Cryptocurrency expert Lark Davis made bold projections for Bitcoin’s price, suggesting a surge to $100,000 in 2024 and potentially reaching $150,000 or beyond in 2025. Davis backed his assertions with evidence, explaining concrete data rather than speculative predictions.
Davis discussed the mathematical underpinnings of Bitcoin’s upcoming halving event, highlighting its impact on supply dynamics. With the halving set to reduce daily Bitcoin production from 900 to 450 BTC, Davis noted a significant drop in daily supply, from $45 million to $22.5 million. Despite this reduction, inflows into Bitcoin ETF products have recently surged, reaching $500 million per day.
The influx of funds into Bitcoin ETFs is particularly notable, surpassing daily miner production by a staggering tenfold. Davis pointed to this imbalance, indicating a shift in market dynamics where ETFs absorb new supply at an unprecedented rate. He underscored the potential implications of this trend, projecting substantial inflows into Bitcoin throughout 2024.
Davis thoroughly analyzed potential cash inflows into Bitcoin, projecting scenarios based on current trends. Even in the most conservative estimates, with inflows matching post-halving miner production, Davis forecasted a $100,000 Bitcoin price. He explored scenarios where ETF inflows outstrip miner production by multiples, suggesting the possibility of even higher price targets.
Moreover, Davis discussed additional catalysts driving Bitcoin’s upward trajectory, including potential ETF launches in Hong Kong and South Korea. He pinned the interest from institutional investors and retail buyers, indicating sustained demand for Bitcoin despite potential sell-side pressures.
Drawing parallels with previous market cycles, Davis outlined a path to $100,000 Bitcoin by late 2024, with the potential for an earlier breakthrough fueled by ETF inflows. Bitcoin is trading above the $52k level at the time of writing.
Also Read: Ethereum (ETH) Price All Set To Hit $4.5K This Week – Here’s Why
Bitcoin reached the $57,000 value mark on the 27 February after roaming around the $ 50k value for weeks. It is the closest value it has reached to its last all-time high value of $65,000 and is expected to cross that this time. Bitcoin price has surged more than 11% in a day and is trading at $56,706.75 at the time of writing this blog. The same goes for the trading volume, it has increased by more than 209%.
Because of Bitcoin’s performance, the rest of the altcoins are also impacted by good hikes. Many altcoins including Coti are trending in the crypto market because of the influence of Bitcoin on the rest of the coin’s performance.
Also Read: Polygon Price Prediction 2024 – 2025: Will MATIC Scale To $2 in 2024?
How Bitcoin Price Will Hit $100K Mark?
Bitcoin’s performance these days has been spectacular for the overall growth of the crypto market. It almost reached the $70k mark last year and it’s about to hit $60k these days. Based on the popularity and demand of Bitcoin, it’s not that hard to imagine it hitting the $100k mark within the next few years. Let’s look into the few things that have helped the current hike of Bitcoin which will also play a major role in reaching $100k as well.
Bitcoin ETF Is The Backbone Of Bitcoin’s Growth Curve
Bitcoin’s current value is only 20% less than the all-time-high and the experts have predicted for it to go even higher before April starts. The main reason for that is to happen will be the Bitcoin ETF which has recently recorded a cumulative trading volume of $50 Billion within a month of its launch. Earlier SEC approved 11 ETFs on 11 January 2024 triggering the confidence of the community and building the hype for Bitcoin.
In the last 24 hours, the ETF trading volume displayed increased interest and several trades by people. It has increased by more than $3.24 billion.
Microstrategy Has Added 3,000 BTC To Its Collection
Microstrategy recently bought 3000 more BTC worth $155 million. It is a Verginia-based company that is known for being the world’s largest publicly traded owner of bitcoin. It already had a collection of 190,000 worth more than $10.5 billion today. Microstrategy’s Bitcoin buys always give confidence and hope to Bitcoin holders and that leads to a chain of more buying to HODL to reach the best value.
Also Read: Ripple Price Prediction: Will XRP Price Hit $2 in 2024?
Bitcoin Halving
Bitcoin halving happens once in four years when the users get rewarded for their Bitcoin mining reduced by half. It is getting shorter as there are only 52 more days to go and the investors are rushing for the best position for the event. This is to reduce the rate of creating more Bitcoins and creating a scarcity of the coin leading to increased demand and increased prices.
To mine Bitcoin, the miner uses heavy computational power and solves some mathematical puzzles to receive a reward. The current reward system set for mining is around 6.25 Bitcoin and the worth of that reward will change according to the price fluctuations of BTC in the crypto market. This upcoming Bitcoin halving reduces that amount by half whereas the miners mine crypto to increase the circulating supply of Bitcoin.
Also Read: Ethereum (ETH) Price All Set To Hit $4.5K This Week – Here’s Why
Slow Dollar Trading
Statistics show that the Dollar trading was low on Monday and Tuesday and it has shown an inverse relationship with Bitcoin. Between Bitcoin and the US Dollar index, this showcases a little under the -0.65 correlation which indicates that Bitcoin might rise in value when the dollar is declining and vice-versa.
Conclusion
Bitcoin is the number 1 cryptocurrency and has the potential to impact the overall crypto market because of its market dominance. With the current price of $56,706.75, the hopes are high for the $100k among the community. We will have to wait for that to happen but it has a very little chance of Bitcoin to clear the milestone in 2024. Read more about the Ethereum ETF release date.
