Bitcoin, the world’s largest cryptocurrency, has been on a remarkable bull run this year, doubling in price. However, according to Bitwise, a crypto index fund manager, this bullish sentiment is expected to continue well into the next year. In their recently released report, Bitwise predicts that BTC will skyrocket to $80,000 in 2024. This optimistic outlook is based on the identification of two major catalysts that are set to propel the crypto to new heights.
One of the key factors driving this anticipated growth is the imminent launch of spot Bitcoin ETFs in the United States. These ETFs will provide mainstream investors with a means of gaining direct exposure to Bitcoin through traditional investment companies. The news surrounding spot ETFs has consistently had a positive impact on Bitcoin’s price throughout this year. Many analysts believe that the launch of a spot ETF could catalyze Bitcoin’s price to exceed $100,000 in its very first year.
Another significant catalyst for Bitcoin’s future growth is the highly anticipated next Bitcoin halving, scheduled for April 2024. During this event, mining rewards will be reduced from the current 6.25 BTC to 3.175 BTC per block. Bitwise estimates that at the current Bitcoin price, the halving will result in a $6.2 billion reduction in the number of new Bitcoins entering the market annually until the subsequent halving occurs.
This reduction in supply, coupled with the increasing demand anticipated after the approval of spot Bitcoin ETFs, is expected to create a substantial supply and demand imbalance. As the halving approaches, investors may even drive up the price of Bitcoin in anticipation of a rally. This convergence of events is poised to have a profound effect on Bitcoin’s value.
The Bitwise report provides several other predictions that paint a picture of a prosperous year for the crypto industry in 2024. It suggests the mainstream acceptance of cryptocurrencies and increased institutional interest. One particularly bullish prediction is the exponential growth of stablecoins, with Bitwise estimating that there will be more payments made using stablecoins than through Visa.
Additionally, the report mentions that JP Morgan, the world’s largest bank, will launch a tokenized fund utilizing blockchain technology. Meanwhile, Ethereum’s revenue is expected to double as transaction volume increases. Lastly, the report suggests that cryptocurrencies may become the native currency of the internet, further solidifying their role in the global financial landscape.
The future appears bright for Bitcoin. Based on Bitwise’s analysis, the bull run is set to continue, propelling Bitcoin to new heights. With the expected launch of spot Bitcoin ETFs and the highly anticipated halving event, there are strong indications that BTC could reach $80,000 by 2024. Additionally, the Bitwise report highlights other positive developments in the crypto industry that further support this optimistic outlook. However, it is important to remember that investing in cryptocurrencies carries risks, and investors should conduct their own research before making any investment decisions.
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