Bitwise, a prominent crypto index fund manager, has made a bold prediction for Bitcoin’s future price, stating that it will surpass its current all-time high. The cryptocurrency has been experiencing a bullish sentiment, with its price doubling this year. Bitwise believes that this positive momentum will carry into the next year, as outlined in their recently released report. According to the forecast, BTC is expected to reach $80,000 by 2024, supported by two major catalysts that will propel the crypto to new heights.
One significant factor contributing to Bitcoin’s projected growth is the highly anticipated launch of spot Bitcoin ETFs in the United States. These ETFs would allow mainstream investors to gain direct exposure to Bitcoin through traditional investment firms. Throughout the year, Bitcoin has shown positive reactions to news surrounding spot ETFs. Analysts predict that the launch of a spot ETF has the potential to push Bitcoin’s price over $100,000 in its inaugural year.
The Next Bitcoin Halving
Another catalyst that Bitwise believes will drive Bitcoin’s surge is the next Bitcoin halving, an event highly anticipated within the crypto industry. Scheduled for April 2024, the halving will halve the mining rewards from 6.25 BTC to 3.175 BTC per block. Bitwise estimates that, at the current price of Bitcoin, the next halving will result in a $6.2 billion reduction of new Bitcoins entering the market annually until the subsequent halving occurs.
As the halving approaches, the supply and demand balance is expected to tip significantly due to the anticipated frenzy following the approval of spot Bitcoin ETFs. This imbalance may fuel a surge in the price of Bitcoin, with investors buying in to capitalize on a potential rally.
Aside from Bitcoin’s bullish trajectory, Bitwise’s report includes several other bold predictions for the crypto industry in 2024. These predictions reflect a promising future for cryptocurrencies, increased institutional interest, and widespread acceptance.
– Growth of Stablecoins: Bitwise estimates that stablecoins will experience substantial growth, with more payments being conducted using stablecoins than through conventional methods such as Visa.
– JP Morgan’s Tokenized Fund: The report suggests that JP Morgan, the world’s largest bank, will launch a tokenized fund utilizing blockchain technology. This move could further validate and legitimize the cryptocurrency sector.
– Ethereum’s Increased Revenue: As Ethereum’s usage and transactions increase, Bitwise predicts that its annual revenue will double, highlighting the platform’s growing importance within the crypto ecosystem.
– Crypto as the Native Currency of the Internet: Bitwise envisions a future where cryptocurrencies become the native currency of the internet, allowing for seamless and borderless transactions.
With Bitwise’s optimistic forecast, the potential for Bitcoin to hit $80,000 by 2024 becomes an exciting prospect for cryptocurrency investors. The launch of spot Bitcoin ETFs and the next Bitcoin halving are expected to be major catalysts that drive this surge. Additionally, the Bitwise report paints a picture of a prosperous year for the crypto industry, with increased institutional interest, mainstream acceptance, and the growth of stablecoins. However, it is important to note that investing in cryptocurrencies carries risks, and individuals should conduct thorough research before making any investment decisions.