Bitcoin forecast to rocket higher in 2024

Bitcoin trading 0.54 per cent firmer today, extending a more than 150 per cent surge since the month of January. As markets price in higher rate cuts from the US Fed next year, what will 2024 hold in store for Bitcoin? Christo de Wit, SA country Manager at Luno, shared his insights on the future of the cryptocurrency market in an interview with CNBC Africa. De Wit highlighted the impact of potential interest rate drops by the Fed on market liquidity and capital availability, which could bolster the crypto market in the coming year. He cautioned against relying solely on one factor to predict prices and emphasized the multifaceted nature of market dynamics. One significant factor shaping the crypto landscape is the awaited approval of the first spot Bitcoin ETF in the US. De Wit noted that the approval could bring crypto into the mainstream and enhance investor confidence. Moreover, a more structured regulatory environment globally, including in South Africa, has contributed to increased adoption and confidence in cryptocurrencies. The prospect of the SEC's decision on the Bitcoin ETF approval in January 2024 could further boost market sentiment. De Wit also pointed out the upcoming halving event in April next year, historically associated with price increases and renewed optimism in Bitcoin. Despite the volatility of cryptocurrencies, historical patterns suggest potential price growth following halving cycles. De Wit discussed the potential for Bitcoin to surpass its previous record high of $69,000, citing analysts' predictions of an imminent break above that level. He acknowledged the influence of recent industry setbacks, such as the collapse of FTX, on market dynamics and investor confidence. Looking ahead to 2024, De Wit expressed optimism for continued momentum in the cryptocurrency market, driven by regulatory developments, market liquidity, and investor sentiment. The outlook for Bitcoin in 2024 appears positive, with experts forecasting sustained growth and potential price milestones on the horizon.