Analysts see bitcoin poised for breakout in Q4 as institutional demand and innovation fuel crypto surge

Quick Take

  • As we approach the fourth quarter of 2024, analysts anticipate continued growth for bitcoin and the broader cryptocurrency sector, fueled by institutional adoption and more favorable market conditions.
  • Key indicators suggest a potential price increase for bitcoin in October, with expectations of a new ranged between $58,000 and $72,000, driven by institutional buying and an evolving regulatory landscape, an analyst said.

As the fourth quarter of 2024 approaches, some analysts predict continued price growth for Bitcoin and the broader cryptocurrency market, driven by institutional adoption and macroeconomic factors.

"Amid macro shifts and institutional adoption, digital assets are poised for continued growth in Q4, as sovereign balance sheets face pressure, investors will seek long-term hedges like bitcoin," CF Benchmarks Lead Research Analyst Gabriel Selby said in a note sent to The Block.
 
Ryan Lee, Bitget Research Chief Analyst, is equally bullish on bitcoin’s trajectory heading into the final quarter. "The expected performance of bitcoin in October is anticipated to surpass that of September, with a target price range of $58,000 to $72,000," he said. Lee pointed to several compelling signs from the derivatives market, including multiple instances of negative funding rates in bitcoin futures throughout September, coupled with the Fear & Greed Index lingering in the "extreme fear" zone. "Historically, these factors often precede significant rebounds," he said.
 

Institutional players, Lee added, are set to be a significant driver of this growth. "MicroStrategy continued to sell bonds in September to purchase more bitcoin, and bitcoin exchange-traded funds (ETFs) saw continued net inflows following interest rate cuts. This indicates that institutions are optimistic about the market outlook. With ongoing institutional buying, bitcoin is likely to break previous highs," Lee said.

Changing crypto environment in Q4

Selby noted that the U.S. regulatory landscape could undergo significant changes after the November 5 presidential election, fostering an environment ripe for crypto innovation. "We see conditions fostering investor confidence and driving capital formation," he said.

Looking ahead, Selby identified several trends that could accelerate crypto adoption, particularly on the Ethereum network.
 
"Layer 2 scaling solutions are rising to meet the growing demand for Ethereum block space, while traditional financial institutions explore the tokenization of real-world assets on Ethereum," said Selby, adding the prospects of intersecting with another technology attracting investors. "The emergence of generative artificial intelligence and the accompanying demand for GPU computing power stand to benefit decentralized physical infrastructure networks (DePINs), which democratize access to high-quality computing resources."

In 2024, BlackRock launched a tokenized money market mutual fund on the Ethereum network. Selby noted that this development marks only the beginning of the potential for tokenized assets to integrate with decentralized finance (DeFi), enabling stocks, bonds, and real estate to be used as collateral or traded on decentralized exchanges.


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© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Brian McGleenon is a UK-based markets reporter for The Block. He has worked as a financial journalist and producer for multiple news outlets over the years, such as Fuji Television, The Independent, Yahoo Finance, The Evening Standard, and The Daily Express. Brian is also a screenwriter and producer with one feature film produced and one in development with Northern Ireland Screen. Apart from web3 and cryptocurrency developments, he is also interested in geopolitics, environmental issues, artificial intelligence, and longevity research. Get in touch via email [email protected].

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