Bitcoin could hit a new record high next year, said Bob Ras, co-founder of blockchain firm Sologenic. He cited the upcoming bitcoin halving, which is expected to reduce the mining rewards by half in May 2024, as a key factor that could lead to a supply shortage and a potential price surge. The previous halvings that occurred in 2012 and 2016 had led to significant price increases.
Ras also pointed out that the current banking crisis, along with expectations that the Federal Reserve will continue to ease monetary policy, could further boost the demand for Bitcoin as an alternative store of value. He noted that the recent rise of inflationary pressures could prompt investors to seek out assets that can protect against the eroding value of fiat currencies.
Moreover, Ras predicted that the increasing institutional adoption of Bitcoin and other cryptocurrencies could also contribute to the bullish outlook for the market. He noted that more and more institutional investors, including major banks and hedge funds, are allocating a portion of their portfolios to digital assets as a hedge against inflation and geopolitical risks.
However, Ras also cautioned that the cryptocurrency market is still highly volatile and unpredictable, and investors should be prepared for significant fluctuations in prices. He advised that investors should only invest what they can afford to lose and conduct their own research before making any investment decisions.
