Bitwise anticipates Bitcoin (BTC) to exceed $80,000 in 2024, building on its remarkable performance in 2023, where it outpaced the S&P 500, gold, and bonds with a remarkable 128% increase. Ryan Rasmussen, from Bitwise, shared 10 bullish predictions for the 2024 cryptocurrency market, highlighting the swift growth of the stablecoin market among key themes in his December 13 post on X (formerly Twitter).
What are the Potential Catalyst for BTC Anticipated Growth?
Anticipating two key catalysts for Bitcoin’s value in the coming year. Firstly, the projected early 2024 launch of a spot Bitcoin ETF, potentially attracting substantial new investments from both institutional and retail investors.
The second trigger is the approaching Bitcoin halving event in April or May 2024, set to halve the annual influx of new Bitcoin into the market, thereby reducing the supply by an amount equivalent to $6.2 billion at current rates.
There are speculations about a potential influx of up to $100 billion into BTC markets upon regulatory approvals. However, ETF analyst James Seyffart remains skeptical, considering it an “overestimation of demand” and discussing the potential impact of such a substantial sum entering the markets.
Putting it in context, Seyffart highlighted that gold ETFs, present in the U.S. since 2004, currently hold around $95 billion in assets. Another projection from Bitwise suggests that Coinbase’s revenue will double, exceeding Wall Street estimates by at least tenfold, based on historical patterns of increased trade volumes during bull markets.Continuing the thread’s forecast, it predicts stablecoins will outpace Visa in settling financial transactions. The market cap of stablecoins, tied to various assets like the US dollar, has surged from nearly nothing to $137 billion in the last four years. Analysts foresee this growth trend persisting, emphasizing the rising importance and trade volume of stablecoins.
Circle CEO Jeremy Allaire highlighted in a December 13 CNBC interview that the demand for stablecoins is poised to surge over the next few years, driven by investors seeking the security of digital dollars with internet connectivity. Meanwhile, Bitwise foresees significant progress in the tokenization of real-world assets, suggesting that JPMorgan might tokenize a fund on-chain as the market for tokenized assets experiences rapid growth.
Bitwise, recognized as the world’s largest crypto index fund manager, is among the 13 financial institutions that have submitted applications to the US Securities and Exchange Commission for an authorized spot Bitcoin ETF.
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