Will the Price Keep Rising?
Analysts believe the prices of bitcoin will continue to rise in 2024. “We expect prices to continue to go even higher this year,” a team at Deutsche Bank led by economist Marion Laboure said, citing a few reasons.
The first, as quoted in Barron’s, is spot Bitcoin exchange-traded funds (ETFs), which were approved in the US in January and have sparked the latest leg of the crypto rally. These funds buy and hold Bitcoin itself, and as such their inflows can have a mechanical impact on prices.
Another is that the US economy could also catalyse more crypto gains, according to Deutsche Bank, with strong economic performance and a surge in the largest tech stocks like Microsoft and Nvidia.
“As central banks start cutting interest rates from the decade-high levels seen in 2022, this is expected to fuel rising risk appetite and increased market liquidity,” wrote Laboure.
Even though the cryptocurrency market is performing well, investors need to watch out for volatility as it can quickly evaporate money.
