Home Bitcoin News Bitcoin Predicted to Double by End of 2024: Here’s Why

Bitcoin Predicted to Double by End of 2024: Here’s Why

Bitcoin Predicted

Bitcoin, the world’s most well-known cryptocurrency, has recently surged to around $70,000, catching the attention of investors and analysts alike. According to Plan B, the creator of the widely-followed stock-to-flow model, Bitcoin’s value could potentially double in the next 3-5 months, reaching a staggering $150,000 by the end of 2024. Let’s delve into the reasons behind this bold prediction and what it means for the future of Bitcoin.

Plan B’s Stock-to-Flow Model

Plan B’s stock-to-flow (S2F) model is a method used to evaluate the value of Bitcoin by comparing its circulating supply with its annual issuance. This model has been a reliable predictor of Bitcoin’s price movements in the past, and Plan B remains confident in its continued accuracy.

The S2F model posits that as Bitcoin’s supply becomes scarcer, its value increases. This is particularly relevant following the Bitcoin Halving event in April 2024, which reduced the rewards for mining new Bitcoins, thus decreasing the rate of new supply entering the market. This scarcity is a fundamental aspect of Bitcoin’s value proposition and is a key reason for the optimistic price predictions.

Stabilization of Miner Revenue

One critical factor contributing to Plan B’s prediction is the stabilization of Bitcoin miner revenue post-halving. The halving event typically leads to a reduction in mining rewards, which can pressure miners to sell their Bitcoin holdings to cover operational costs, potentially leading to price drops.

However, Plan B notes that miner revenue has stabilized since the April 2024 halving, reducing the likelihood of miner capitulation and subsequent selling pressure. This stabilization is a positive indicator for Bitcoin’s price, as it suggests that miners are not being forced to sell their holdings at current prices, thus reducing downward pressure on the market.

Historical Data and Future Predictions

Plan B’s prediction of Bitcoin reaching $150,000 by the end of 2024 is rooted in historical mining data and the S2F model. He argues that Bitcoin could average $500,000 between 2024 and 2028, highlighting the long-term bullish outlook for the cryptocurrency.

Responding to a query about Bitcoin potentially topping at $140,000, Plan B disagreed, suggesting that such a price point might be too conservative given the current market dynamics and historical trends.

Market Sentiment and External Factors

The broader market sentiment also plays a crucial role in Bitcoin’s price movements. Bitcoin ETFs have seen significant inflows over the past few weeks, with analysts expecting this trend to continue. The upcoming US Federal Reserve meeting is anticipated to be a key event for the crypto market. While most investors expect rates to remain unchanged in August, a possible 25 basis points cut in September could further stimulate the market.

Additionally, as the US elections approach, further volatility in Bitcoin’s price is expected. Political events often have a significant impact on market sentiment, and the cryptocurrency market is no exception. Investors are advised to stay informed and be prepared for potential fluctuations as these events unfold.

Other Expert Opinions

Plan B is not the only expert predicting a bright future for Bitcoin. Spot-on-Chain, another respected analyst, forecasts Bitcoin reaching $100,000 by the end of the year and $150,000 by mid-2025. These predictions align with Plan B’s outlook and suggest a broad consensus among experts regarding Bitcoin’s bullish trajectory.

Conclusion

Bitcoin’s recent surge to around $70,000 has reignited interest and optimism in the cryptocurrency market. Plan B’s prediction of Bitcoin doubling to $150,000 by the end of 2024 is supported by the stock-to-flow model, historical mining data, and the stabilization of miner revenue post-halving. While external factors such as the US Federal Reserve’s decisions and upcoming elections add layers of complexity and potential volatility, the overall sentiment remains positive.

As always, investors should conduct thorough research and consider various factors before making investment decisions. The cryptocurrency market is known for its volatility, and while the predictions are optimistic, it is essential to approach with caution and stay informed about market developments.

Bitcoin’s journey continues to captivate the world, and the coming months could be pivotal in shaping its future. Whether Plan B’s predictions come to fruition remains to be seen, but the potential for significant price movements is undeniably high.

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Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

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