What are the year-end expectations for the price of Bitcoin, Ethereum and altcoins?
Price predictions for cryptocurrencies by 2024 are influenced by several factors and of course no one has the crystal ball to predict prices exactly, but there is some data you can check to get closer to a realistic expectation.
In particular, the price of Bitcoin is influenced by the possibility of the Federal Reserve raising interest rates, probably in September or November. If rates rise, the price of Bitcoin could rise as well. It is also essential to monitor theprogress of lawsuits involving companies like SEC, XRP, Binance and Coinbase in the off-exchange space.
With regulations tightening, transparent cryptocurrency laws are essential for both regulators and companies in the sector.
In addition to this, the approaching BTC halving and the potential approval of a BTC ETF must also be considered.
“These factors suggest that BTC could experience an initial period of containment, followed by a rally in the second half of 2023. The price is expected to adjust from $31,800 to $28,000, then surpass previous highs, reaching or exceeding the $40,000 by the end of the year,” explains Gracy Chen, managing director of crypto exchange Bitget.
Ethereum price predictions
Recently, the coin running on the Ethereum blockchain, ETH, has shown a weaker performance than Bitcoin.
The main reasons are continued market speculation on existing assets and lack of incremental funds.
“The continued increase in the staking rate of ETH and the gradual increase in its annualized destruction rate, together with an unchanged price, have led to a reduction in the benefits of staking and hindered the formation of a perfect positive feedback loop.
However, if there is an influx of incremental funds that results in a significant increase in the price of ETH, the staking yield for users will increase substantially. This, in turn, may not lead to more users staking ETH, resulting in lower market circulation rates,” Bitget continued to explain to us.
Therefore, Gracy Chen estimates that by the end of 2023, Ethereum will stabilize around $2,200 and could fluctuate between $2,200 and $3,200 ahead of new highs in 2024.
Expectations and preparations for 2024
The impact of the Federal Reserve’s quantitative easing on overall capital market liquidity will be significant. If the BTC ETF is approved in a relatively moderate market environment it could radically change the perception of BTC, potentially driving its price to all-time highs.
A bull market is expected from 2021. While the emergence of meme coins and endorsed ETFs has created some activity in the market, the predicted surge has not yet arrived.
The cryptocurrency market is affected by factors such as adoption rates, institutional investor interest, market regulations, and global economic conditions, which could prevent significant incremental funds from entering during 2023.
However, looking ahead to the next five years, the cryptocurrency market is expected to become one of the mainstream markets.
“In my view, the next five years will mark the beginning of a new bull phase. The price of Bitcoin is expected to not only surpass its previous high of $69,000, but also reach an impressive $200,000,” he said. Bitget explained.
Nansen and TokenInsight provided reviews and analysis of centralized exchange (CEX) development patterns during the first half of the year and the second quarter.
The occurrence of various “black swan” events towards the end of the previous year prompted CEXs to prioritize transparency. In particular, Binance and Bitget have emerged as exemplary exchanges by making hedge fund wallet addresses public.
Despite the adverse market conditions, Bitget has recorded remarkable growth in derivatives trading during the first half of this year, demonstrating sustained development.
The BGB platform token performed exceptionally well, falling from less than $0.2 at the start of the year to nearly $0.5, making it one of the best performing platform tokens.