Bitcoin Analyst Says King Crypto Will Surpass $70,000 In 2024: 'ETF Juggernaut'

Analysts at investment firm Bernstein project a promising future for Bitcoin BTC/USD, anticipating its price to exceed the previous high of $69,000 and potentially reach $70,000 this year.

Despite not expecting a smooth, volatility-free ascent, the firm sees a favorable risk-reward balance for Bitcoin in 2024.

What Happened: Gautam Chhugani and Mahika Sapra, analysts at Bernstein, shared their insights in a note to investors: “While we are not calling for a straight volatility-free climb to all-time-highs, we are comfortable with the risk-reward for the rest of 2024 at today’s price.”

Following the launch of 10 Bitcoin spot exchange-traded funds (ETFs) in the US on Jan. 11, Bitcoin's price briefly touched $49,000 and is currently trading around $42,600.

Bernstein's report identifies the $42,000 to $43,000 range as a strategic entry point, offering a "no-regrets price with asymmetric upside."

They predict a 65% increase in Bitcoin's value, aiming for the $70,000 mark by year-end.

Also Read: Ethereum ETFs Have 60% Chance Of 2024 Launch, Says ETF Expert: Approval Is 'Path Of Least Resistance'

Why It Matters: The analysts attribute their bullish stance to four key factors:

1. ETF Inflows: Bernstein highlights the significant impact of ETF net inflows on Bitcoin's price. Last week alone saw inflows of approximately 19,000 Bitcoin. “The ETF juggernaut will continue to become material to price action,” the analysts stated, emphasizing the influence of finite supply and increasing demand on pricing

2. Advisor Network Responses: The firm notes that ETF issuers are receiving rapid and unprecedented responses from advisor networks regarding Bitcoin allocations in client portfolios, indicating a sustained demand source for Bitcoin.

3. Macroeconomic Conditions: The Federal Reserve's potential interest rate cuts, currently between 5% and 5.25%, could make savings less appealing and push investors towards risk assets like Bitcoin, which tend to thrive in lower interest rate environments.

4. Election Impact on SEC: A possible Republican victory in the US presidential election could lead to a change in SEC leadership, impacting crypto market dynamics. SEC chairman Gary Gensler has faced criticism for his strict approach to crypto regulation.

What's Next: The research note also sees the growth of Bitcoin's on-chain ecosystem, including developments like Ordinals and layer 2 solutions, as a positive indicator.

Read Next: Bitcoin Falls Below $43,000; Monero, Flare Among Top Losers

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