With Bitcoin (BTC +0.88%) currently trading near an 18-month high of $44,000, it's perhaps no surprise that a number of analysts and investors are now rushing to put out higher price targets for Bitcoin. The growing consensus is that Bitcoin could be on a trajectory to hit $100,000 next year.
As a result, top executives from within the crypto industry are now chiming in on Bitcoin's prospects for 2024, with many convinced Bitcoin could more than double in value within just 12 months. Let's take a closer look at why they think Bitcoin could be worth $100,000 in 2024.
Bitcoin at $100,000?
One of the most prominent voices calling for a rapid appreciation in the price of Bitcoin is Michael Saylor, chairman (and former CEO) of MicroStrategy (MSTR +4.46%). His company is one of the world's largest holders of Bitcoin, thanks to a Bitcoin accumulation strategy launched back in August 2020. As of Nov. 30, MicroStrategy held 174,530 Bitcoins acquired at an average price of $30,252. Given Bitcoin's current price of $44,000, MicroStrategy is now sitting on a profit of over $2 billion.
While Saylor has not put out an official price target for Bitcoin in 2024, he recently appeared on CNBC in November and said Bitcoin had the potential to 10x in value. Further, in early December, he suggested on social media that "One day we will all brag about buying five-figure Bitcoin." So, it seems safe to assume that he thinks Bitcoin will break through the $100,000 mark soon.
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And Saylor is not alone. Other crypto executives also think Bitcoin is headed to $100,000 and beyond. Crypto financial services firm Matrixport recently suggested Bitcoin could be headed to $125,000 by the end of 2024. And Adam Back, CEO of Blockstream, suggested Bitcoin might hit $100,000 before the next halving, currently scheduled for April 2024.
Wall Street joins the Bitcoin party
It's one thing for crypto executives to be talking up the price of Bitcoin. But it's another thing entirely when prominent voices within the mainstream financial industry are also pondering the prospect of Bitcoin at $100,000. In April, Standard Chartered Bank put out a $100,000 price target for Bitcoin and, in November, reiterated its bullish stance.
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And don't forget about the prominent institutional investors who are long-term bullish on Bitcoin. One of the leading voices here is Cathie Wood of Ark Invest. Her firm originally put out a $1 million price target for Bitcoin and followed that up with a revised $1.48 million price target for the year 2030. Bitcoin would likely have to soar in value next year to hit that lofty target.
Why $100,000?
At this point, it's only natural to ask: Why are so many people convinced that Bitcoin will soar past the $100,000 mark next year? If you analyze the various predictions made by the crypto industry and Wall Street executives, there appear to be two major catalysts.
The first catalyst is the imminent arrival of the first-ever spot Bitcoin ETF for the U.S. market. A handful of Wall Street firms have already filed exchange-traded fund (ETF) applications with the Securities and Exchange Commission (SEC), and the current consensus is that approval will come sometime in early 2024. When that happens, a tsunami of new institutional investor money could flood into Bitcoin.
The second catalyst is the Bitcoin halving, now scheduled for April 2024. This event, which results in the reward paid out to Bitcoin miners being cut in half, takes place only once every four years. In three previous halving cycles, the price of Bitcoin has soared, so the excitement around this next halving cycle is almost palpable. Of course, just remember that past performance is no guarantee of future performance.
What could possibly go wrong?
While all lights seem to be flashing green right now, keep in mind that a lot could potentially go wrong on the path to $100,000. For one, the SEC might decide that it will never approve a spot Bitcoin ETF. That could be disastrous, given how important the Bitcoin ETF narrative has become. Moreover, the Bitcoin halving could turn out to be a dud, and that, too, would put a serious dent in any bullish Bitcoin forecast.
Taking all of that into account, Bitcoin has a real opportunity to double in value in 2024. Right now, $100,000 seems like a reasonable price target, especially given that Bitcoin has already more than doubled in value this year. As a result, I remain long-term bullish on Bitcoin.
