The price of Bitcoin fell from its all-time high of $64,400 in November 2021, but it began rising again in January 2022. The recent price of Bitcoin is $51,731, and the price chart indicates a rising pattern. Can it continue to grow and reach its all-time high in 2024?

What Are the Reasons Behind the Sudden Surge in Bitcoin Prices?

1. Approval of 11 Bitcoin ETFs

On 10 January, the US Securities and Exchange Commission (SEC) approved spot exchange-traded funds (ETFs) for Bitcoin. For disciples, the formal approval confirms that Bitcoin investments are safe and the preceding rally is proof of an unstoppable triumph.

As experts forecasted many investors are investing in bitcoin as it is easier for individual investors to trade Bitcoin-related investment funds in the US stock exchanges. This is one of the top reasons why price of bitcoin is rising. 

2. U.S. Federal Reserve Bitcoin Interest Rate for Crypto Market

The United States Federal Reserve decided to leave interest rates unchanged and dampened hopes of a potential rate cut in March. Investors expecting a lower interest rate are increasingly interested in investing in Bitcoin. This surge in interest is one of the reasons for the recent increase in the price of Bitcoin. Once the United States Federal Reserve cuts the interest rate, the price of Bitcoin may rise even further.

3. Bitcoin Halving Event:

A halving event refers to a period that occurs every few years when the reward for mining Bitcoin transactions is halved. Currently, those validating Bitcoin transactions receive 6.25 bitcoins, which could be reduced to 3.125. Halving events result in a decrease in the supply of Bitcoin, as fewer bitcoins are made available, thereby leading to higher prices. 

The Bitcoin Halving event is expected to occur in mid-to-late April 2024. Investors are hopeful that once it happens, the price will rise even further, and the current increase in demand for bitcoin supports this anticipation.

4. The Layer 2 Solutions:

One of the latest drivers of the current surge in Bitcoin’s price is the introduction of Layer-2 solutions. It has provided the network with increased scalability and usability. In the past, the Bitcoin network had limited functionality. As it was solely designed to mine and transfer bitcoins between wallets. However, with the emergence of new technologies and innovations, the network has evolved to support other use cases. Such as smart contracts and decentralized applications.

Also Read: Top Spot Cryptocurrency Exchanges

Industry Experts Forecast Soaring Prices

Kiyosaki isn’t alone in his optimism about Bitcoin post-halving. David Stryzewski, CEO of Sound Planning Group stated that Bitcoin is positioned for a significant rally. Additionally, a panel of experts at Finder, predicts that the price of BTC will exceed $77,000 in 2024.

In tandem, venture capitalist Tim Draper has reiterated his prediction of a $250,000 bitcoin price for this year. The head of research at Fundstrat suggests that Bitcoin is on a trajectory toward $150,000. It could potentially reach $500,000 within the next five years. Ark Invest, led by Cathie Wood, envisions a higher probability of Bitcoin’s price skyrocketing to $1.5 million per coin. Standard Chartered predicted that BTC could reach $200,000 by 2025.

Bitwise, an asset manager, expects BTC to surpass $80,000 within this year. While a competing firm, Vaneck, predicts that “Bitcoin will achieve an all-time high in Q4 2024. It was possibly driven by political events and regulatory changes following a U.S. presidential election.”

How Much Can It Rise?

Bitcoin’s fourth halving, expected in April, slashes its supply growth rate by half every four years. Currently, around 19.6 million BTC are in circulation, out of a total of 21 million that will ever exist. As mentioned above, experts predict Bitcoin will hit $100,000 by year-end, with the halving boosting prices.

As of Feb. 21, 2024, Bitcoin surged to $51,440.23, reigniting investor optimism. With just 10,829 blocks until the halving, set for April 2024, excitement builds for potential gains.

Now the question is, can Bitcoin hit $1,000,000 by 2025?

Speculation abounds about Bitcoin’s future, with some envisioning prices soaring to $1 million. Entrepreneur Samson Mow bets on $1 million within five years. 

While others, like Balaji Srinivasan, see it hitting $1 million in 90 days due to potential hyperinflation. However, experts caution against such extreme predictions, suggesting a more gradual rise over a decade.

Conclusion

The crypto industry has revolutionized over the years. With its growing acceptance worldwide, it is captivating both tech enthusiasts, and investors. However, the question is, can Bitcoin reclaim its throne and reach its highest price? While experts are being optimistic with their own sets of predictions, the assets show limitless potential. The world is preparing to witness another record breaking level of Bitcoin with the green candle going up in 2024 and beyond.