- Adam Back believes that 2024 could mark a revival period for Bitcoin (BTC), predicting that the leading cryptocurrency could progress towards $100,000.
- Bitcoin’s block reward halvings are programmed events that occur every 210,000 blocks, reducing the block reward given to miners from 6.25 BTC to 3,125 BTC.
- Back stated, ‘They need money, and sometimes they sell good things because it’s liquid, and Bitcoin is super liquid. This happened with gold as well, and I think it’s a factor in Bitcoin for the past few years.’
Blockstream CEO Adam Back has revealed his expectations and predictions for Bitcoin’s revival period in 2024!
Adam Back Shares Bitcoin Predictions
Blockstream CEO Adam Back believes that 2024 could mark a revival period for Bitcoin (BTC) and predicts that the leading cryptocurrency could progress towards $100,000. In a recent interview, Back, a renowned cryptography expert and pioneer of the proof-of-work algorithm used in the Bitcoin protocol, said that Bitcoin is currently below the historical price trend line observed during previous halving events.
Bitcoin’s block reward halvings are programmed events that occur every 210,000 blocks, reducing the block reward given to miners from 6.25 BTC to 3,125 BTC. Back argued that the current price is lagging behind widely accepted projections, considering previous market cycles and the average trends of halving events. Various factors contributed to the decline in BTC’s price, observed in both traditional financial markets and the cryptocurrency space.
‘The last couple of years were like plagues and pandemics in the Bible. There was COVID-19, wars affecting monetary expansion and energy prices. Inflation prompts people to act, companies go bankrupt,’ explained Back. These market challenges had a profound impact on portfolio management and investment strategies. Investment managers had to navigate risks and losses, often leading to the sale of more liquid assets, including Bitcoin.
Back stated, ‘They need money, and sometimes they sell good things because it’s liquid, and Bitcoin is super liquid. This happened with gold as well, and I think it’s a factor in Bitcoin for the past few years.’ Looking ahead to 2024, Back mentioned that many macro events negatively affecting Bitcoin’s price have either diminished or been resolved. This is reflected in the price increase Bitcoin has experienced since November 2023.
‘The wave of contagion, companies exposed to Three Arrows Capital, Celsius, BlockFi, and FTX – mostly those have ended. We don’t think there are many more big surprises,’ said the crypto expert.
Back Still Believes Bitcoin Will Reach $100,000
Previously, the Blockstream CEO predicted that Bitcoin would reach $100,000 in the next market cycle, standing by this projection. He claimed that Bitcoin would have already reached this milestone if not for previous macro factors. Back also references the Bitcoin ‘stock-to-flow’ model developed by the well-known former institutional investor PlanB. This model indicates the potential upside for Bitcoin in 2024.
According to Back, the model shows that savvy Bitcoin investors historically bought BTC six months before a halving event and sold during significant price increases over the following 18 months. Back said, ‘People thought it was a bit crazy to claim we could bring it to $100,000 when it was around $20,000.’
The repeated observation of Bitcoin’s price reaching $44,000 in December 2023 seems to suggest that his initial prediction may not have been as exaggerated as some initially thought. Leading investors and market analysts have also emphasized the potential impact of the approval of various spot Bitcoin exchange-traded fund (ETF) applications by the U.S. Securities and Exchange Commission (SEC).
Senior ETF analysts Eric Balchunas and James Seyffart predict that these applications will be approved in early 2024. Michael Novogratz, co-founder of Galaxy Digital, anticipates significant institutional investment flows into BTC-backed products, a view shared by Back. He stated, ‘I think Bitcoin can reach $100,000 before the ETF and halving. But we shouldn’t underestimate the impact of the ETF.’
One of the fundamental reasons for this belief is that large fund managers like BlackRock and Fidelity are currently restricted from directly investing in assets like Bitcoin in certain market segments. Back concluded by saying, ‘If they manage an investment fund, there are rules about what they can buy, either forced from outside or as part of the fund, they usually have rules that they can buy things like publicly traded stocks and ETFs. They can’t invest in startups, they can’t physically buy precious metals. They can’t do anything.’
