Bitwise, a crypto index fund manager, has predicted a rising price for Bitcoin that would go beyond its current all-time high. Bitcoin is currently in bullish sentiment and the price has doubled this year. However, according to this fund manager, this sentiment will continue into next year. In a recent report, Bitwise predicted that BTC will reach $80,000 in 2024 and identified two key catalysts that will drive the cryptocurrency higher.
Bitwise predicts $80,000 Bitcoin
In his report, Bitwise has outlined 10 things to watch out for in the crypto industry in 2024, including crypto price trends. The world's largest cryptocurrency has outperformed other asset classes in terms of price performance this year. Data shows that Bitcoin is currently up more than 125% this year, and many analysts believe that this growth will not stop anytime soon. For comparison, the S&P 500 returned 21% this year.
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2023 was a great year for crypto. But we see much better things ahead. In this must-read report, the Bitwise research team presents ten bold predictions for 2024. https://t.co/d8Pa4NkzJU
– Bitwise (@BitwiseInvest) December 13, 2023
In its first forecast, Bitwise predicted that Bitcoin would trade above $80,000 in 2024, reaching a new all-time high. A key catalyst for this growth is the highly anticipated launch of Explore Bitcoin ETFs in the USA. A spot ETF would allow mainstream investors to participate directly in the coin through traditional investment companies.
Bitcoin has reacted mostly positively to various news surrounding spot ETFs this year. The launch is expected to be the most successful ETF launch Many analysts appreciate this A spot ETF could take Bitcoin to over $100,000 in its first year.
Bitcoin is slightly above the $42,000 mark today. Chart: TradingView.com
The other potential catalyst is this 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 the current Bitcoin price, the next halving will result in fewer new Bitcoins entering the market each year until another halving.
The halving, coupled with the expected excitement following the approval of spot Bitcoin ETFs, is expected to significantly alter the balance between supply and demand. We could even see a rise in the price of Bitcoin as the halving approaches, as investors buy in hopes of forestalling a price rally.
Other predictions from Bitwise
Other predictions in the Bitwise report paint a picture of a successful year for the crypto industry in 2024, widespread adoption and increased institutional interest. A particularly optimistic forecast is the growth of stablecoins, with Bitwise estimating that more payments will be made in stablecoins than Visas.
Other predictions include JP Morganthe largest bank in the world, launches a tokenized fund using blockchain technology, Ethereum Annual revenue doubles as transactions increase and crypto becomes the native currency of the internet.
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