- Industry analysts at Bitwise have unveiled predictions for the coming year.
- The predictions about Bitcoin and stablecoins are optimistic.
- Bitwise is still in the race for spot ETF approval.
With the bull market gradually returning, 2023 is rounding off a good note for the crypto industry, and market predictions for the new year are rolling in. From regulatory insights to price projections, investors and analysts are weighing in on expectations for 2024, particularly in light of market trends.
In line with this, crypto asset management firm Bitwise has unveiled a set of interesting industry forecasts that chart a very optimistic course for the coming year.
Bitcoin Will Set A New All-Time High, Stablecoins To Outperform Visa
On Wednesday, December 13, research analysts at Bitwise rolled out ten predictions for the 2024 crypto market, solidifying the asset class as the “native currency of the internet.”
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Leading is Bitcoin’s (BTC) prediction to double in price, reaching an all-time high of $80,000. The projection is grounded on Bitcoin’s performance over the years, surging by 128% and outpacing the returns of the likes of the S&P 500 (21%), gold (12%), and bonds (2%).
The research suggests increased Bitcoin demand, particularly with the imminent SEC approval of a spot ETF. This aligns with the expected reduction in Bitcoin supply due to the halving scheduled for the second quarter of 2024, resulting in a yearly $6.2 billion decrease in new bitcoins entering the market and, consequently, a reduction in asset inflow.
The anticipated ETF approval was also a focal point for the analysts. While the SEC’s stance on proposals remains undisclosed, Bitwise predicts that spot ETFs will capture 1% of the $7.2 trillion U.S. ETF market, totaling $72 billion within five years.
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Stablecoins are also projected to experience significant growth, potentially surpassing Visa in payments and remittances.
While the above will bring major developments to the industry in 2024, experts predict that the pending upgrade for the Ethereum blockchain will propel the industry even further.
Ethereum Blockchain Poised For Major Upgrade
Bitwise analysts predict that the Ethereum ‘EIP-4844’ upgrade will reduce the average transaction cost on the Ethereum network.
If successfully implemented, EIP-4844 can push the current average fee per transaction cost of $0.14 below $0.01, opening avenues for mainstream application and adoption.
Ethereum is also expected to generate as much as $5 billion in revenue as a global platform hosting multiple crypto applications.
Other predictions include a doubling of revenue for the crypto exchange Coinbase and the tokenization of assets by Wall Street.
On the Flipside
- The predictions offered by Bitwise analysts are speculative and come with no assurances.
- The possibility of Bitcoin reaching $80,000 hinges on numerous factors, extending beyond the approval of spot ETFs or the 2024 halving.
- Bitwise is one of the issuers awaiting a spot ETF approval.
Why This Matters
The report from Bitwise provides insight into how the crypto industry will likely fare in 2024 and the level to which the ecosystem may thrive.
Read more on the growing adoption of crypto by traditional institutions:
Deutsche Bank Forms New Alliance For Stablecoin Issuance
Binance and the SEC are still locked in their year-long legal battle. Read more:
Binance Slams SEC Bid to Fuel Lawsuit with $4.3B Settlement
