Analysts predict Bitcoin will soar to $160,000 after halving in 2024

Bitcoin has historically rallied after halving events, which automatically reduce the supply of new tokens on the open market, and traders may be pricing in the next event, which is scheduled for April 2024.

A host of catalysts and historical trends could push Bitcoin (BTC) to $160,000, with analysts widely expecting the bull run to unfold by 2024.

Expected bitcoin demand from multiple U.S. spot exchange-traded funds (ETFs), the upcoming halving (which cuts bitcoin output in half every four years) and growth in the broader stock market amid loose interest rate policies could push bitcoin prices to at least $50,000 in the short term, blockchain analytics firm CryptoQuant said in a report shared with CoinDesk on Wednesday.

Analysts at CryptoQuant said: “We believe that Bitcoin and cryptocurrency markets are likely to perform positively in 2024, mainly influenced by the following factors: 1. Market valuation cycle, 2. Network activity, 3. Bitcoin halving, 4. Macroeconomic views, 5. Bitcoin spot ETF approval, and 6. Stablecoin liquidity growth.”

“Both on-chain valuations and network indicators suggest that Bitcoin is still in a bull cycle, with a medium-term target of $54,000 and a peak of $160,000,” the analysts said.

Bitcoin often sees a price surge after its halving events - which automatically reduce the supply of new coins on the market - and traders may already be preparing for the next halving, which is expected to take place in April 2024.

Meanwhile, seven traditional financial giants, including BlackRock (BLK) and VanEck, are in talks with the U.S. Securities and Exchange Commission (SEC) about a spot Bitcoin ETF — and the back-and-forth could mean that talks are actively ongoing.

Some prominent Bitcoin holders said the development could be one of the most important events on Wall Street “in 30 years.”

“It’s not a stretch to say this is probably the most important development on Wall Street in 30 years,” Michael Saylor told CNBC on Tuesday, suggesting that the last similar product was the S&P 500 ETF, which gave investors one-click exposure to the popular index. Saylor’s business software company MicroStrategy is the world’s largest public bitcoin holder, with more than $8 billion in bitcoin in its arsenal.

Traders also expect the Federal Reserve to cut interest rates in 2024 as inflation continues to fall - lower rates have historically favored big bets on risky assets such as tech stocks and cryptocurrencies.

However, CryptoQuant warned in its report that prices could still slide in the short term as investors are sitting on large unrealized gains in the recent period.

“Given that short-term Bitcoin holders currently have high unrealized profits, which historically has often triggered price corrections, there is some risk of a price correction,” the analysts said.