The American Asset Management Company Bitwise Specializes In Digital Currencies And Is Considered One Of The Largest American Groups Active In This Sector. It recently Unveiled Its 10 Predictions for 2024 For The Digital Currency Market In A Report. 

Breaking the historical record price in the coming year is among the predictions of the experts of this institution.

The article below is a translation of an excerpt from the “10 Cryptocurrency Predictions for 2024” report from Bitwise Institute.

2023 was a great year for digital currencies—prices recovered from the 2022 lows, and significant currencies such as Bitcoin and Solana. Since the beginning of this year, they have had 128% and 495% returns, respectively. In addition, several major financial institutions worldwide, including BlackRock, Fidelity, and Franklin Templeton, strengthened their presence in this market.

For us, the future looks brighter than this. We recently gathered Bitwise experts to look at 2024 for digital currencies. Our final take is this: We believe that we are now at the peak of the era of “digital currencies becoming mainstream,” A period in which digital currencies come out of the shadows and establish their place in the real world for a long time.

10 Crypto Predictions for 2024

More precisely, what do we predict for 2024? Continuing this report, you will read ten predictions of Bitwise experts about the events 2024 in digital currencies. These items are all predictions and informed estimates of our experts, but note that there is no guarantee of their occurrence. The future is complex, and achieving these predictions depends on many factors. So, none of the things you read below are investment recommendations.

These ten predictions are:

• Bitcoin price crossing 80 thousand dollars
• Launch of the first Bitcoin Cash ETF
• Doubling the income of the Coinbase exchange
• Overtaking stablecoins from Visa
• Tokenization of a fund by JP Morgan
• Doubling of Ethereum network revenue
• Release of Taylor Swift NFTs
• Acceptance of digital currencies by artificial intelligence tools
• Welcome to cryptocurrency-based prediction markets
• A sharp drop in fees on the Ethereum network

Bitcoin passed 80 thousand dollars and breaking the historical record

Bitcoin has outperformed all major asset classes regarding price growth in 2023, experiencing a 128% growth. Meanwhile, in this period, the S&P500 index, gold, and bonds have yielded 22%, 12%, and 2%, respectively.

Two drivers will help Bitcoin reach the price level expected in this forecast. The first case is the first launch of the cash flow of Bitcoin in America, which is likely to happen in early 2024, and it can lead to the entry of a new wave of small capital as well as significant institutional capital into the market, thus increasing the demand for this digital currency.

The second case is the halving in front of Bitcoin, which will happen in April 2024 (April 1403) and will reduce the supply of new Bitcoin units by half. At current prices, this change equates to a $6.2 billion reduction in new units entering the market each year.

More demand? Less supply? Calculate yourself.

Bitcoin price historical chart.

Launching the first bitcoin cash ETFs in America and recording the most successful launch of exchange funds in history

Bloomberg analysts say there is a 90% chance of launching America’s first Bitcoin cash ETF in 2024. Of course, Bitcoin ETFs need to do more than launch and attract significant capital to impact the market severely. Our studies show that Bitcoin cash ETFs can capture 1% of the $7.2 trillion US stock market over five years, equivalent to $72 billion. The interesting point here is that our estimate of this share in the future is among the lowest available estimates.

Various companies predict the future market value of US Bitcoin Cash ETFs.

[It should be noted that Bitwise is one of the companies that has applied to launch a Bitcoin cash ETF in the US stock market.]

Doubling the income of the Coinbase exchange

The income of the American digital currency exchange Coinbase in 2024 will be double that of 2023. The percentage of revenue changes of this trading platform in 2024 compared to the previous year will also be ten times the Wall Street forecasts.

The increase in the volume of Coinbase transactions during the bull market, the launch of new products by the Coinbase team, including unique products for trading in the futures market, Base layer two networks, On-chain identity, and the role of Coinbase as a custodian. (Custodian) Most Bitcoin ETFs are among the things Wall Street ignored in its forecast.

Comparison of Wall Street and Bitwise forecast of Coinbase’s revenue performance in 2024.

Overtaking stablecoins from Visa

The amount of money that Stablecoins Moves will surpass Visa. This may seem strange, but statistics show we are closer than you think.

Comparison of the volume of payments of Visa and stablecoins every year.

Tokenization of a fund by JP Morgan

The American bank JP Morgan (JP Morgan) took action on the tokenization fund, and Wall Street will turn to tokenizing real-world assets. Currently, 5.5 billion dollars of real-world assets, such as goods, shares, real estate, etc., have been tokenized on blockchain networks. The Global Financial Markets Association (GFMA) also predicts that the market value of real-world tokenized assets will reach $16 trillion by 2030.

As the most prominent American bank, J.P. Morgan has been active in this field for years and recently introduced tokenized portfolios on the network platform. Avalanche has been tested. Tokenizing a fund in 2024 will allow them to take advantage of the efficiency of blockchain assets and simultaneously tap into a market that is growing exponentially.

The total market value of real-world tokenized assets.

Doubling of Ethereum network revenue

Ethereum network revenue will double to $5 billion by 2023, attracting more users to decentralized applications. The Ethereum network’s revenue from fees will be around $2.3 billion by 2023 and is expected to at least double in the coming year as decentralized applications become mainstream, making Ethereum one of the best large-scale platforms in the world. Convert growth rate.

Ethereum network annual income from fees.

Release of Taylor Swift NFTs

Taylor Swift, the star of the American music industry and one of the most famous artists in the world, is known for innovation and exemplary interaction with her fans. In 2023, he recorded more than 26 billion streams on Spotify than any other artist. Spotify is now testing music playlists that require users to have a specific NFT to listen to. But could Taylor Swift be launching her NFTs? Nothing like this can make NFTs a global trend.

Acceptance of digital currencies by artificial intelligence tools

Artificial intelligence-based tools will start accepting digital currencies to sell their services online. We imagine that the developers of these tools will prefer Internet-native digital currencies to traditional currencies. Of course, we expect this to happen on a small scale in 2024.

Welcome to cryptocurrency-based prediction markets

Currently, you can bet on events such as the outcome of the US presidential election or the approval date of Bitcoin Cash ETFs in specific prediction markets, such as Polymarket, which operate using digital currencies. Prediction markets have been around for a long time. Still, digital currencies have brought these platforms to a new level, which is borderless, not dependent on the permission of a central authority, and automating processes such as paying rewards to winners and charging fees to losers.

We envision decentralized prediction markets flourishing this year and becoming famous for users who make predictions based on expected events and traditional prediction models such as sports betting. So that the value of assets bet on these platforms will exceed 100 million dollars.

Changes in the value of wagered assets in cryptocurrency-based prediction markets.

A sharp drop in fees on the Ethereum network

An essential update: average fee. Layer two protocols: The Ethereum network will reduce the cost of processing each transaction to below $0.01, leading to more use of this blockchain as a common trend.

The update we’re talking about is EIP-4844, primarily aimed at reducing transaction fees on the Ethereum blockchain. Currently, the average transaction fee between Ethereum layer two networks is about $0.14, and this plan can reduce this figure to less than $0.01. This event, in our opinion, will significantly increase the variety of activities that can be done on this network and will make it possible to develop ideas such as unique tools for micropayments, social networks, and large-scale gaming platforms.

The average fee per transaction on Ethereum and the layer two networks based on it.