After a turbulent 2022, where Bitcoin (BTC) sank to a high-profile low of less than $16,000, 2023 has been a relatively successful year for the world’s leading cryptocurrency. Bitcoin has bounced back quickly, even as other cryptocurrencies faced depreciating values and low trading volumes.
According to Forbes, investors have trooped to BTC in recent months due to expectations that the US SEC (Securities and Exchange Commission) may give the green light for the first spot cryptocurrency exchange-traded fund in the major US exchange. But regulators are still going after cryptocurrency exchanges and prominent executives.
A notable example is Changpeng Zhao of Binance, who recently pleaded guilty to breaking Anti-Money Laundering rules before agreeing to pay a $50 million fine. The charismatic billionaire was the focus of a protracted government inquiry that concluded his company violated the Bank Secrecy Act.
Sam Bankman-Fried of FTX is another popular figure to face the wrath of authorities in efforts to purge the sector. Authorities found him guilty of seven criminal charges linking him to the fall of FTX. His sentencing date will be March 28, 2024, with a maximum sentence of 115 years.
But despite these challenges, Bitcoin and Ethereum are projected to hit new highs in 2024 if Samson Mow’s ambitious prediction is anything to go by. Mow has been a staunch advocate of BTC for a long time, and his latest prediction that this digital coin might soon hit the $1 million mark has sparked a wave of excitement in the cryptocurrency sector.
Mow’s bullish forecast is pegged on the expectation that BTC investors will inject large quantities of institutional capital into the market. The industry expert is also banking on the historical significance of BTC’s halving events, which have historically preceded a notable surge in value.
Rager, another closely followed crypto strategist, recently told his over 199,000 followers on platform X that BTC could rally to $50,000 by January 2024. But he also had some bad news. Rager believes the value will fall to around $30,000 as Bitcoin approaches its 2024 halving. The halving, which will happen in April 2024, slashes miners’ rewards by 50%.
164% Bull Run Since January 2023
2023 has been a surprisingly successful year for BTC. This year has seen the “king of cryptocurrencies” shoot up its value by more than 164% and is currently trading above $41,000. This rate means BTC has outperformed traditional assets like S&P 500 and gold, which have risen by 20% and 10%, respectively.
According to CoinGecko data, Bitcoin has increased its total share in the cryptocurrency market from 38% to over 50%. This means BTC has further cemented its position as the most valuable digital coin. It’s currently the most used cryptocurrency on online casinos worldwide and other platforms.
Last month, BTC prices reached a new 52-week high after soaring above the $38,000 mark. For example, BTC’s price swung from $34,620 to $37,970 between November 4 and November 14. This preceded a slight setback when it traded just above $36,500 before bouncing back to $37,300 in the closing weeks of the month. That’s an extreme level of volatility that may be rare in other cryptocurrency investments.
Besides BTC, other cryptocurrencies posted strong performances in November 2024. Ethereum (ETH) rose as high as $2,135 before finishing the month above $2,000. Investors are hoping that the potential spot BTC ETF will also open the way for spot ETH ETF approval. Solana (SOL) also rallied by 57% after being praised by industry experts for its low cost and high-speed nature.
Despite the notable recovery, it’s worth noting that BTC value has dropped by over 45% from its all-time high of roughly $68,790 in November 2021. Still, its value increased by over 8% in November 2023 and around 120% this year. On the other hand, Ethereum increased by roughly 12% in November and 56% in 2023.
Should You Invest in BTC in 2024?
Bitcoin is undoubtedly a worthy investment if you’re a short-term trader looking to speculate on this highly volatile asset. It’s also a suitable investment for experienced long-term traders with enough resources to tolerate the volatile nature of this digital coin.
But remember that BTC’s long-term performance is uncertain when compared to gold and silver. So, instead of concentrating on where BTC’s value will go in 2024, investors would be better off focusing on cryptocurrencies as a long-term asset to diversify their portfolio.
According to Xapo Bank CEO Seamus Rocca, BTC can surpass the $100,000 mark and trade between $500,000 and $1 million in a decade. However, he noted that nobody knows “exactly when,” and its volatile nature means investors should hold it in the long term and not trade. Keep that in mind!
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