The year 2023 is drawing to a close. In the crypto ecosystem, certain players are working to deliver their projections on the major trends which, according to them, should mark the year 2024 which is on the horizon. A few days ago, we provided you with projections provided by the VanEck company regarding the crypto market in 2024. The crypto asset manager Bitwise also took part in the same exercise. In the following few lines, we provide you with 10 succinct points on what players and observers of the crypto industry should expect in 2024, according to Bitwise. It is worth remembering, before getting to the heart of the matter, that this is pure speculation. There is therefore no certainty that the facts envisaged here really materialize.
Point 1: 2024, the era of remarkable crypto domination!
In 2024, Bitwise thinks we should expect what it calls “the mainstream era” cryptocurrencies. According to her, this is a time window marked by the emergence of these cryptos from the shadows, to display their presence in the daily life of real life.
According to Bitwise, this period which should open from next year is part of the logic of the recent resurgence of cryptos. After a timid 2022, they got their heads above water in 2023. And the figures speak for themselves.
Indeed, cryptos have experienced a remarkable rise, with bitcoin (BTC) and solana SOL, for example, jumping around 128% and 495% respectively. According to Bitwise, this dynamic is only the beginning. Especially since certain major financial players like BlackRock, among others, have made substantial commitments in this market.
Point 2: The flagship crypto will shatter its records to reach $80,000!
Bitcoin, the queen of cryptos, is currently trading slightly above $42,000. According to Bitwise, the asset will reach $80,000 in 2024, well above its historical level of around $67,000. This, while also outperforming the S&P 500, gold and bonds by 128%.
Certainly, this projection is extremely optimistic, but two essential factors fuel it. First, the imminent launch of a spot Bitcoin ETF in early 2024, which is expected to attract considerable capital from retail and institutional investors. Which, according to Bitwise, will boost demand for bitcoin. Then, the halving of bitcoin in April or May 2024 which will halve the annual production of the flagship crypto.
Point 3: Bitcoin spot ETF will be approved in 2024!
Bitwise embraces what many experts have already said about the SEC’s approval of a Bitcoin Spot ETF. There is no doubt, according to the company, that this will take place in 2024. It also recalls the 90% probability to this effect.
Bitwise clarifies that to have a substantial impact on the crypto market, these ETFs must accumulate significant assets. Its internal studies predict a potential inflow of $72 billion, or 1% of the US ETF market ($7.2 trillion), within five years. Remarkably, this estimate is conservative relative to public expectations. Bitwise plans an innovative launch and significant footprint in an evolving financial landscape.
Point 4: The crypto exchange Coinbase would see its revenues double in 2024
According to Bitwise projections, Coinbase is expected to surpass Wall Street forecasts with revenue doubling in 2024. This defies estimates of the platform’s growth of just 9% year-over-year. Bitwise deems them conservative because they overlook key factors, such as the market’s uptrend with BTC rising 128%. But also Coinbase’s various product launches and its central role as custodian of the upcoming Bitcoin Spot ETFs. With the outlook for the crypto market being favorable, a doubling of Coinbase’s revenues seems likely and above all achievable in 2024.
Point 5: Stablecoins that crush Visa in terms of performance!
Stablecoins, one of the main cryptos, have gone from a market worth less than a nail four years ago, to a capitalization of 137 billion dollars. Bitwise believes that with the return of the crypto bull market and the dominance of stablecoins over payments and remittances, unprecedented growth is achievable in 2024. Boldly, the firm predicts that stablecoins will surpass Visa in terms of volume of transactions. A prospect which is not as distant as it seems according to her.
Point 6: JPMorgan will be talked about in the tokenization of assets in 2024
For Bitwise, JPMorgan would tokenize a fund, joining the trend of tokenizing real-world assets on Wall Street. With over $5.5 billion already tokenized, the Global Financial Markets Association (GFMA) predicts that this figure will reach $16 trillion by 2030. As the world’s largest bank, JPMorgan has widely explored blockchain technology, recently conducting successful tests on the Avalanche blockchain. These tests helped streamline various portfolio management processes. Which, according to Bitwise, paves the way for the bank to launch a tokenized fund in 2024.
Point 7: Explosion in Ethereum revenue, driven by sustained adoption
In 2024, Bitwise sees Ethereum exceeding $5 billion in revenue thanks to massive user adoption of its crypto tools. The manager believes that contrary to popular belief, blockchains, particularly Ethereum, are not lacking liquidity. Acting as a global supercomputer, Ethereum hosts many crypto applications requiring users to pay fees in Ether (ETH). It is an important source of liquidity. Forecasts indicate a minimum doubling of Ethereum revenue as crypto applications become more widespread. Which would make Ethereum one of the fastest growing technology platforms in the world in 2024. This projection could be supported by a major blockchain update that would reduce the average transaction cost to less than 0.01 dollar. An option that would expand its potential to the general public.
Point 8: 2024 would see Taylor Swift launch into NFTs
Next year, Bitwise sees global music icon Taylor Swift branching out into NFTs. This, by taking advantage of its innovative approach to get closer to its fans. A strong advocate of artists’ ownership of their works, Swift would see NFTs as an ideal means to achieve this end. An approach that will align with industry trends, since major artists like Snoop Dogg and Eminem are already adopting NFTs. Spotify, where Swift dominated with 26 billion streams in 2023, is even considering tokenized playlists. Which, according to Bitwise, would only increase Taylor Swift’s interest in NFTs.
Point 9: AI widely used for online payments
In 2024, Bitwise believes AI assistants will revolutionize online transactions by adopting cryptos as the digital currency of choice. This change could be similar to old technological combinations such as “personal computer + internet” Or “phone + camera + GPS”. This prospect would give rise to semi-autonomous artificial intelligence agents. These tools deemed essential in 2024 and beyond, according to Bitwise, will need transparent transaction capabilities that cryptos should offer them. This would mark the advent of the era of what Bitwise calls “the native digital currency”.
Point 10: Cryptos will impact the decentralized prediction market in 2024
According to Bitwise, more than $100 million is expected to be wagered on decentralized prediction markets. Which would constitute a breakthrough in the crypto field. The company believes cryptos would improve the prediction market by ensuring borderless and permissionless transactions. While automating the determination of results and payments. The decentralized prediction market should become the next “killer app” for cryptos, serving as a hub for traditional sports betting in particular.
Alongside this projection, Bitwise predicts that 25% of financial advisors will invest in cryptos by the end of 2024. The early approval of a spot Bitcoin ETF should remove current hurdles. This perspective allows advisors to allocate funds to bitcoin in a transparent manner.
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