Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
Is $100k On The Cards for Bitcoin in 2024?
Jasmine Birtles
21st Jul 2024
In this week’s column, I want to dive into the world of Bitcoin! A LOT has been going on in the crypto space, largely fueled by the recent assassination attempt against Donald Trump.
The fallout of the event led to significant movement on Bitcoin’s price chart as well as the charts of other well-known cryptocurrencies.
I recently held a great event with a panel of experts about whether or not Bitcoin will ever reach $100k. And would you believe it? The assassination attempt happened just days after!
Hours after the fatal shooting, the price of Bitcoin surged above $60,000 and is now sitting around $67,000 (at the time of writing). Some market analysts expect the price of Bitcoin to rise even more if there are any further signs of a Trump victory.
But why did the assassination attempt cause Bitcoin to go up? And, does this mean that Bitcoin is about to reach $100K?
Bitcoin’s recent rally is all to do with Trump’s pro-Bitcoin campaign.
The former president has been vocal about his support for cryptocurrency, recently speaking to Bloomberg Business Week about plans for a ‘US Crypto Strategy’.
Trump believes that the US should lead in the cryptocurrency industry and seems pretty keen to get there before China does!
What would a Trump win mean for the price of Bitcoin?
A Trump win would be advantageous for the cryptocurrency space. In fact, Standard Chartered’s head of forex and crypto research Geoffrey Kendrick recently shared his predictions that Bitcoin could reach $100,000 by US election day and go on to hit $150,000 by the end of 2024.
The assassination attempt against Trump has led many people to believe that the business mogul is set to win, which explains the optimism that currently circulates Bitcoin.
Trump’s pro-Bitcoin stance has captured the support of the wider crypto community and set him apart from anti-crypto Biden.
To me, it seems like Trump’s views on Bitcoin are a bit of a political play but, who’s to know for sure?
Nevertheless, the US election season has put Bitcoin on a trajectory to reach $100k a lot sooner than many people expected.
Is $100k on the cards this year?
So, what are the chances of Bitcoin reaching $100k by election day?
The answer seems to be a resounding ‘yes’. However, it’s important to understand other factors that could influence the price of the cryptocurrency. After all, Trump is just one cog in quite a complex machine!
Decreasing US inflation
One major factor that could affect the price of Bitcoin is US inflation data. The most recent US CPI report caused the price of Bitcoin to shoot up by 2% after the rate of inflation came in at a negative 0.1%.
Slowing rates of inflation have led to speculation that the US Federal Reserve will trim interest rates this year.
Rate cuts could boost the amount of money that people can afford to invest in riskier assets, like Bitcoin. This has caused many analysts to believe that rate cuts could see the price of BTC climb even further.
Nothing is set in stone yet. However, the CME Fed Watch tool put the odds of rate cuts happening at 70%, which is pretty likely!
Bitcoin’s 4-year cycle
Another interesting factor to be aware of is Bitcoin’s 4-year cycle. This refers to the Bitcoin halving event, which happens every 4 years.
Halving decreases the reward for mining Bitcoin, which decreases the rate at which new Bitcoins come into circulation. This reduces the total new supply of Bitcoin every four years.
The most recent Bitcoin halving occurred in April this year and the market is waiting to feel the effects.
Historically, halving events have been positive for the price of Bitcoin. After the 2020 halving, Bitcoin soared to $60,000 (it was trading at around $9,000 before the halving event!).
It wasn’t until several months after the halving that Bitcoin reached its new all-time-high – the halving happened in May 2020 and the coin didn’t reach $60,000 until March 2021.
History has a habit of repeating itself and if this is the case, the full effects of the most recent Bitcoin halving might not be felt until early 2025.
Considering the monumental growth that Bitcoin experienced in 2020, it seems plausible to me that the coin is on its way to $100k!
Of course, it is impossible to predict the future and there is no way of knowing for sure whether Bitcoin will reach $100k. Investing in cryptocurrencies is high-risk and you should conduct your own research before making any decisions.
If you are interested in taking advantage of Bitcoin’s potential but don’t feel confident enough to buy cryptocurrency directly, check out our guide on how to invest in Bitcoin without buying Bitcoin.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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