In recent weeks, the narrative surrounding Bitcoin’s strong performance in Q4 2024 has gained significant traction in the cryptocurrency market. Notably, a well-known blockchain analytics firm has provided distinctive on-chain insights regarding the future price movement of BTC.
Could Bitcoin Price Hit $100,000 by December 2024?
In a recent report, CryptoQuant indicated that Bitcoin is entering a phase of favorable seasonal trends, with the traditionally bullish Q4 yet to unfold. The firm emphasized that the leading cryptocurrency typically excels in the final three months of a halving year.
Data from CryptoQuant shows that Bitcoin experienced price increases of 9%, 59%, and 171% during the 2012, 2016, and 2020 halving years, respectively. So far in 2024, the cryptocurrency has seen a rise of 46.79%.
CryptoQuant has set an end-of-year price target for Bitcoin between $85,000 and $100,000. Achieving this price point would result in an impressive annual performance of 100% to 138% for the coin.
However, the blockchain analytics firm has pointed out that certain conditions must be met for Bitcoin to continue its bullish trajectory and possibly reach a new all-time high. A crucial factor mentioned is demand, which has largely been flat over recent months.
According to CryptoQuant’s data, Bitcoin’s demand has fluctuated between -23,000 and +69,000 BTC since July. For perspective, demand peaked at an impressive 498,000 BTC in April when the leading cryptocurrency was trading around the $70,000 mark. This implies that a renewed surge in demand could positively influence Bitcoin’s price in the latter half of 2024.
Increasing BTC Demand from US Spot ETFs
Fortunately, the demand for Bitcoin from spot exchange-traded funds (ETFs) in the U.S. has been gaining momentum recently. CryptoQuant’s data reveals that Bitcoin funds transitioned from net selling 5,000 BTC in early September to net buying 7,000 BTC by the end of that month.
In contrast, the U.S. spot ETF market purchased nearly 9,000 BTC on a daily basis during the first quarter of 2024, propelling Bitcoin to its current all-time high of $73,737 by mid-March. If this upward trend persists, investors may witness Bitcoin’s price revisit or surpass its previous record before the year concludes.
As of now, Bitcoin’s price is just above the $62,000 threshold, reflecting a 2.3% increase over the past 24 hours.
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