2023-12-28 10:21 |
We know, we know… there’s an SEC approval of some Bitcoin ETFs likely coming, and it’s going to be big. But that’s just January (probably). So, what else is coming for cryptocurrencies in 2024?
We scoured the web and social media to find five of the most creative, thought-provoking predictions on cryptos to see you through 2024. Here they are:
1. More crypto consolidation after the Bitcoin halvingThe next major event for Bitcoin that will happen in 2024 is its halving, which occurs once every four years. While this alone will be significant for the BTC price, U.S. Global Investors put forward another interesting prediction:
On the one hand, the price of Bitcoin has historically rallied immediately before and after previous halving events as investors act on the reminder that supply is highly restricted. On the other hand, smaller and less well-capitalized crypto miners will likely struggle to survive as the difficulty rate continues to climb and the mining reward is reduced by half. At the end of last month, crypto miners Hut 8 and US Bitcoin Corp completed their merger, and [we expect] additional business deals as the industry positions itself for this new era of mining difficulty.”
2. The meteoric rise of stablecoinsEarlier this month, Ripple CTO Joel Katz put out his own five predictions on X (formerly Twitter). He had this to say as his final forecasting for #2024Predictions:
Stablecoins will reshape global finance, creating new FX corridors and reducing USD dependence. The Middle East will lead in stablecoin adoption for regional trades… Financial institutions stardardising integration with blockchains will pave the way for stablecoins as a universal tool, streamlining international transactions and unlocking new economic potential.”
3. A Spot BTC ETF consequence you may not have thought ofUnless you’ve lived under a rock, you are of course aware that the SEC is sitting on a pile of Bitcoin spot price ETFs to either approve or decline… but almost certainly the former. But while almost everyone is watching January with baited breath for the SEC’s decision, we’re interested in the more longer-term ramifications.
Take for instance Frank Holmes of U.S. Global Investors, who talked in his ‘5 Bitcoin predictions for 2024’ of a spot Bitcoin ETF would cause a longer-term price revaluation similar to the 2004 launch of the first American gold-based spot ETFs:
Before GLD and the similarly gold-backed iShares Gold Trust (IAU), investors were limited to physical bullion (which can be costly to move and store) and the futures market (which may not be appropriate for every investor). GLD increased overall demand for gold by reducing the frictional costs associated with investing in the metal and making it more accessible to a broader investor base. Since that time, the price of gold has increased nearly 360 percent.”
This looks at the practicalities of a spot price-based ETF, but also hints at another intangible in the equation: the sense of legitimacy that an ETF offered by an industry titan (like, say, BlackRock) can confer.
This is something Holmes also thinks will spill over into Ethereum, as we see in our next prediction…
4. Don’t forget about Ethereum – which will have its moment too in 2024Holmes continues in the same predictions report that:
A spot Ethereum ETF could also be made available in 2024. The SEC’s decision on two specific filings, from VanEck and Ark/21Shares, is expected in May. Unlike Bitcoin, Ether is not considered a commodity, but I believe such an ETF will similarly drive demand for crypto.”
And, according to a report by Bitget Research Chief Analyst Ryan Lee:
With multiple positive factors resonating in 2024, BTC may further rise to its peak within six months to one and a half years after the halving. ETH is expected to break out accordingly. With the entry of top mainstream financial institutions, it can be anticipated that the combined efforts of the market will drive ETH to reach historic highs in 2024, breaking US$4900 and further pushing up the bottom price of the new ETH cycle to the range of $2500 to $3000.”
5. Stars and AI alike to get on the NFT bandwagonFinally, one of the more out-there predictions came from Ryan Rasmussen, a senior crypto research analyst at Bitwise Asset Management. He said in his ‘10 crypto predictions from Bitwise’ piece that: “Taylor Swift will launch NFTs to connect with fans” and “AI assistants will start using crypto to pay for things online, affirming crypto as ‘the native currency of the internet’, like bitcoin or stablecoins. And we think that starts happening in 2024.”
What are your favourite theories about where crypto will go in the coming year? Let us know!
The post Five of our favourite predictions so far on crypto in 2024 appeared first on Invezz
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