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Bitcoin, Ethereum & Coinbase Starting 2024 in Fine Fettle

January 2, 2024
Ethereum / U.S. Dollar 6-month chart
Ethereum / U.S. Dollar (ETHUSD) 6-month chart

My three go-to cryptocurrency-related investments are Bitcoin, Ethereum and Coinbase Global and all three are starting the year with an impressive burst of strength. The Ethereum chart is shown above and we can see a golden cross buy signal on the moving averages, only the second since the crypto was created.

The chart looks broadly similar to that for Bitcoin.

Bitcoin / U.S. Dollar 6-month chart
Bitcoin / U.S. Dollar (BTCUSD) 6-month chart

So, where does AI think Bitcoin is going to go in 2024?

Artificial intelligence predicts crypto in 2024

The Big Bang of artificial intelligence exploded in late 2022 when OpenAI’s ChatGPT large language model AI became public. The ChatGPT boom prompted others to challenge its exclusive monopoly position, with Google creating Bard — which has become a serious contender — and Elon Musk launching his own beta platform, nicknamed Grok, in late 2023. Even more projects are in the pipeline.

As Microsoft founder Bill Gates mentioned in his end-of-the-year analysis on his personal blog, AI has become the solution for everything:

“AI can be used to improve access to education, mental health, and more. […] I’ve always been a firm believer in the power of innovation to offer every child an equal chance to survive and thrive. AI is no exception.”

Well, what if this precious wisdom is instead used to answer the fundamental questions of the crypto space? How will Bitcoin BTCUSD behave in 2024? How will a certain altcoin perform? When will institutional investment inject liquidity into the crypto markets? Is crypto AI merely hype?

All joking aside, Cointelegraph explores whether the AI genie that escaped from its bottle can offer valuable insights for 2024.

Will Bitcoin reach a new all-time high in 2024?

Google’s Bard found it “challenging” to predict the future price of a “volatile asset like Bitcoin,” but it eventually gave in and dared answer based on analysts’ views.

Based on its all-around knowledge, Bitcoin’s 2024 price high will peak at a new all-time high of around $120,000:

“Several analysts have predicted that Bitcoin could reach a price of $120,000 in 2024. These predictions are based on various factors, including the Bitcoin halving, growing adoption, regulatory clarity, and the potential for a spot Bitcoin ETF [exchange-traded fund] approval.”

Bard estimated BTC’s general price for 2024 to be between $50,000 to $120,000. The range is wide — an easy way to achieve a successful prediction. At the time of writing, BTC’s price is hanging around $42,000. Therefore, Bitcoin reaching $50,000 in 2024 is not a wild idea.

CoinTelegraph, 2 January 2024

Here is a cool way of making money. Ask AI what any security is going to do over the next 12 months and invest accordingly. Spoiler Alert: it may not be that easy, but when it comes to cryptos, AI’s best guess is probably as good as anyone else’s and at least the charts support the possibility of a strong advance.

The Bitcoin chart is going to look amazing if the Bitcoin price starts hitting new peaks.

Meanwhile, there is another way to invest in Bitcoin, which I have been advocating in earlier alerts, which is to invest in the crypto platform Coinbase Global.

Coinbase Global (COIN) 3-month chart
Coinbase Global (COIN) 3-month chart

There is a suggestion from this chart that Coinbase Global acts like a leveraged version of a crypto. Peak to trough the shares fell 93pc and have since rallied by 490pc. Both figures are significantly larger than the corresponding numbers from Bitcoin.

In a series of tweets on X (formerly Twitter), renowned cryptocurrency trader, Adrian Zduńczyk, laid out his predictions for the year, stating that Bitcoin will hit a new all-time high after the halving pushed onwards by several bullish catalysts. 

According to Zduńczyk, the estimated 12.8pc return for the S&P 500 in January will push capital inflows into Bitcoin. The analyst based this prediction on the sustained correlation between Bitcoin and the U.S. stock markets. 

Furthermore, Zduńczyk said Bitcoin could reach a new all-time high after the halving. Expected to happen in April, the halving will cut mining rewards and constrict the number of BTC entering into circulation. Historically, the halving has been marked with price pumps for Bitcoin. 

Meanwhile, the analyst pointed at the increased speculation around a Bitcoin spot ETF approval in the U.S. as a positive driver for BTC. Zduńczyk said approval could drive trillions of dollars into crypto and onboard several institutions. Crypto experts predict the U.S. Securities and Exchange Commission (SEC) will approve an ETF in the coming days. 

Coin Edition, 2 January 2024

Strategy: Buy Cryptos and/or Coinbase Global

But don’t expect a smooth ride. Every man and his dog is saying that the launch of Bitcoin ETFs, expected later this month, will trigger huge inflows of retail money into Bitcoin and other crypto assets. It would not be too surprising to see heavy profit-taking on the announcement.

However, if there are enormous fund flows into crypto ETFs, that itself will be taken very bullishly, and remember that the chart looks very positive.

Share Recommendations

  • Bitcoin BTCUSD: Buy @ $45,663
  • Ethereum. ETHUSD: Buy @ $2,398
  • Coinbase Global. COIN: Buy @ $173.92

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