Cryptocurrency bulls are often absent when prices are at multi-year lows. They appear en masse after prices soared.
Venture capital firm CoinFund issued a $500,000 price target on Bitcoin. The managing partner based the forecast on Bitcoin’s inverse correlation with the dollar and real yields. Just as the crypto industry accelerated its rally when the SEC lost its case to delay a spot ETF for BTC, CoinFund is also relying on this ETF launch.
Expectations would have attracted more attention from the 2024 BTC price targets ranging from $60,000 to $500,000. However, these calls would have paid off had analysts set them at the bottom. Bitcoin traded as low as around $17,700 before its incredible rise.
Last year, CZ settled with prosecutors while courts found FTX founder Sam Bankman-Fried guilty on all charges. Prosecutors will not pursue a second trial against SBF. This removes the bearish headlines that may stall Bitcoin’s continued uptrend in 2024.
Bitcoin closed at $43,712 recently. An over 10-fold increase in its value is not impossible. Speculators who want to bet on this target will need to pay more than double last year’s prices to play. That is an expensive proposition.
The US dollar and gold prices could strengthen if the central bank merely sustains interest rates at over 5%.
