Why analysts are bullish on Bitcoin in 2024

The Bitcoin (BTC) halving in April will only be one small part of why the cryptocurrency could see phenomenal gains this year, according to multiple industry analysts.

Next month, the Bitcoin halving will reduce daily BTC production by about 450 BTC from the current average daily amount of 900 BTC, investment researcher Lyn Alden told Cointelegraph.

However, Alden said the amount of supply cut pales compared to daily fiat flows in and out of crypto exchanges and Bitcoin exchange-traded funds (ETFs).

“In fact, inflows or outflows can easily exceed 10x of that value,” Alden said, adding that overall demand for Bitcoin is a “bigger factor than tightening supply.”

Historically, demand for Bitcoin has been more correlated with measures of global liquidity, such as the global broad money supply, Alden stressed, referring to a chart reflecting the BTC price versus global monetary supply (M2).

Bitcoin price vs. global liquidity (M2). Source: Look into Bitcoin

“So I think the halving is important, but it’s only one factor out of many that determines the occurrence and timing of a bull market. Various measures of global liquidity, HODL waves, and other catalysts combine to serve a larger role,” Alden said, adding:

“I am bullish for the next two years due to a combination of the halving, expectations for improved global liquidity, and the fact that so many coins have rotated to strong hands in the bear market, and so a relatively minor increase in demand can move the price quite a bit.”

10x Research CEO and head analyst Markus Thielen says the current rally is “undoubtedly on par” with the 2020 and 2021 bull market, which initially peaked in April 2021.

Referring to tools like quantitative analysis, Thielen has been bullish on the price of Bitcoin after the cryptocurrency crossed its multi-year highs on March 13, 2024.

Based on historical price changes and Bitcoin’s recent new highs, 10x Research projected that Bitcoin would reach $77,000 by early April and $99,000 by May 2024.

“When Bitcoin made a new high at $68,300, we saw a wave of intraday selling, but every attempt to push down prices has been met…

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