The company Bitwise, specialized in digital asset management, shared 10 cryptocurrency predictions for the upcoming year. Their forecasts cover various topics, ranging from Bitcoin, ETFs, and Ethereum to the possibility of NFTs from Taylor Swift.
2023 was a promising year for cryptocurrencies. Some experts consider it the end of the crypto winter, and 2024 is expected to bring a new spring with significant events that the community has awaited for years.
2023 was a great year for crypto. But we see even brighter things ahead. In this must-read report, the Bitwise research team lays out ten bold predictions for 2024. https://t.co/d8Pa4NkzJU
— Bitwise (@BitwiseInvest) December 13, 2023
According to Bitwise, Bitcoin is on the Rise
Bitcoin is expected to continue its upward trajectory, surpassing $80,000 and establishing a new all-time high. This momentum is attributed to two key catalysts: the launch of at least one Bitcoin ETF, attracting new capital from retail and institutional investors, and the upcoming Bitcoin halving in April or May 2024, resulting in a $6.2 billion reduction in annual supply.
Success of Bitcoin ETFs
The approval of Bitcoin ETFs in the spot market is foreseen with a 90% probability, according to Bloomberg analysts. These ETFs are expected to be the most successful in history, potentially capturing 1% of the U.S. ETF market, around $72 billion, within five years of their launch.
Exponential Growth of Coinbase
Coinbase, the leading cryptocurrency platform, aims to double its revenues, surpassing Wall Street expectations. This optimism is based on Bitcoin’s current bull market, Coinbase’s continuous innovation with products like perpetual futures and U.S.-regulated futures contracts, and its role as the primary custodian for most Bitcoin ETFs.
Stablecoins Surpass Visa
Stablecoins are projected to surpass Visa in transaction volume. This forecast reflects the steady growth of stablecoins, which have already reached a market of $137 billion in the last four years, with their expansion into payments and remittances increasing day by day. This goal is closer to realization than many might think.
Tokenization of Funds by J.P. Morgan
J.P. Morgan, one of the world’s largest financial institutions, joins the wave of tokenizing real-world assets by launching a tokenized fund on the blockchain. This move will leverage on-chain transaction efficiencies and respond to the projected growth of asset tokenization to $16 trillion by 2030.
Ethereum Doubles Its Revenues
Ethereum, the second-largest cryptocurrency by market capitalization, will see a significant increase in its revenues to $5 billion. This growth is attributed to rising transaction fees generated by the growing adoption of crypto applications using the Ethereum network.
Taylor Swift and NFTs
The iconic Taylor Swift joins the NFT revolution, exploring new ways to connect with her fans. NFTs offer innovative opportunities for artists, from exclusive access to participation in royalties, and Swift could pioneer this massive integration into mainstream music.
AI Assistants Use Cryptocurrencies
The integration of semi-autonomous artificial intelligence with cryptocurrencies marks a key technological advancement. AI assistants are expected to prefer native digital currencies, such as Bitcoin or stablecoins, for online transactions, opening up new possibilities for interaction and automated transactions on the network.
Rise of Decentralized Prediction Markets
Decentralized prediction markets are emerging as a new “killer app” for cryptocurrencies. They allow betting on global events and could become a primary platform for both sports-related and event-based wagering.
Major Upgrade in Ethereum
The anticipated Ethereum upgrade, EIP-4844, aims to significantly reduce the average transaction cost, possibly below $0.01. This would pave the way for truly massive applications in the crypto world, such as micropayments, large-scale social media, and gaming.
Bitwise has presented a fascinating array of predictions for 2024. It remains to be seen how many of these predictions will come true. The community must stay vigilant to make the most of these forecasts.