Analysts have made some shocking predictions about Bitcoin for next year.
2024 for a strong year for the cryptocurrency as it hit a huge milestone when it passed the $100,000 mark.
Bitcoin saw a surge in its value after Trump’s presidential win in November and last week its value hit a new record of over $108,000.
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Now analysts have made their predictions for what the new year will have in store for the crypto.
Digital asset manager Bitwise had previously predicted that its value would increase to $200,000.
Now, they reckon it’ll soar to a whopping $500,000 but it all depends on one thing - whether the federal government decides to buy a million Bitcoin as part of a ‘strategic Bitcoin reserve’.
Trump has been vocal about his support for the idea but it is unclear how much Bitcoin the government would hold.
Analysts over at Standard Chartered agree with those at Bitwise on how the crypto will increase in value over the next 12 months.
However, not everyone shares the same opinion.
VanEck analysts do believe that Bitcoin value is set to increase but they reckon it’ll only reach highs of $180,000 next year.
Time will tell as to whose expectations come true.
El Salvador has been making headlines recently after becoming the first ever Bitcoin nation.
The country’s president, Nayib Bukele was criticized by the International Monetary Fund (IMF) for having some very crypto-friendly policies.
Bitcoin was officially made legal tender in the country in 2021 but Bukele has since scaled back on some of his policies regarding the crypto in order to secure a $1.4 billion loan deal with the IMF.
The IMF said in an announcement: “The potential risks of the Bitcoin project will be diminished significantly in line with Fund policies.
“Legal reforms will make acceptance of Bitcoin by the private sector voluntary. For the public sector, engagement in Bitcoin-related economic activities and transactions in and purchases of Bitcoin will be confined.”
In a post on Facebook, Bukele had celebrated the rise in Bitcoin value after Donald Trump’s presidential win last month.
He wrote: “BITCOIN IS OVER $100,000.00! Thank goodness, our country's Bitcoin reserves are now worth 127.30% more than we pay for them, meaning an increase of more than $344 million.
“This proves, once again, that the opposition lied by instilling fear in the population about Bitcoin.”
The IMF has warned the country that there are ‘large risks associated with the use of Bitcoin on financial stability, financial integrity and consumer protection’.