Bitcoin enthusiasts are optimistic about new all-time highs for the cryptocurrency despite a recent downturn that saw its value drop 20% between Sunday and Monday. The price has since rebounded to about $58,000, down 14% for the week.
Experts like Martin Leinweber from MarketVector and Onramp Bitcoin’s Mark Connors maintain that Bitcoin could surpass $100,000 by the end of 2024. However, some skeptics question Bitcoin’s status as a safe haven, noting its recent performance aligned with tech stocks, contradicting claims of it being uncorrelated.
Optimism Amid Volatility
Despite the recent sell-off, many Bitcoin bulls remain steadfast in their predictions. MarketVector’s Martin Leinweber and Onramp Bitcoin’s Mark Connors both foresee Bitcoin reaching between $80,000 and $110,000 by 2024. Bitwise Asset Management’s Matt Hougan echoed this sentiment, emphasizing the long-term investment mindset of Bitcoin holders.
Bitcoin’s Recent Performance and Future Prospects
Bitcoin’s double-digit decline, its worst since the FTX collapse, has raised questions about its reliability as a store of value. However, experts like Mark Newton from Fundstrat see the recent dip as a minor setback, maintaining predictions of Bitcoin reaching $126,000 by 2024. The fluctuating price is attributed to cross-market trade unwinding related to the US dollar’s strength against the Japanese yen.
Institutional Interest and Market Behavior
While some remain skeptical, citing Bitcoin’s alignment with tech stock movements, the overall sentiment among experts remains bullish. Increased attention is being paid to flows in and out of new Bitcoin exchange-traded funds (ETFs) managed by major Wall Street firms. US Bitcoin ETFs saw net outflows of $168 million on Monday, with trading volumes exceeding $5.2 billion.
