Bitcoin (BTC) could potentially reach a staggering $180,000 by April 2024, according to research conducted by Fundstrat. The research note suggests that the supply and demand dynamics of Bitcoin indicate a surge in price, especially if a Bitcoin spot ETF is approved in the United States. Fundstrat believes that the launch of a Bitcoin ETF would significantly increase daily demand for Bitcoin, potentially reaching $125 million, while daily supply remains at $25 million. This would create an imbalance that would drive the price of Bitcoin to a new equilibrium, ranging between $140,000 and $180,000.
Fundstrat’s analysis also takes into account the upcoming halving event in April 2024, where the Bitcoin network will reduce the number of BTC emissions per block in half. Historically, halving events have been followed by major bull runs in the crypto market. However, Fundstrat’s research suggests that reaching a new all-time high may not even require the halving event.
Standard Chartered Bank analysts also share a bullish outlook on Bitcoin, predicting that it could reach $120,000 before 2025. They attribute this potential surge to miners hoarding their newly minted coins in the medium term. Additionally, Bloomberg ETF analysts estimate that a Bitcoin spot ETF could accumulate $54 billion in capital over time, based on the success of Canada’s smaller market.
The prediction by Fundstrat comes just before the Federal Reserve’s next meeting, where it is expected that the target interest rate will be raised by 25 basis points. Despite the rate hikes, both stocks and Bitcoin have seen positive performance this year, and concerns of an imminent recession are diminishing. Fundstrat’s Tom Lee believes that the announcement from the Federal Reserve will only have a 1% impact on stock prices, indicating that institutions should not expect a major market correction in the near future.
In conclusion, Fundstrat’s research suggests that Bitcoin has the potential to reach $180,000 by April 2024, driven by supply and demand dynamics and the potential approval of a Bitcoin spot ETF in the United States. The upcoming halving event may not even be necessary for Bitcoin to reach a new all-time high. Other analysts and research firms also share a bullish outlook on Bitcoin’s future performance. The market will closely watch the Federal Reserve’s next meeting for any potential impact on stock prices and the overall market.