Reasons Bitcoin Price Could Reach IDR 1.5 Billion Next Year Tech – 6 hours ago

Jakarta, CNBC Indonesia – Executives in the cryptocurrency industry are busy saying the value of Bitcoin will rise like crazy or what is termed a ‘bull run’. In fact, many predict that the value of Bitcoin will record a record high in 2024 above US$ 100,000 (Rp. 1.5 billion).

So far this year, Bitcoin has gained more than 120%. This trend is predicted to continue next year.

“It seems like [2023] was a year of preparation for a bull run that has yet to occur. “Sentiment is very optimistic for 2024 and 2025,” said Pascal Gauthier, CEO of Ledger, quoted from CNBC International, Tuesday (5/12/2023).

The highest Bitcoin value so far was recorded at almost US$ 69,000 in November 2021. Since then, the crypto industry has been in free fall because it was hit by continuous issues and incidents.

Starting from coins and projects that went bankrupt, to crypto officials who stumbled upon legal cases and imprisoned. One example is FTX, which was once the largest crypto trading service.

FTX collapsed along with its founder, Sam Bankman-Fried, who was sentenced to 100 years in prison after being found guilty of 7 fraud and criminal cases.

In addition, Binance founder Chengpeng Zhao was also found guilty and stepped down as CEO as part of a US$ 4.3 billion deal with the US Department of Justice (DOJ).

The crypto industry took a hit as public confidence in the future of digital currencies fell. However, according to Lightspark CEO, Dava Marcus, these two cases have been resolved and the public will return to focus on the function of digital currency in the future.

“In my opinion, after we all get out of the speculative phase, people will then focus more on digital currency technology and the various problems that can be solved thanks to that technology,” said Marcus.

For your information, Marcus is the former leader of a Facebook-like stablecoin project called ‘Diem’ which failed. Now he is preparing the technology to improve Bitcoin as a payment network.

Currently, investors are focused on seeing positive developments in cryptocurrencies. One of them is industry enthusiasm regarding the permission of Bitcoin as a mutual fund (exchange-traded fund/ETF) instrument which will soon be released.

This could spark interest among traditional investors who previously did not believe in the future of crypto.

“In my opinion, ETFs mean Bitcoin will become mainstream. This is something to look forward to,” said Gauthier.

Furthermore, what supports positive sentiment is the Bitcoin ‘halving’ which has a cycle of once every 4 years. It is scheduled that the next halving will occur in May 2024.

Halving is a phenomenon that occurs when Bitcoin miners harvest their mining output and it is cut in half. As a result, Bitcoin supply will be limited to ‘only’ 21 million coins. Usually this factor makes investors motivated to get Bitcoin.

“A number of market players are expecting a rise some time after the halving, but considering the ETF news, we could make a move before the halving so most investors will wait. This could cause a big price increase,” said CoinDCX VP, Vijay Ayyar.

Bitcoin Prediction to Reach IDR 1.5 Billion in 2024

The target for Bitcoin’s value to reach US$ 100,000 in 2024 was initially announced by Standard Chartered last week. The banking giant said Bitcoin’s rise will be driven by ETF clearance.

Matrixport, which is a crypto financial services firm, released a report predicting the value of Bitcoin will reach US$ 63,140 in April 2024 and US$ 125,000 by the end of next year.

“Based on our inflation model, the macro environment is expected to remain a strong driver for crypto. Another drop in inflation is expected to prompt the Federal Reserve to start lowering interest rates,” Matrixport said in its report.

“Combined with geopolitical currents, this healthy monetary support will push Bitcoin to new highs in 2024,” he explained.

Some people believe that monetary policy will support the development of Bitcoin, which has been seen as a high-risk asset. Meanwhile, many also consider Bitcoin to be a ‘safe haven’, namely a safe asset for placing money in the midst of uncertain geopolitical conditions.

Gauthier said it was possible for Bitcoin to reach US$ 100,000 in 2024, but he did not provide detailed predictions.

“What I see is strong fundamentals,” he said.

[Gambas:Video CNBC]