Bitcoin has held up firmly throughout 2024 and trades above the $100,000 mark.
Analysts are generally bullish for the cryptocurrency, with many predicting immediate price targets of $115,000 - $200,000.
MicroStrategy’s recent addition to the Nasdaq index is expected to create a positive loop for the cryptocurrency as more demand surfaces.
The miners have toned down their selling massively, with a 91% drop from January 2021.
Cycle top predictions for Bitcoin range between $175,000 and nearly $300,000
In 2024, Bitcoin experienced ups and downs, the launch of the U.S. spot ETF market, a steady climb from below $50,000, and a blast past the $100,000 mark twice.
There are only a few days left in 2024, and speculation is mounting about what will happen to the flagship cryptocurrency between now and 2025.
So far, analysts have made bullish predictions, with market developments painting a pretty picture for the cryptocurrency's future.
At the end of the day, one fact remains glaring—Bitcoin is positioned for a strong finish to 2024 and a promising start to 2025.
The Software company turned Bitcoin giant, has become a central player in Bitcoin’s rise.
MicroStrategy’s recent inclusion in the Nasdaq100 index was driven by a staggering 500% increase in its share value this year.
Since 2020, the company has amassed over $40 billion worth of Bitcoin, and its market cap surged from $1.31 billion to nearly $100 billion by the end of 2024.
In essence, MicroStrategy is now more valuable than half the members of the Nasdaq 100.
On Bitcoin’s corner, analysts believe that MicroStrategy’s inclusion into the index could create a positive cycle between the two, where the increased demand for the company’s shares could translate to more Bitcoin purchases.
Therefore, Bitcoin’s price could continue to rise—possibly to infinity.
Another positive signal for Bitcoin is the rate of inflows into the U.S.-based spot Bitcoin ETFs.
According to data from Soso Value, these funds experienced a $5 billion increase in cumulative inflows between late November and mid-December 2024.
Bitcoin ETFs' Cumulative total inflow
As of writing, these funds have hit an all-time high of $35.6 billion in cumulative total inflow.
In more positive news, institutional investors are also ramping up their Bitcoin holdings.
For instance, in early December, MicroStrategy purchased an additional 21,550 BTC at an average price of $98,783 per Bitcoin.
MARA Holdings, another Bitcoin company in the mining sector, added 11,744 BTC to its reserves.
Some of these major developments are complemented by government-level interest in the cryptocurrency, including Senator Cynthia Lummis's proposal for a U.S. strategic Bitcoin reserve of 1 million Bitcoin.
Bitcoin’s price targets have become a hot topic among analysts on the internet.
Most of these experts have projections ranging from $173,000 to $461,000.
For example, Crypto analyst Danny Marques noted that Bitcoin has historically reached key Fibonacci levels in post-halving bull runs.
In particular, the analyst believes the cryptocurrency usually hits a minimum target around the 1.618 Fibonacci retracement level.
This pattern suggests that Bitcoin could trade between $173,646 and $461,135 as a cycle top.
Another Bitcoin researcher, Sminston With, shared a similar report on Twitter, in which he analyzed cycle tops from years like 2011, 2013, and 2017.
The analyst reported that he conducted an experiment called the "exponential decay fit" to predict the Bitcoin high for 2021.
Interestingly, this experiment predicted a high of $65,732.72 for the previous cycle, where the actual peak price was $64,682.47.
At the end of the day, if macroeconomic conditions remain favorable and With’s analysis is anything to go by, Bitcoin could come incredibly close to the $300,000 mark when the cycle top hits in 2025.
The Bitcoin miners aren’t left out of the equation.
Unlike previous cycles where miners sold significant amounts of Bitcoin to cover operational costs, the trend has shifted toward “diamond handing” Bitcoin.
Data from On-Chain College, in a tweet, shows that the miners’ net position change has dropped by 91% compared to January 2021.
Bitcoin miners’ net position change
This reduction in selling pressure has strengthened Bitcoin’s price and helped keep it above key support levels.
From a technical perspective, Bitcoin appears eager to continue upwards, with immediate targets between $115,000 and $126,500.
Analysts continue to note that Bitcoin has consistently remained above the $95,000 mark since November, which means that investors are displaying robust buying pressure.
Send it to $110,000
For example, a Crypto analyst, V, says that Bitcoin is currently choppy on the fourth wave but could be eyeing a push towards the $115,000 - $200,000 mark.
Titan of Crypto, another independent analyst, mentioned that Bitcoin's recent break above the "power law corridor" is a historically bullish signal.
The cryptocurrency could be eyeing higher targets by the end of 2024.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.