Bitwise, a crypto index fund manager, has predicted a bullish price for Bitcoin that would surpass the current all-time high. Bitcoin is currently in a bullish sentiment and its price has doubled this year. But according to this fund manager, this sentiment will continue next year. In a recently released report, Bitwise predicted that BTC will reach $80,000 by 2024, identifying two key catalysts that will send the crypto economy soaring.
Bitwise predicts $80,000 Bitcoin
In his reportBitwise has listed ten things to watch for in the crypto industry in 2024, including the price trajectory of crypto. The world’s largest cryptocurrency has outperformed other asset classes in terms of price performance this year. Data shows that Bitcoin is currently up over 125% this year, and many analysts believe this growth won’t stop anytime soon. By comparison, the S&P 500 returned 21% this year.
2023 was a great year for crypto. But we see even better things in the future. In this must-read report, the Bitwise research team makes ten bold predictions for 2024. https://t.co/d8Pa4NkzJU
— Bitwise (@BitwiseInvest) December 13, 2023
In its first prediction, Bitwise predicted that Bitcoin would trade above $80,000 by 2024, which would mark a new all-time high. A key catalyst for this growth is the highly anticipated launch of spot Bitcoin ETFs in the US A spot ETF would allow mainstream investors to gain direct exposure to the coin through traditional investment companies.
Bitcoin has responded largely positively to various news surrounding spot ETFs this year. The launch is poised to be the most successful ETF launch Many analysts estimate that a spot ETF could push Bitcoin above $100,000 in its first year.
Bitcoin slightly above the $42K level today. Chart: TradingView.com
The other potential catalyst is the next bitcoin halving, one of the most anticipated events in the crypto industry. The next Bitcoin halving is scheduled for April 2024, which will reduce mining rewards from the current 6.25 BTC to 3.175 BTC per block. According to Bitwise, at Bitcoin’s current price, the next halving will reduce $6.2 billion in new Bitcoins entering the market each year until another halving.
The halving, coupled with the expected frenzy after spot Bitcoin ETFs are approved, is expected to significantly tip the balance between supply and demand. We could even see Bitcoin’s price rise as the halving approaches as investors buy in hoping to get ahead of a price rally.
Other predictions by Bitwise
Other predictions in the Bitwise report paint a picture of a prosperous year for the crypto industry in 2024, mainstream adoption and increased institutional interest. A particularly bullish prediction is the growth of stablecoins, with Bitwise estimating more payments in stablecoins than Visa.
Other predictions include JPMorganthe world’s largest bank, launching a tokenized fund using blockchain technology, Ethereums annual revenue doubles as transactions increase, and crypto becomes the internet’s native currency.
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