- As the fourth quarter of 2024 approaches, analysts expect Bitcoin and the broader cryptocurrency industry to continue to grow, driven by institutional adoption and more favorable market conditions.
- One analyst says key indicators show bitcoin prices could rise in October, driven by institutional buying and a changing regulatory environment, with new highs expected to be between $58,000 and $72,000.
As we approach the fourth quarter of 2024, some analysts predict that the price of Bitcoin and the broader cryptocurrency market will continue to grow, driven by institutional adoption and macroeconomic factors.
“Against the backdrop of macro shifts and institutional adoption, digital assets are poised to continue to grow in the fourth quarter as sovereign balance sheets come under pressure and investors seek long-term hedges such as Bitcoin,” Gabriel Selby, chief research analyst at CF Benchmarks, said in a note to The Block. Ryan Lee, chief analyst at Bitget Research, is similarly bullish on Bitcoin as it heads into the final quarter. “Bitcoin is expected to outperform September in October, with a target price range of $58,000 to $72,000,” he said. Lee pointed to several compelling signs in the derivatives market, including multiple negative funding rates for Bitcoin futures throughout September and the Fear & Greed Index hovering in the “Extreme Fear” zone. “Historically, these factors have often preceded significant rallies,” he said.
Lee added that institutional investors will be a big driver of this growth. "MicroStrategy continued to sell bonds in September to buy more Bitcoin, and Bitcoin exchange-traded funds (ETFs) continued to see net inflows following the rate cut. This shows that institutions are optimistic about the market outlook. As institutional buying continues, Bitcoin is likely to break through previous highs," Lee said.
Changes in the crypto environment in the fourth quarter
Selby noted that the U.S. regulatory landscape could change significantly after the Nov. 5 presidential election, creating a favorable environment for cryptocurrency innovation. “We see conditions that could increase investor confidence and drive capital formation,” he said.
Looking ahead, Selby identified several trends that could accelerate cryptocurrency adoption, particularly on the Ethereum network. “Layer-two scaling solutions are emerging to meet the growing demand for Ethereum blockspace, while traditional financial institutions explore tokenizing real-world assets on Ethereum,” Selby said, adding the prospect of crossover with another technology that is attracting investors. “The emergence of generative AI and the resulting demand for GPU computing power will benefit the Decentralized Physical Infrastructure Network (DePIN), democratizing access to high-quality computing resources.”
In 2024, BlackRock launched a tokenized money market mutual fund on the Ethereum network. Selby noted that this development marks only the beginning of the potential for tokenized assets to merge with decentralized finance (DeFi), allowing stocks, bonds, and real estate to be used as collateral or traded on decentralized exchanges.
