. Since tightening monetary policy throughout 2023, inflation has been reined in, and investors are again looking at cryptocurrencies. As of January 2023, Bitcoin was over $20,000 after hitting its bottom at under $16,000 in November 2022.
Bitcoin held up well during the early 2023 U.S. banking crisis. Despite the collapse of crypto-focused banks Silvergate Bank and Signature Bank, bitcoin stayed strong. After the banking crisis, crypto market contagion was no longer a concern. If the SEC approves bitcoin ETFs, it will shift investor attention. Bitcoin investors seem bullish heading into 2024, and the price is increasing. Remember, though, that cryptocurrency investments can be volatile and fluctuate incredibly.
A look at Bitcoin in 2024
Going by its recent bull run till December 5th, 2023, the price of Bitcoin has risen year on year by more than 160 percent. Crypto market analysts feel that the value of Bitcoin might increase in the next year, but it is extremely tough to predict, given its incredible volatility.
Some scenarios that could lead to its price rise include:
● Bitcoin halving –
Bitcoin’s 2024 performance will be driven significantly by its halving event in April. Historically, the price rallied for over a year after the halving event. So if that trend continues, Bitcoin might rise to $148,000 within the first six months of 2025.
● Clarity in regulation –
Regulations that foster innovation and protect investors may boost investor confidence and increase Bitcoin demand if governments and regulators establish them. Besides, a spot Bitcoin ETF approval by the SEC can also trigger a major bull run for Bitcoin in 2024.
● Adoption worldwide –
Bitcoin’s price may rise as more businesses, financial institutions, and even governments accept it as a medium of exchange.
● Innovations in blockchain –
Blockchain technology advancements may lead to new industries and use cases adopting Bitcoin as a currency or store of value, further driving up demand and price.
However, cryptocurrency experts feel that the world’s popular crypto coins still have a long time to again hit their all-time high. Bitcoin reached its highest point in November 2021, when it almost touched the $69,000 milestone.
Final words
Bitcoin has demonstrated a consistent upward trajectory in recent years, indicating significant potential for further growth in the New Year. But even if the trend appears bullish at present, it is impossible to predict the value of Bitcoin in 2024, over weeks and months.