Bitcoin Potentially Reaches IDR 620 Million Per Coin In 2024, This Is The Motivater Factor!

Causes of rising Bitcoin prices. (Photo; Doc. Pexels)

JAKARTA - Bitcoin (BTC), the world's largest crypto asset by market cap, is again showing impressive performance with the price of BTC rising 2.55% to 38,678 US dollars (Rp598.5 million) on Monday, December 4, 2023. The price of BTC is currently trying to penetrate the level of 40,000 US dollars (Rp620 million), which is an important psychological level for investors.

There are several factors that could trigger a massive increase in 2024, including cut interest rates, Bitcoin halving, and ETF approval. One of the bullish indicators that emerged recently was the exit of a large number of coins from centralized exchange (CEX).

According to Glassnode data, investors have withdrawn more than 37,000 BTC, equivalent to US$1.4 billion (Rp21.6 trillion), from crypto exchanges since November 17, 2023. The exit of assets from crypto exchanges shows a trend of investors choosing direct storage of their coins, instead of selling them in the market. This exit also reflects strong demand and reduced selling pressure, as optimism surrounding the launch of exchange-traded funds (ETF) in the United States.

ETF is a financial product that tracks certain asset prices, such as stocks, bonds, or cryptocurrencies, and can be traded on stock exchanges. Bitcoin ETF is expected to increase Bitcoin adoption and liquidity, as well as attract institutional and retail investors who seek exposure to crypto assets without having to buy and store them directly. Several Bitcoin ETF applications have been submitted to the US Securities and Exchange Commission (SEC), but no one has received approval to date.

In addition to the ETF factor, there are also other factaries that can support the increase in Bitcoin prices by 2024, namely cutting interest rates by central banks around the world. Interest rate cuts can reduce interest rates, such as bonds, and encourage investors to look for high-risk assets, such as stocks and cryptocurrencies. Interest rate cuts can also weaken the value of fiat currencies, such as US dollars, and increase Bitcoin purchasing power.

Another factor that can affect the price of Bitcoin by 2024 is Bitcoin halving, which is the process of reducing the number of new Bitcoins created every 10 minutes in exchange for miners or miners verifying transactions on the network.

Bitcoin halving occurs once every four years, and the latter occurs in May 2020, when miners' rewards decrease from 12.5 BTC to 6.25 BTC per block. The next Bitcoin halving is expected to occur in May 2024, when miners' rewards will decrease to 3.125 BTC per block. Bitcoin haloing can increase Bitcoin's scarcity and drive price increases, as Bitcoin's offerings are only reduced while demand remains high.

With these factors, it is possible that Bitcoin will increase in 2024, and may reach its new high price level (ATH), as reported by Cryptoslate. However, there are also risks and challenges that could hinder the rise in Bitcoin prices, such as strict regulations, competition from other cryptocurrencies, and high volatility. Therefore, investors must be careful and do research before investing in the crypto market.