The beginning of August has been turbulent for cryptocurrencies, with Bitcoin still having room to soar up to $100,000 by 2024, according to Dominic Basulto, a digital currency expert.
Despite recent events, Basulto remains optimistic about Bitcoin’s future.
In a single day, the leading cryptocurrency lost 15% of its value on “Black Monday,” August 5th.
Some traders panicked, fearing Bitcoin would drop below $50,000, while others speculated that the much-anticipated rally might be over before it even began.
“I still believe Bitcoin will reach $100,000 by the end of 2024,” suggested Basulto.
This leap would require Bitcoin to nearly double its price in a short period.
“Yes, I am aware that geopolitical events in the Middle East could significantly dampen interest in risky assets like Bitcoin.
However, there is still a credible path to $100,000,” he added.
Here are three reasons to support this forecast:
Basulto’s first consideration is on Bitcoin halving, dating back to April.
It takes time for Bitcoin halving to have an impact as it alters the rate of new Bitcoin creation.
Similar to how monetary policy works, interest rate hikes or cuts do not have an immediate effect on the broader economy.
By observing the trading chart from the previous Bitcoin halving on May 11, 2020, one can see the delayed impact.
Bitcoin’s price hovered around $10,000 for months before surging to $12,000 in the summer and peaking at $28,994 by year-end, a more than 200% increase.
Various indicators can help gauge the likelihood of Bitcoin hitting $100,000 by late 2024.
Using cryptocurrency prediction markets like Polymarket, traders place real bets on whether specific scenarios will unfold.
Prior to Bitcoin’s sudden drop, these traders estimated a 42% chance of Bitcoin reaching $100,000 by 2024, which dropped to 20% a week later.
Another approach is to consider Bitcoin options, popular among real-world traders.
Currently, some of the most favored call options have a $100,000 strike price and expire at the end of December, indicating market belief in the possibility of Bitcoin reaching this milestone in the coming months.
For those considering Bitcoin investments, Basulto advises a long-term perspective rather than reacting to every market twist, especially during election years.
DISCLAIMER: The information and considerations in this article should not be the sole basis for investment decisions.
Readers are encouraged to make decisions based on their own risk tolerance and investment horizon.
The content is purely informative and should not be deemed as an offer or solicitation for public savings.
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