In a bold prediction, Bitwise, a leading cryptocurrency research firm, forecasts that Bitcoin will reach a new all-time high of $80,000 in 2024. This surge coincides with the projection that stablecoins, digital tokens pegged to traditional assets, will surpass the payment giant Visa in terms of settling transaction volumes. The increasing popularity of stablecoins and the anticipated launch of the first spot Bitcoin exchange-traded fund (ETF) are expected to drive this monumental growth in the crypto industry. Let’s delve into the details and explore why these predictions have gained traction among industry experts.

Stablecoins Set to Surpass Visa in Transaction Volume

Stablecoins, such as the US dollar-pegged tokens, have emerged as one of the most promising applications within the cryptocurrency ecosystem. Bitwise’s senior research analyst, Ryan Rasmussen, highlights that stablecoins are on track to settle more transaction volume than Visa by 2024. Notably, stablecoin trading volume has already surpassed $5 trillion, while Visa processed over $9 trillion in payments during the third quarter of 2023. With stablecoins experiencing exponential growth, their utility and trading volume are expected to continue expanding in the coming years.

Bullish Sentiment Surrounding Stablecoins

Bitwise is not the only entity expressing optimism about stablecoins. Circle CEO Jeremy Allaire predicts a massive surge in demand for stablecoins due to the increasing appetite for digital dollars in the online realm. The appeal of internet-enabled digital currencies, which provide a safe haven for investors, is expected to skyrocket. Moreover, asset manager Van Eck anticipates the total market capitalization of stablecoins to reach $200 billion by the end of 2024. This collective optimism further solidifies the notion that stablecoins are poised for remarkable growth.

Bitcoin’s Promising Outlook

Bitwise’s research analyst, Ryan Rasmussen, also projects a bright future for Bitcoin. He believes that Bitcoin will surpass $80,000 in 2024, driven by the introduction of the first spot Bitcoin ETF and the halving event scheduled for April. However, it is essential to acknowledge that other analysts and market commentators have varying predictions for Bitcoin’s price in 2024. Some anticipate an average price of at least $100,000, while others set targets as high as $1 million. The crypto market’s volatility and the evolving regulatory landscape contribute to these diverse forecasts.

Prospect of a Successful Spot Bitcoin ETF Launch

Bitwise speculates that the spot Bitcoin ETF will not only receive regulatory approval but also become the most successful ETF launch in history, accumulating $72 billion in assets under management within the next five years. Bitwise is among the financial institutions vying for an approved spot Bitcoin ETF with the United States Securities and Exchange Commission (SEC). The introduction of a Bitcoin ETF could further fuel the market’s growth and attract institutional investors looking for regulated exposure to cryptocurrencies.

Ethereum’s Growth and Coinbase’s Potential

Bitwise’s bullish outlook extends beyond Bitcoin. They predict a significant improvement for Ethereum in 2024 also according to Forbes, with a projected 100% increase in revenue, reaching $5 billion. This positive outlook is bolstered by the anticipated EIP-4484 upgrade, which could lower gas costs on the Ethereum network to below $0.01.

Conclusion

Bitwise’s bullish predictions for Bitcoin and stablecoins present an optimistic outlook for the crypto industry in 2024. With the anticipated surge in Bitcoin’s price, stablecoins challenging Visa’s dominance, and the potential approval of a spot Bitcoin ETF, the stage is set for significant advancements in the cryptocurrency market.

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However, it is crucial to note that these predictions are subject to market volatility and regulatory developments. Nonetheless, the potential for exponential growth in the crypto ecosystem is undeniably captivating.

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