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© Reuters. Updated Bitcoin price outlook for 2024
As the price rises again, the cryptocurrency is once again becoming the main topic of conversation among investors and analysts
Bitcoin prices
After significant gains in recent weeks, Bitcoin has continued to rise this week, surpassing $57,000 on Tuesday. The latest move saw it reach its highest level since November 2021.
Year-to-date, the leading cryptocurrency is up 35%, while Tuesday’s gains of more than 4% (so far) add to its rise of over 142% in the last 12 months.
Research firm Compass Point said in a recent note that BTC and ETH have both outperformed, rising significantly since their last report. The move has also resulted in “strong crypto stock returns,” the company notes.
For example, Coinbase (NASDAQ:) is up over 13% so far this year, while Microstrategy (NASDAQ:) is up 24.9% in 2024.
Compass Point selected COIN as a stock they continue to like, maintaining a Buy rating and $235 price target on the name. The company expects to “benefit from increased trading volumes as BTC dominance declines and a stronger retail mix, increased betting revenue due to higher ETH/SOL prices and higher interest income from USDC gradually gaining traction as the short-term interest rates remain elevated.” ”
Bitcoin price prediction
Looking ahead, Compass Point said they continue to like the BTC/Crypto setup and “expect significant upside in fiscal 2024, with BTC exiting the year at levels above $85,000, driven by ETF inflows exceed the available supply on the exchanges.”
The company highlighted that the previous BTC cycle low was around $16.5k at the end of November 2022.
“Since then, the BTC price has increased 3.3x and is currently around $55,000,” Compass Point added. “Overlapping returns from previous 3-year cycles from the troughs show a strong correlation, which would indicate a significant ongoing uptrend if these trends were to continue before peaking sometime in 2H25 or early FY26. “
Compass Point analysts acknowledged that interest rates have not been this high in previous cycles. Therefore, they assume that “absolute returns are unlikely to be that high.”
However, they state that “the cycles have rhymed so far.” Until trends suggest otherwise, the company continues to expect “strong BTC price increases post-halving, which historically have been strongest in the first year post-halving before tapering off.”
Elsewhere, analysts at Bernstein said in a recent memo that the crypto bull market is becoming broader, with the Bitcoin bull market led by consistent ETF inflows. The company said that the Bitcoin halving is scheduled around April 20, 2024 and the price of the cryptocurrency will historically break out after this event.
This time, Bitcoin price action looks stronger ahead of the halving and will likely lose momentum for the rest of the year in our view,” they wrote. The institutional narrative led by Bitcoin ETFs is driving demand, and with Bitcoin being the reflexive asset, we expect a higher price to lead to higher ETF inflows, leading to new highs in 2024.”
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