Analysts Remain Bullish on Crypto for 2024 as Bitcoin Dips Below $59,000
Bitcoin failed to reclaim its $60,000 price tag on Sunday after climbing to just above that figure a day prior, even as investors drove broader market indices back toward record highs on Friday.
The world’s largest crypto by market capitalization rose to just above $60,330 on Saturday but has since fallen 1.7% to around $58,646, CoinGecko data shows.
Despite the indecision in crypto, some analysts and investment trading desks remain optimistic for the remainder of the year.
“We remain constructive and bullish into year-end,” QCP Capital wrote in an investment note late Friday. “One particularly encouraging factor is the market’s resilience to various ‘supply-shock’ headlines this week for both Bitcoin and Ethereum.”
Crypto continues to face several headwinds for the remainder of 2024, including geopolitical tensions in the Middle East and uncertainty over the next U.S. president.
However, according to Ryan McMillin, chief investment officer at crypto fund manager Merkle Tree Capital, Bitcoin’s indecision is less concerned with the macroeconomic climate and more with market concerns over Mt. Gox distributions to creditors.
Speculation over the distribution of coins has led to the price of Bitcoin falling in recent weeks, as traders typically anticipate future selling when massive stashes of Bitcoin are moved.
The Mt. Gox estate, overseeing the distribution of coins from creditors affected by a decade-long hack of the defunct exchange, still holds close to $2.7 billion worth of Bitcoin, according to data tracked by Arkham Intelligence.
“This could be more of a seasonal thing, too, McMillin told Decrypt. “August and September are typically weak months for Bitcoin, and we might be feeling the low liquidity summer period.”
Macro is undoubtedly “moving in the right direction,” McMillin added, projecting a similar push higher for the asset like that experienced almost a year ago when it broke above $40,000 for the first time in 17 months.
The investment head said that, in that instance, the crypto market could see six months of consolidation through to the beginning of 2025, followed by a “strong six-month rally” to new highs.
It comes as major U.S. indices rose higher on Friday, with the S&P 500 rising 0.2%, the Nasdaq up about 0.1%, and the Dow Jones Industrial Average edging 0.24% higher.
