Analysts predict bitcoin’s growth to $ 60,000 this year

The influx of investors following the launch of spot bitcoin ETFs in the United States could trigger BTC’s growth to $ 60,000 this year. This is the opinion of some analysts.

According to CoinShares, a potential capital inflow to the bitcoin market of about $ 3 billion will help the market flagship grow significantly. «Although it is difficult to predict the exact scale of investment inflows after the ETF launch, a conservative estimate suggests that 10% of the current AUM, which is about $ 3 billion, could push the price of BTC to about $ 60,000.»

The trajectory of BTC $62,207.41 Bitcoin -2.38% Market capitalization $1.23 trillion VOL. 24 hours $1.28 billion is influenced by a combination of different macroeconomic factors. The most important role is played by monetary policy, especially in the United States. The rise in interest rates has led investors to shift their attention to alternative means of storing funds, such as US Treasury bonds. However, the expected decline in interest rates in 2024 may increase the attractiveness of bitcoin by contrasting it with traditional assets.

Theweakening appeal of the US dollar amid geopolitical shifts and changes in the supply chain further strengthens BTC’s position. Concerns about the sustainability of the US debt also hint at a slight decline in confidence in the dollar, which is positive for bitcoin.

The dynamics of inflation in developed countries, similar to the trends after 2009, suggests that the Fed’s rate is likely to be cut. This easing of monetary policy may increase the attractiveness of BTC in 2024 compared to US Treasuries, given the fixed supply of BTC.

Another factor is the growing correlation between bitcoin and traditional assets, driven by investors' desire for stability amid policy changes and market turmoil. It is expected that this trend will be temporary and that bitcoin will restore its characteristic inverse correlation with the US dollar this year.

There is a global trend toward regulating the crypto industry instead of banning it outright: countries such as Hong Kong and Japan provide guidance on working with stablecoins, and the EU is promoting a regulatory framework for the crypto asset market (MiCA).

As a reminder, the market leader fell to its lowest level in the last 7 weeks, reaching $ 39,500 on Tuesday. The 3% drop in bitcoin increased the size of the BTC pullback to 18.5% from the January 10 high of $ 48,500.