Bitcoin (BTC) Price Preparing To Hit $200K As It Breaches $70,000; Will It Reach $100K In 2024?

Bitcoin hit $69,500, which attracted massive bearish action that dragged the levels below $67,500

Bitcoin price surged past the crucial resistance of $69,500, hinting at an imminent breakout towards $70,000. However, the attention quickly shifted to the possibility of Bitcoin price reaching $100,000 in 2024 and whether this would mark the peak of the bull cycle.

Several factors have a significant impact on Bitcoin price, including demand and supply dynamics, institutional interest, and macroeconomic conditions. Let’s delve into each of these aspects to assess the likelihood of Bitcoin price reaching $100,000 in 2024.

1. Demand and Supply:

Historically, Bitcoin price has been largely influenced by the simple economics of demand and supply. When demand outstrips supply with minimal new Bitcoin creation, the price tends to rise. Conversely, if demand wanes and the supply chain experiences a large influx of Bitcoin, the price usually drops.

However, in the aftermath of the 2021 bull run, Bitcoin gained immense traction, leading to increased adoption and demand. As a result, a broader range of factors now impact the demand and supply of Bitcoin, ultimately affecting its value.

2. Open Interest Surges Past $40 Billion:

Open interest is a critical metric used to gauge the total outstanding derivatives contracts in options or unsettled futures. It provides insight into whether liquidity is flowing into or out of a contract, ultimately indicating trader interest in a particular token.

Bitcoin has consistently topped the charts in both spot and futures trading. Recent data reveals that Bitcoin open interest is surging as the price approaches the $70,000 mark.

3. Institutions Flock to Bitcoin:

One of the key factors that have been propping up BTC price is the entry of institutions into the crypto space. With the SEC’s historic approval of the spot BTC ETF, the market dynamics for Bitcoin have shifted significantly.

These ETFs currently hold approximately 5.398% of the total circulating supply of BTC, translating to over 1.1 million BTC, valued at over $75 billion. In just a few months, BTC ETF holdings have reached a million, with Blackrock’s IBIT alone holding over 375K BTC.

Moreover, countries like the U.S., the U.K., China, El Salvador, and a few others have been collectively holding over 2.5% of the total BTC in circulation. According to some reports, the war with Russia prompted Ukraine to legalize crypto accounts for receiving donations and currently holds over 46,000 BTC. While the accumulation by countries and private or public companies had a short-term impact on the price, the ETF accumulation has been the main driving force behind the price volatility.

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