Bitwise Investments, currently awaiting a decision on its spot Bitcoin ETF filing with the SEC, has followed VanEck in releasing a set of bold predictions for the crypto market in 2024.
Bitcoin‘s new all-time high above $80,000 is the first of Bitwise’s predictions. The report attributes this potential surge to two major catalysts: the expected launch of a spot bitcoin ETF in early 2024 and the halving event in April or May 2024, which will cut the annual supply of new bitcoin in half.
Another key prediction involves the approval of spot bitcoin ETFs, which Bitwise anticipates will collectively become the most successful ETF launch in history. This expectation hinges on the significant capital inflow from retail and institutional investors that these ETFs are poised to attract.
Coinbase is expected to see its revenue double, far surpassing Wall Street expectations. Bitwise’s optimism is based on the crypto bull market, Coinbase’s innovative product launches, and its position as the primary custodian for most bitcoin ETFs.
Traditional finance looks over its shoulder at crypto.
Bitwise also predicts that stablecoins will process more volume than Visa, marking a significant shift in the landscape of digital transactions. This prediction underscores the rapid growth and expanding applications of stablecoins in the financial sector.
Notably, Bitwise sees financial giant J.P. Morgan poised to foster a new wave of digital asset integration by tokenizing a fund and launching it on-chain. The move indicates Wall Street’s increasing inclination towards tokenizing real-world assets, which is anticipated to escalate the total value locked in assets currently valued at over $5.5 billion. Forecasts by the Global Financial Markets Association envisage this figure could surge to $16 trillion by 2030.
Tokenization trials conducted on the Avalanche blockchain by J.P. Morgan have verified the potential to automate numerous portfolio management processes, augmenting the efficiency of transactions and administration within the finance sector. With such an undertaking, J.P. Morgan would capitalize on the efficiencies of blockchain technology while engaging with a burgeoning market sector.
Ethereum scaling and increasing adoption.
Bitwise also projects a substantial climb in Ethereum‘s revenue, doubling to an estimated $5 billion as the demand for crypto applications intensifies. Counter to the notion that blockchains lack cash flow, Ethereum evidences the contrary, functioning akin to a global supercomputer hosting myriad applications that require transaction fees paid in Ethereum, contributing to the blockchain’s cash flow. With anticipation of blockchain applications attaining mainstream adoption, Bitwise believes Ethereum is poised to emerge as one of the world’s swiftly expanding large-scale tech platforms.
Bitwise highlights a critical upgrade to the Ethereum blockchain, known as EIP-4844, which is forecasted to reduce transaction costs on L2’s dramatically to below $0.01. This reduction could foster a new era of mainstream digital applications—from micropayments to expansive gaming environments—by mitigating one of the existing barriers to blockchain’s wider adoption.
Decentralized prediction markets stand out as an emerging “killer app” for crypto, predicted to have over $100 million staked. These platforms enable users to wager on many events and scenarios, from political outcomes to environmental developments, in a borderless and permissionless framework that simplifies the betting process and payouts through automation.
Taylor Swift NFT launch prediction to go mainstream.
One of the speculative predictions includes Bitwise’s bet that mega-star Taylor Swift will innovate in fan engagement through the launch of NFTs. By doing so, she would align with artists like Snoop Dogg and Eminem, who’ve already adopted NFTs to foster new artist-fan dynamics, leveraging blockchain’s capacity for offering concert access, experiences, and even partial music ownership through royalties. Internationally celebrated streaming service Spotify, which witnessed Swift as its most-streamed artist in 2023, is experimenting with token-gated playlists, further mainstreaming the NFT presence in popular music.
“Taylor Swift NFTs? Doesn’t get more mainstream than that.”
The report further speculates that adoption will increase through AI assistants which will begin transacting with crypto, reinforcing the position of digital currencies as the de facto currency of the internet. This fusion of AI with blockchain could redefine transactional dynamics by enabling AI “agents” to autonomously manage tasks and purchases online, using bitcoin or stablecoins, which meld seamlessly into the digital landscape.
In combining insights from financial institutions, entertainment, cutting-edge technology, and platform developments, Bitwise’s report paints a holistic and exciting picture of the transformative potential that 2024 holds for the crypto industry.
As a bonus prediction, Bitwise expects an increase in financial advisors allocating crypto to client accounts in 2024, reflecting the growing acceptance and integration of digital assets in traditional finance.
“1 in 4 financial advisors will allocate to crypto in client accounts by the end of 2024.”
These predictions, while speculative, are grounded in current trends and market dynamics, offering a valuable perspective on the potential directions of the crypto market in 2024. They also emphasize the rapidly evolving nature of the crypto sector and its increasing relevance across various industries.
While much attention globally is given to the seemingly impending spot Bitcoin ETF approvals, it’s refreshing to see that both two major ETF issuers, Bitwise and VanEck, assess the digital asset landscape beyond the benefits of Bitcoin alone.
