Here’s What AllianceBernstein Predicts for Bitcoin in 2024

10 months ago 38

ARTICLE AD BOX

Bitcoin price trajectory in 2024 is garnering significant attention. Particularly, in light of the potential approval of a spot Bitcoin ETF (exchange-traded fund).

Several analysts anticipate a monumental year for Bitcoin, projecting a potential climb to a new all-time high.

AllianceBernstein’s Bitcoin Price Prediction

The optimism around Bitcoin’s 2024 performance stems from a confluence of factors. Notably, Bitcoin surged over 150% in 2023, with an impressive rally that saw it reach $45,913 in early 2024. This is its highest since April 2022.

Despite this price surge, Bitcoin remains over 30% below its all-time high of approximately $68,990, set in 2021.

Analysts at AllianceBernstein, a global asset management firm with $669 billion in assets under management, underscored several key drivers for Bitcoin’s anticipated rise. The first is the potential approval of a spot Bitcoin ETF, a development eagerly awaited by the crypto community.

The US Securities and Exchange Commission (SEC) is expected to decide on applications from prominent firms like ARK Investments by January 10. This approval, likely to be echoed for similar products by other asset managers such as BlackRock and Fidelity, could herald a new era of institutional investment in Bitcoin, pushing its price toward $80,000.

Gautam Chhugani and Mahika Sapra estimate estimating about $15 billion in total inflows for 2024. By 2028, they foresee 10% of Bitcoin being held under ETFs. Consequently, marking a significant shift in how this cryptocurrency is traded and stored.

“We expect 2024 to be a breakout inflection year for crypto. Bitcoin ETF flows build up could be gradual, but the applicants will be fighting hard to get a lead into this massive asset accumulation game, tuning up advertising and Bitcoin branding leading to a snowball effect,” analysts at AllianceBernstein said.

Another significant event on the horizon is the Bitcoin halving expected in April 2024. Historically, such halvings, which reduce the rewards for mining BTC, have led to substantial price appreciations in the following months. AllianceBernstein projects that this pattern will repeat, further fueling Bitcoin’s ascendancy.

Likewise, Robert Kiyosaki, the author of “Rich Dad Poor Dad,” highlighted the significance of the upcoming Bitcoin halving. He urged investors to pay attention to this pivotal event.

“If you want to be rich it is essential to have rich friends or at minimum friends who want to be rich. A Bitcoin halving is fast approaching. Please pay attention to Bitcoin halving, gold, and silver in January, February, and March. Please choose your friends carefully,” Kiyosaki emphasized.

Other Cryptocurrencies Also Look Promising

The broader crypto market also shows promise. AllianceBernstein expects Ethereum ETFs to be approved by June 2024. Therefore, Ethereum could potentially become the only other crypto to have a direct investment exchange-traded fund.

James Seyffart, an ETF analyst at Bloomberg, explained this anticipation builds on the SEC’s decision last year to allow futures Ethereum ETFs. This was an action that indirectly categorizes Ethereum as a commodity. He highlighted the SEC has not disputed Ethereum’s classification when undergoing the ETF registration process with the Commodity Futures Trading Commission (CFTC).

“The CFTC is blatantly calling Ethereum a commodity. They do not call them securities. […] The SEC has approved Ethereum futures ETFs. So again, Gary Gensler will not explicitly say whether Ethereum is a security or a commodity, but in their action, by approving those Ethereum futures ETFs, they’re implicitly accepting those Ethereum futures as commodities futures,” Seyffart said.

This bullish outlook on Bitcoin, Ethereum and the broader cryptocurrency market is echoed by various industry experts and thought leaders.

For instance, Lindsey Li, investor at Bessemer Venture Partners, emphasized the role of decentralized training of Large Language Models (LLMs) and the validation of AI-generated content ownership in driving the crypto market. On the other hand, Denelle Dixon, CEO of Stellar Development Foundation, predicted a surge in tokenization and blockchain-based transactions, enhancing global financial inclusivity.

Paul Brody, global blockchain leader at EY, remains optimistic about the crypto ecosystem’s growth due to the implementation of the Markets in Crypto-Assets Regulation (MiCA) in the European Union. Meanwhile, Seth Ginns, managing partner at CoinFund, believes in a surge in altcoins that may overshadow Bitcoin.