Fundstrat's Bitcoin Price Forecast: Potential Surge in Demand Before the 2024 Halving

As Bitcoin's 2024 halving draws near, Fundstrat provides an eye-opening price forecast considering new ETF launches and supply constraints.

Discover why they see BTC skyrocketing and the role BlackRock might play in this bullish wave.

Demand Increase and Supply Decrease Could Boost BTC's Price

Bitcoin (BTC) is expected to undergo its halving event around April 2024. Currently, many investors and analysts are discussing "post-halving bitcoin price predictions."

However, the U.S. investment fund, Fundstrat, projects that the BTC price might rise up to $180,000 before the halving.

This forecast, disclosed in an investor note in July 2023, cites the introduction of a "physical Bitcoin ETF" and "supply reduction due to the halving" as the main reasons behind the expected price increase.

Sean Farrell, leading the digital asset strategy at Fundstrat, suggests, "The daily demand for Bitcoin is roughly $25 million, almost equivalent to the daily mining reward.

Yet, this balance may significantly shift with the approval of a physical Bitcoin ETF."

Farrell further states that "with the launch of the Bitcoin ETF, the daily demand for BTC could reach $125 million."

As the BTC supply remains at $25 million, a supply shortage could drive up BTC's price.

Given the launch of the Bitcoin ETF, daily demand might spike to $125 million, but the daily supply remains just $25 million.

To achieve a balance between supply and demand, the price must rise. Based on equilibrium analysis, the settlement price before the halving in April 2024 could range from $140,000 to $180,000.

Furthermore, with the mining reward halving in 2024, the daily supply is predicted to drop to around $12 million, which is anticipated to propel Bitcoin's price upward.

BlackRock's Bitcoin ETF: The Next Big Thing?

Fundstrat anticipates that BlackRock's physical Bitcoin ETF, known as the world's largest asset management company, might become the "largest ETF in history."

The QQQ ETF, which tracks the Nasdaq 100 index, amassed $36 billion in its debut year following its launch in March 1999.

However, BlackRock's Bitcoin ETF, if approved, could break this record, becoming the most massive ETF launch ever.

Additionally, Fundstrat predicts that the "Bitcoin ETF could surpass the precious metals ETF market, which holds assets close to $230 billion," and adds, "It might eventually exceed the $300 billion category."

Many analysts project Bitcoin prices above $100,000 around the halving.

Notably, Blockware Solutions, offering mining-related services, believes that "BTC prices might reach $400,000 in the next halving cycle."