Bitcoin’s Price Prediction: Why $100,000 by 2025 is Inevitable
When it comes to Bitcoin, few things are certain. However, with a better understanding of its inner workings, there are some certainties that come into focus. And one of them is that just as Bitcoin hitting $1,000, $10,000, and $50,000 was inevitable, so too is a $100,000 price tag.
The Impact of the Halving
One of Bitcoin’s fundamental characteristics that influence its price most is the halving. A halving event occurs approximately every four years, reducing the reward miners receive for adding new blocks to the blockchain by half. As a control for the only way new bitcoins enter circulation, the halving essentially slashes Bitcoin’s inflation rate. By reducing its inflation rate, the halving alters the dynamics around Bitcoin’s supply and demand.
The halving process is the most significant factor that has affected Bitcoin’s price over the years.
With the halving, even if demand remains constant, its price must rise to offset the reduced supply. Historically, Bitcoin tends to see significant price increases in the year following a halving. On average, Bitcoin has jumped roughly 125% higher in halving years. If we measure Bitcoin’s price at the beginning of the year, which was around $45,000, a 125% increase would put its price at $99,000. This historical pattern suggests that Bitcoin could come very close to the six-figure mark by the end of the year.
The Extra Boost Bitcoin Needs
If things unfold similarly to past halving years, Bitcoin could find itself near six figures, but not quite. To add a little more certainty that it has what it takes to hit $100,000 sooner than later, there’s another factor to consider – spot Bitcoin ETFs. In January 2024, 11 spot Bitcoin ETFs were approved, marking a significant milestone for the cryptocurrency and the greater crypto market overall.
Spot Bitcoin ETFs democratize access to Bitcoin and open up the cryptocurrency to new buyers.
These ETFs are designed to track the actual price of Bitcoin and offer investors an easy way to gain Bitcoin exposure through traditional brokerages without having to navigate complicated cryptocurrency exchanges. Essentially, the spot Bitcoin ETFs democratize access to Bitcoin and open up the cryptocurrency to new buyers.
The Reality Investors Need to Know
With the added effect of the spot Bitcoin ETFs, plus the effects of the halving still materializing, 2024 is shaping up to be the year that Bitcoin hits the coveted six-figure mark. However, it is imperative to remember that investing in Bitcoin should be done with the long haul in mind.
“With the long-term potential of Bitcoin’s finite supply, decentralization, security, and resilience, the cryptocurrency remains an attractive buy as it continues its journey of long-term price appreciation.”
Bitcoin’s value is positioned to keep appreciating as the decades pass.
Whether Bitcoin hits $100,000 in 2024, 2025, or some other year, the cryptocurrency remains an attractive buy as it continues its journey of long-term price appreciation.
