Bitcoin’s Journey to $100,000: Will 2024 Be the Year?

Bitcoin has been on a meteoric rise over the last 15 years, surpassing all expectations and projections. From just a few pennies per digital coin to over $50,000 in 2021, the cryptocurrency has taken the world by storm. Now, with its price hovering around $70,000 in June 2024, the next major milestone in sight is the coveted six-figure mark of $100,000.

The key to understanding Bitcoin’s potential trajectory lies in the concept of halving. This pre-programmed event, which occurs approximately every four years, reduces the reward for mining new blocks by half and contributes to Bitcoin’s scarcity and price appreciation. The most recent halving in April 2024 sent Bitcoin’s inflation rate to just 0.85%.

Historically, in the year of a halving, Bitcoin’s price has increased by around 125% on average. If we measure from its price at the beginning of the year ($44,000), a 125% increase would put its price at $99,000. This suggests that Bitcoin could be on track to reach $100,000 in 2024.

However, there is a new variable to consider in this halving cycle: Spot Bitcoin ETFs. These investment vehicles allow institutional investors to accumulate Bitcoin without regulatory or custodial concerns, potentially increasing demand and putting pressure on Bitcoin’s supply. In fact, ETFs were buying Bitcoin at a rate 10 times the daily production in February, helping to push its price to a new all-time high.

With all these factors in play, 2024 is shaping up to be the year that Bitcoin reaches $100,000. While there is always an element of speculation in such predictions, the trends around halving and the influx of institutional investors make a strong case for Bitcoin’s continued growth. Whether it happens this year or in 2025, one thing is clear: Bitcoin continues to surprise us and defy expectations.

Investors looking to capitalize on Bitcoin’s potential growth should consider the insights provided by the Motley Fool Stock Advisor analyst team, who have identified the 10 best stocks for investors to buy now. While Bitcoin may not be on that list, the potential for significant returns in the coming years is undeniable. As Bitcoin continues its upward trajectory, the question remains: will it finally hit $100,000 in 2024?