Coinshares Predicted $ 60,000 for Bitcoin in 2024: Here are the Details

According to a recent report from cryptocurrency analysis company Coinshares, 2024 will be a transformational year for Bitcoin and the overall digital asset market.

Coinshares highlights the recent launch of spot Bitcoin ETFs in the US as a significant development. This milestone, a decade since the initial SEC filing, has expanded the market to a broader range of investors.

The company estimates that Bitcoin prices could rise to around $60,000 if 10% of current assets under management (about $3 billion) are invested post-launch.

According to Coinshares, monetary policy continues to play an important role in determining Bitcoin’s value. As interest rates rise, investors are shifting their focus to competing stores of value such as U.S. Treasury bonds. The stability of the US Dollar is also an important consideration, given Bitcoin’s inverse correlation with the US Dollar.

Coinshares notes that with inflation rates falling sharply in developed countries, expectations are increasing that the FED may reduce interest rates in the first half of 2024. Such a decision could increase the attractiveness of fixed-supply assets, including Bitcoin and gold, compared to U.S. Treasury bonds, analysts say.

Coinshares suggests that during times of uncertainty, such as a crisis of confidence in US debt or instability in the US banking system, BTC may receive more support as investors view Bitcoin as a reliable asset.

While Bitcoin typically exhibits a negative correlation with the US Dollar, Coinshares observes that this correlation has increased recently. This trend is often seen during periods of monetary policy changes or market stress, when investors flock to more stable assets. However, Coinshares expects this trend to be temporary and predicts that Bitcoin will return to trading inversely to the US Dollar within the next 12 months.

*This is not investment advice.

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