In the ever-evolving world of digital currencies, Bitwise Invest casts its gaze forward, delineating a series of projections that narrate an exhilarating chapter for the cryptocurrency landscape in 2024. The investment firm, renowned for its acumen in the crypto space, divulges these insights, foreshadowing the trajectory of pivotal players like Bitcoin, Ethereum, and the venerated exchange, Coinbase.
Forecasts herald Bitcoin to shatter its own ceiling, as Bitwise posits the pioneering cryptocurrency will ascend beyond its historical peaks, reaching upwards of $80,000. This optimistic stance is rooted in two significant developments: the proposed introduction of a Bitcoin spot exchange-traded fund (ETF) early in 2024 coupled with the scheduled halving of Bitcoin’s supply by late April, a deflationary event expected to escalate its value.
In an uncharted feat, the Bitwise analysis anticipates spot Bitcoin ETFs not only to receive the regulatory green light but to also eclipse all records as the most triumphant ETF inauguration the industry has ever witnessed.
Coinbase, a towering figure in the cryptosphere, is projected to see its revenues burgeon, potentially doubling and significantly outstripping Wall Street’s forecasts. With bull markets on the horizon, the exchange’s trading volumes are expected to balloon, buttressed by the success of novel product offerings that have swiftly captured market attention.
Bitwise underscores the ascension of stablecoins, foreseeing these digital assets settling more transactions than those processed by the payment colossus Visa and labeling them as one of the indisputable “killer apps” of the crypto domain. From their inception to a $137 billion market in merely four years, stablecoins are poised for further expansion in 2024.
Ethereum, too, is at the cusp of a revolutionary leap, predicted to surge past $5 billion in revenue, a more than twofold increase from the preceding year. The influx of users gravitating towards crypto applications underpins this potential surge. Ethereum stands at the forefront as one of the world’s most rapidly growing large-scale tech platforms.
In what could be a transformative development, Bitwise anticipates the Ethereum network will implement the EIP-4844 upgrade, markedly decreasing transaction fees to less than one cent. This seismic reduction in costs is the harbinger of broad-scale adoption and the inception of innovative applications within the cryptographic milieu.
A further projection envisages roughly a quarter of financial advisors incorporating cryptocurrencies into their clients’ portfolios by year’s end, a move likely to follow the accessibility and normalization of Bitcoin.
Ethereum has recently seen a 1.4% uptick in its 24-hour trading price, aligning with the uptrend observed in Bitcoin. However, the week presented a slight downturn for Ethereum, with a decrease of 2.4%.
These forecasts weave a tale of formidable strides and expansion for the cryptocurrency sector in the approaching year, as Bitcoin and Ethereum anticipate record highs and transformative developments, while major exchanges like Coinbase prepare for substantial revenue growth.
