- Investors, amidst the long-awaited Bitcoin halving, are expecting a significant rally to new all-time highs (ATH) in BTC price.
- Traditional financial giants like Standard Chartered are predicting Bitcoin to reach $50,000 by the end of this year and $120,000 by the end of 2024.
- IMF has raised its growth forecast for the United States in 2023 from 1.8% to 2.1% and for 2024 from 1% to 1.5%. Slower growth is expected for China and the Eurozone in 2024.
IMF has issued warnings about the future in the reports it released today: Will challenging conditions pose a hindrance to Bitcoin’s price?
IMF Warnings Could Hinder Bitcoin’s Rise
Investors, amidst the long-awaited Bitcoin halving, are expecting a significant rally to new all-time highs (ATH) in BTC price. Historical data shows that BTC price typically starts rising after the halving event. Analysts also anticipate significant upward momentum in Bitcoin as the halving date approaches.
Traditional financial giants like Standard Chartered are predicting Bitcoin to reach $50,000 by the end of this year and $120,000 by the end of 2024. Analysts believe that central banks, including the US Federal Reserve, will make changes to combat cooling inflation and change their monetary policies.
The International Monetary Fund (IMF) released the World Economic Outlook for 2024 on Tuesday, October 10th. IMF expects consumer prices worldwide to rise by 5.8% next year and recommends that central banks maintain tight monetary policies.
IMF expects inflation to remain high in some countries until 2025. Factors influencing growth include the tight labor market in the United States, global food and energy disruptions due to the pandemic, Russia’s attack on Ukraine, and other geopolitical events.
“Monetary policy should remain tight in most places until inflation is on a steady path to reach the targets. We are not there yet. We see the world economy crawling, not yet fully speeding up.”
IMF identified significant factors affecting growth this year as the pandemic, Russia’s attack on Ukraine, the fragmentation of the global economy, and central bank policy tightening. They set the growth forecast for 2024 at 2.9%, which is 0.1 points lower than this year.
Meanwhile, IMF raised the growth forecast for the United States in 2023 from 1.8% to 2.1% and for 2024 from 1% to 1.5%. Slower growth is expected for China and the Eurozone in 2024.
How Will Bitcoin Perform Against IMF’s Current Forecasts?
The crypto market has a significant event lined up for next year: the Bitcoin halving, expected to take place in April 2024. Prominent analysts and investors anticipate BTC price to hit a new ATH before the halving, but high inflation remains a significant concern.
Investors are also awaiting the SEC’s approval of a spot Bitcoin ETF, which could boost crypto prices. BTC price is currently trading at $27,485 and has been relatively flat. However, it has seen significant gains since the beginning of this year. Surprisingly, Binance CEO “CZ” has similarly predicted that Bitcoin’s price will hit multiple ATHs after the halving.
