As 2024 draws to a close, the cryptocurrency market has been buzzing with one dominant narrative: the impressive performance of Bitcoin in the last quarter of the year. A renowned blockchain analytics firm has recently shared unique insights into the factors that could influence Bitcoin’s price trajectory, sparking discussions among investors and enthusiasts alike.
Can Bitcoin Price Reach $100,000 By December 2024?
According to an insightful report from CryptoQuant, Bitcoin is poised to enter a phase of positive seasonal performance. Historically, the fourth quarter of a halving year has been bullish for Bitcoin, and 2024 seems to be following this trend. The on-chain analysis by CryptoQuant highlights that Bitcoin has experienced significant gains in the last quarters of previous halving years, with increases of 9% in 2012, 59% in 2016, and a remarkable 171% in 2020.
So far in 2024, Bitcoin’s value has risen by 46.79%, and CryptoQuant projects an ambitious year-end target ranging from $85,000 to $100,000. This potential Q4 rally could result in an annual performance increase of between 100% and 138%. However, several critical factors must align to enable this bullish scenario, with demand being a pivotal element. Over the past few months, demand has remained mostly stagnant, presenting a challenge for Bitcoin’s price ascent.
Analyzing Bitcoin Demand Trends
CryptoQuant’s data reveals fluctuating Bitcoin demand, with figures swinging between -23,000 to +69,000 BTC since July. For perspective, demand peaked at an impressive 498,000 BTC in April, when Bitcoin’s price hovered around $70,000. This volatility suggests that a resurgence in demand could significantly impact Bitcoin’s price trajectory as we approach the end of 2024.
Rising Demand for Bitcoin from US Spot ETFs
Encouragingly, demand from United States spot exchange-traded funds (ETFs) has been on the rise in recent weeks. CryptoQuant’s analysis shows a shift from net selling of 5,000 BTC in early September to net buying of 7,000 BTC by the end of the month. This upward trend is notable compared to the first quarter of 2024, when US spot ETFs purchased nearly 9,000 BTC daily, propelling Bitcoin to a record high of $73,737 by mid-March.
If this trend continues, investors could witness Bitcoin revisiting its all-time high or even surpassing it before the year concludes. Currently, Bitcoin is trading just above the $62,000 mark, reflecting a 2.3% increase in the last 24 hours.
Conclusion: Bitcoin’s Path Forward
The potential for Bitcoin to reach new heights by the end of 2024 hinges on several factors, including a resurgence in demand and continued interest from institutional investors via ETFs. As the market evolves, these elements will play a crucial role in shaping Bitcoin’s future price movements. Investors and market watchers will undoubtedly keep a keen eye on these developments, eager to see if Bitcoin can achieve the much-anticipated $100,000 milestone.
