Bitwise, a leading cryptocurrency research firm, projects Bitcoin to reach a new peak of $80,000 in 2024, a year when stablecoins are expected to surpass Visa in settlement volume.
In a Dec. 13 social media post, Bitwise’s senior research analyst, Ryan Rasmussen, shared 10 optimistic projections for the crypto market in 2024, with a significant focus on the rapid expansion of the stablecoin sector. Bitwise anticipates stablecoins to outperform Visa in terms of transaction volume, emphasizing the growing prominence of dollar-pegged and other asset-backed tokens in the crypto sphere.
As of the third quarter of 2023, while Visa processed over $9 trillion in transactions, stablecoin trading volume had already reached $5 trillion. Rasmussen highlighted the meteoric rise of stablecoins, growing from virtually zero to $137 billion in market cap over just four years. He anticipates even greater trading volume and utility for stablecoins in 2024.
Circle CEO Jeremy Allaire, speaking with CNBC on Dec. 13, echoed Bitwise’s bullish outlook on stablecoins, citing a substantial demand for digital dollars on the internet. Asset manager Van Eck also predicts the total stablecoin market cap to hit $200 billion by the end of 2024.
Rasmussen predicts a landmark year for Bitcoin, driven by the anticipated launch of the first spot Bitcoin ETF and the Bitcoin halving event in April, propelling its value above $80,000. However, predictions for Bitcoin’s future value vary widely, with estimates ranging from $100,000 to as high as $1 million post-halving in 2024.
Bitwise also speculates on the successful launch of a spot Bitcoin ETF, potentially becoming the most successful ETF debut ever, attracting $72 billion in assets under management within five years.
Ethereum is not left behind in Bitwise’s predictions, with an expected 100% increase in revenue to $5 billion in 2024. The firm also anticipates significant reductions in gas costs on the Ethereum network following the EIP-4484 upgrade.
In the traditional finance (TradFi) sector, Coinbase is tipped to be the top beneficiary of the anticipated 2024 bull market. Bitwise forecasts a 100% revenue growth for Coinbase, outperforming Wall Street expectations by a significant margin.