According to the latest report published by OKG Research Institute, Bitcoin’s price could reach $200,000 within 2024.
This prediction is based on various factors, including macroeconomic conditions, increasing institutional interest, and rising market liquidity.
The report highlights the Federal Reserve’s (FED) 50 basis point interest rate cut in September 2024 as a significant turning point for Bitcoin. This rate cut marked the end of the 525 basis point interest rate hike cycle that began in 2020 and provided additional liquidity to the market.
Bitcoin has benefited significantly from this increased liquidity, acting as both an asset linked to U.S. stock markets and a hedge against inflation. Moreover, fiscal stimulus policies under the Trump administration and Bitcoin-friendly regulatory measures are cited as factors supporting market growth.
Institutional Interest Reaching New Heights
OKG Research notes that as of 2024, Bitcoin is increasingly being adopted by institutional investors. Particularly after the approval of Bitcoin spot ETFs in January 2024, 5.63% of Bitcoin’s supply is now held within these ETFs.
The report points out that, as of November 2024, 17 major companies have adopted Bitcoin as a reserve asset. One notable example is MicroStrategy, which added 55,500 Bitcoins to its portfolio with a $54 billion purchase. OKG predicts these developments will accelerate Bitcoin’s institutional adoption and significantly boost its price.
The Road to $200,000
According to OKG Research’s estimates, Bitcoin’s market capitalization could be supported by $2.28 trillion in new fund inflows over the next year. These inflows could push the price to the $200,000 level. This forecast aligns with predictions from financial institutions such as Bernstein, BCA Research, and Standard Chartered.
