In a recently released report, Bitwise, a crypto index fund manager, shared its bullish price forecast for Bitcoin. According to the report, Bitwise predicts that Bitcoin will hit $80,000 by 2024, surpassing its current all-time high. This article will delve into the factors driving this prediction and explore the potential catalysts that could propel Bitcoin to new heights.
Bitcoin has experienced a remarkable year, doubling in price and outperforming other asset classes. With a growth rate exceeding 125% this year, many analysts believe that this upward trajectory is far from over. The Bitwise report highlights the crypto’s positive performance and suggests that this trend will continue into the next year.
The Catalysts for Bitcoin Growth
Bitwise has identified two major catalysts that will likely contribute to Bitcoin’s growth in the coming years: the launch of spot Bitcoin ETFs in the US and the next Bitcoin halving event.
The Launch of Spot Bitcoin ETFs
The highly anticipated launch of spot Bitcoin ETFs in the US is expected to have a significant impact on Bitcoin’s price. A spot ETF would enable mainstream investors to gain direct exposure to Bitcoin through traditional investment companies. Throughout the year, Bitcoin has demonstrated a positive reaction to news surrounding spot ETFs. Analysts anticipate that the launch of a spot ETF could push Bitcoin above $100,000 in its first year, further bolstering its market value.
The Next Bitcoin Halving
Another key event that Bitwise believes will drive Bitcoin’s price is the next Bitcoin halving, set for April 2024. During a halving, the mining rewards for Bitcoin decrease, reducing the rate of new Bitcoins entering the market. Currently, the mining rewards are 6.25 BTC per block, but after the next halving, they will reduce to 3.175 BTC per block. Bitwise calculates that this reduction will lead to a $6.2 billion decrease in annual Bitcoin supply. As the halving approaches, investors may anticipate a price rally and consequently buy Bitcoin, potentially causing the price to surge.
Aside from the specific catalysts mentioned above, the Bitwise report paints a promising future for the entire crypto industry in 2024. It includes several bullish predictions, such as increased institutional interest, mainstream acceptance, and the growth of stablecoins. Bitwise estimates that stablecoins will surpass Visa in terms of payments, indicating a growing acceptance of cryptocurrencies as a medium of exchange. Additionally, the report suggests that major financial institutions like JP Morgan will enter the blockchain space by launching tokenized funds. Furthermore, Ethereum’s annual revenue is expected to double as transaction volumes increase. The ultimate prediction is that cryptocurrencies, particularly Bitcoin, will become the native currency of the internet.
As Bitcoin continues its bullish trajectory, Bitwise predicts that its price will surge to $80,000 by 2024. The launch of spot Bitcoin ETFs in the US and the next Bitcoin halving are identified as major catalysts for this growth. The Bitwise report also highlights other promising developments in the crypto industry, including increased institutional interest and the widespread acceptance of stablecoins. While these predictions offer an optimistic outlook, it is important for investors to conduct their own research and exercise caution when making investment decisions in the volatile cryptocurrency market.