Bitcoin Price Forecast For 2024 - Will High Volatility Be Maintained?

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Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) has kickstarted the whole digital currency craze. Cryptocurrencies use blockchain technology for peer-to-peer transactions without a centralized authority.Bitcoin was created to make financial transactions free and affordable. However, currently, cryptocurrencies are less utilized for everyday transactions, and they mainly serve as speculative assets. As more and more investors and speculators try to make more money in the crypto market, liquidity increases. It is difficult to use a highly liquid currency as regular money. Money is a technology that serves three main functions: money is a medium of exchange, a unit of account, and a store of value. Bitcoin is very different from regular money and is more similar to gold. Bitcoin has a capped supply at 21 million units. During high inflation, investors are searching for ways to purchase inflation-resistant assets, and cryptocurrencies are at the top list for many.
Where Bitcoin price might be in 2024?The answer to this question is nobody knows for sure. We can only speculate. There are various factors that impact the price of bitcoin. The main factors are:

Supply and demand: the basic principles of supply and demand play a significant role in price creation. As already mentioned, the creation of Bitcoins is capped at 21 million and only about 2 million Bitcoins are left to be mined.

Market sentiment: Investor sentiment and perception of Bitcoin’s value dramatically influence the price. Positive regulatory and developments news helps the price increase, while frauds, tight regulations, and other negative news drag the price down as investors start selling their coins.

Market volatility: because crypto markets are highly volatile, they attract risky investors. High volatility can reduce the interest from long-term investors.

Macroeconomic factors: Interest rate decisions, inflation, and global events play a major role in asset valuation, including determining the value of crypto. As already mentioned, bitcoin is viewed as gold by many investors. And during high inflation prices of gold increase. According to the International Monetary Fund (IMF), 2023 was characterized by high inflation and a weak global economy. Global military conflicts also contribute to increased uncertainty, food shortages, and inflation.

According to fundamental analysis, bitcoin’s price can keep increasing for 2024, as global inflation is projected to remain a challenge and government spending all around the globe is projected to increase. The military conflicts in Ukraine and Israel and also contributing to global inflation, and it’s difficult to predict when these conflicts will be over. Now let’s take a look at technicals. As you can see from the chart, at the end of the year 2023, Bitcoin is in an uptrend against the US Dollar. However, as seen from the daily chart, the cryptocurrency is highly volatile. It’s more likely that Bitcoin will remain highly volatile for the year 2024. At the same time, bullish trends are obvious.

To wrap up
Predicting bitcoin price for 2024 is speculative due to factors like supply, demand, market sentiment, and global inflation. The IMF links 2023 to high inflation, a weak global economy, and conflicts. Fundamentally, Bitcoin might rise due to global inflation and increased government spending. Yet, technical analysis shows high volatility against the US Dollar, suggesting a potentially unpredictable 2024 despite bullish signs. Uncertainties in global conflicts and economics add to Bitcoin’s unpredictable future prices.More By This Author:Unpacking The Israel-Hamas Conflict: Implications For Global Markets
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