Bitwise, a manager of crypto index funds, has predicted an inflated price for Bitcoin that would push it beyond its present all-time high.
At present, there is a strong attitude toward Bitcoin, and its price has doubled so far this year. The investment manager in question claims that this outlook will persist throughout the next year. Bitwise identified two key triggers that could drive the cryptocurrency flying in a newly published analysis, predicting that BTC will reach $80,000 in 2024.
Among the ten predictions made by Bitwise for the cryptocurrency market in 2024 was the direction of the price of the cryptocurrency. This year, the price performance of the world’s biggest cryptocurrency has surpassed that of other asset classes. According to the numbers, Bitcoin’s value has increased by almost 125% so far this year, and many industry watchers predict that this surge will continue. In contrast, the S&P 500 index has returned 21% so far this year.
In its first forecast, Bitwise projected that Bitcoin’s price would surpass $80,000 in 2024, establishing a new record. The much-anticipated debut of spot Bitcoin ETFs in the United States is a key factor propelling this expansion. With the use of a spot ETF, regular people might invest in the currency directly via established investing firms.
The majority of the news about spot ETFs this year has had a good reaction from Bitcoin. With many experts predicting that a spot ETF might propel Bitcoin above $100,000 in its first year, the launch is expected to be the most successful ETF launch to date.
One of the most talked-about events in the cryptocurrency sector, the upcoming Bitcoin halving, is another possible driver. In April 2024, Bitcoin will undergo its second halving, lowering the mining rewards from 6.25 BTC to 3.175 BTC per block. Bitwise predicts that, based on the present Bitcoin price, the annual supply of new Bitcoins entering the market will be reduced by $6.2 billion after the next halving.
Following the approval of spot Bitcoin ETFs, supply and demand are likely to change significantly, which the halving will exacerbate. As the halving date draws near, investors may purchase Bitcoin in anticipation of a price increase, which might cause its price to skyrocket.
The Bitwise analysis also predicts that the cryptocurrency sector will have a banner year in 2024, with widespread adoption and heightened interest from institutions. Stablecoin growth is one area where experts are positive; Bitwise, in particular, expects more stablecoin payments than Visa.
