Bitcoin price predicted to hit $350K, what are the driving factors?

Bittime - Bitcoin is back in the spotlight with predictions that the price of this digital asset could reach $350,000. 

Not only has this prediction caught the attention of investors, but it has also sparked a discussion about the factors driving Bitcoin's price surge.

In this article, we will discuss the reasons behind this projection, including supply dynamics, increased institutional investment, and the influence of the halving event.

Why is Bitcoin Price Predicted to Reach $350K?

The prediction that Bitcoin could reach $350,000 is not without merit. Several key factors support this projection, ranging from high mining fees to a growing trend of investment.

Also read: Bitcoin Drops: SOPR Indicator Shows Buy Signal

1. Bitcoin Mining Costs and Market Value

One of the main factors that support Bitcoin price predictions is the mining cost. Currently, it takes about $70,000 to mine one Bitcoin.

Since this digital asset has a limited supply, mining fees are often an important indicator in determining market value. If the cost of mining continues to increase, the value of Bitcoin will most likely follow suit.

2. Increased Institutional Investment

The surge in institutional investment is one of the biggest factors driving the price of Bitcoin. Large corporations like BlackRock, MicroStrategy, and Fidelity have invested billions of dollars in Bitcoin, signaling their confidence in the asset's long-term growth.

This kind of activity creates huge demand, which could eventually push the price to the $350,000 level.

3. Bitcoin Supply Dynamics

With the total supply capped at 21 million coins, Bitcoin's scarcity is an attraction in itself. To date, almost 20 million Bitcoins have been mined. In addition, the halving events that occur every four years further reduce the production rate of new Bitcoins.

In April 2024, the block reward for miners was reduced to 3.125 BTC, reinforcing the scarcity of this asset. The combination of scarcity and growing demand creates the potential for significant price increases.

4. Impact of Halving Events on Bitcoin Price

Historically, Bitcoin price tends to spike after a halving event. Halving reduces the number of new Bitcoins entering the market, thus increasing its scarcity.

After the 2024 halving, many analysts believe that the Bitcoin price will rise significantly in the next few years, given the similar pattern of previous halvings.

Also read: Will Bitcoin Rise Again? Analysis from Glassnode

Bitcoin Market Predictions and Sentiments

Bitcoin price predictions of up to $350K are also supported by optimistic sentiments from well-known experts and investors. Although the Bitcoin market is notoriously volatile, many see the price drop as an opportunity for accumulation.

One example is investor Robert Kiyosaki, who recently called the Bitcoin price drop a “great discount” to add to his holdings.

Conclusion

Bitcoin's predicted price break of $350K is supported by various fundamental factors, such as high mining fees, increased institutional investment, and the impact of halving. However, volatility remains one of the main challenges.

For those looking to invest in Bitcoin, understanding these factors can help you make more informed decisions.

FAQ

What makes Bitcoin price predicted to reach $350K?

Bitcoin price is predicted to reach $350K due to factors such as supply scarcity due to halving, high mining fees, and increasing institutional investment from large companies such as BlackRock and MicroStrategy.

When can Bitcoin reach a price of $350K?

There is no exact time when Bitcoin will reach $350K. However, many analysts believe that historical trends such as post-halving price increases and increasing institutional adoption could accelerate the price milestone.

What are the main risks of investing in Bitcoin?

The main risks of investing in Bitcoin include high price volatility, uncertain regulation, and potential loss of assets if digital security is not guaranteed. Investors are advised to do their research and only invest funds that they are prepared to risk.

How to Buy Crypto on Bittime

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Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference

en.coin-turk.com, Jeremie Davinci Predicts Bitcoin Could Reach $350,000, accessed on January 13, 2025.

Author: AWW