Bitcoin to Resume Its Bull Run, To Reach $100,000 by End Of 2024

2024 started with an incredible upswing for crypto tokens, like Bitcoin (BTC) and Ethereum (ETH), creating enthusiasm among digital asset users.

However, Bitcoin’s anticipated Bull Run is not going as expected. As of August 31, 2024, BTC price is currently trading at $58,872.26, representing a 1.16% decrease in the last 24 hours, down 2.89% in the last 7 days, and an 11.59% decrease in the last 30 days. It is currently trading below the $63,500 support level, which it had held in the past few days.

The current decline can be attributed to macroeconomic pressure and reduced activity of the Bitcoin network. The US home price increase outpacing inflation and wages is adding pressure to the economy ahead of the election season.

Declining Bitcoin network usage due to a decreased investor interest is also another cause of the current BTC price plunge. In the last two months, the number of BTC active addresses has reduced to their lowest levels, signaling decreased retail activity. Although institutional investors and whales could be on the buying spree, data shows that there is a decreasing adoption by the broader audience.

Why Rajagopal Feels Optimistic

Crypto enthusiasts are questioning how much further Bitcoin value might drop if it fails to find its $61,000 support levels. Cryptocurrency experts believe that if BTC maintains the $45,000 level and above, it could surge to $60,000 by the end of the year.

Rajagopal Menon, the vice president of India-based cryptocurrency exchange WazirX, believes that, amid current consolidation, Bitcoin is eyeing a breakout. Bitcoin eyes to rise past the $60,000 mark, before it enters the “parabolic phase” of another bull cycle, potentially pushing towards the $100,000 mark by the end of 2024. According to Rajagopal, if Bitcoin successfully breaks out from this level in the next few weeks, the flagship cryptocurrency could propel its way to $90k-100k. The $90,000 threshold is a significant milestone, as it is logical for BTC to pause around 90k, potentially surging above the level but hovering below 100k.

Despite Bitcoin losing its steam to soar to greater heights, Perplexity AI, an AI-powered bot, recently stated some factors that could propel the token to experience another bullish trend by the end of the year.

Regulatory developments and market sentient

In March, Bitcoin experienced a massive price rise due to its tremendous demand. The recent Bitcoin halving and approval of BTC ETFs led to increased optimism that the 2024 bull run would be remarkable and could eventually trigger the crypto to surge to the $100,000 target.

While Bitcoin reached a new all-time high of $74,000 in March, it experienced a price decline in May and early June and consequently dropped under $50,000 in early August.

According to Perplexity AI, Bitcoin could overcome the current slowdown on the condition that overall investor confidence and market sentiment improve.

On the other hand, Perplexity AI admitted that global regulators have continued to bring in tighter oversight of crypto assets across the world. The AI bot is optimistic that things could change after the upcoming US elections, especially if a pro-crypto candidate enters the White House.

Adoption and the Global Economy

Perplexity AI also believes that continued growth in Bitcoin adoption for transaction purposes and its integration into financial services and products could create a robust foundation for a bullish trend. 

Lastly, the AI chart acknowledged that macroeconomic conditions, like interest rates and inflation, have historically affected the entire cryptocurrency market. The AI bot believes that a favorable economic condition could trigger an increased interest in alternative investments, like Bitcoin, to experience another bull run.