The American crypto asset management company Bitwise has boldly forecasted that Bitcoin will surge above $80,000 in 2024.
Bitwise issued the bold prediction in a recent report co-authored by ten leading researchers in the crypto space. In the report, the asset management firm noted that Bitcoin will build on the positive momentum from 2023.
Bitcoin and Solana Led 2023
In particular, Bitwise declared that 2023 marked an outstanding year for the digital asset space, with significant recoveries from the low prices recorded in 2022. It highlighted that Bitcoin and Solana led the charge. Respectively, both attained impressive gains of 128% and 495% on a year-to-date scale.
Furthermore, the report noted that Bitcoin outshone major traditional asset classes in 2023. It surpassed the S&P 500 (21%), gold (12%), and bonds (2%) with a 128% surge. Besides, it mentioned crypto equities surged by 138%.
Bitwise sees the momentum continuing into 2024, confidently predicting the onset of crypto’s “Mainstream Era.” According to the report, it represents a pivotal moment where cryptocurrencies transition from the fringes to establish a lasting presence in the real world.
Why Bitcoin $80,000 is Feasible
With the trend expected to persist into 2024, Bitwise believes a $80k per BTC is feasible. The company attributed the bullish projection to two pivotal catalysts. First on the list was the eagerly awaited launch of a spot Bitcoin Exchange-Traded Fund (ETF).
In particular, the report argued that a spot Bitcoin ETF in early 2024 will unleash a tidal wave of capital from retail and institutional investors.
Meanwhile, the second factor adding to the positive outlook is the upcoming Bitcoin halving event in early 2024. The Bitcoin halving will cut the annual production of new BTCs. Based on prevailing market values, the reduction translates to a substantial decrease of $6.2 billion in the influx of new BTC into the market each year.
As a result, Bitwise argued the combination of increased demand, driven by the ETF launch, and reduced supply due to the halving would create a favorable environment for Bitcoin to sustain its upward trajectory and set a new record high.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
