Institutions anticipate positive growth for Bitcoin
A report by TechFlow combines predictions from various institutions regarding the future trajectory of Bitcoin. The report not only presents a range of opinions but also compares the parameters of the upcoming exposure of the digital asset market.
According to the report, institutional predictions for Bitcoin’s growth in 2024 are largely positive. Bitwise predicts that the price of Bitcoin will rise above $80,000 during this year. Coinbase believes that institutional investment in Bitcoin will remain a primary focus, especially in the first half of 2024.
The development of infrastructure plays a crucial role in shaping the outlook for virtual assets. Upcoming improvements to infrastructure and programmable features, such as fundamental protocols like Ordinals and layer 2, will contribute to the growth of the Bitcoin ecosystem in the near future.
Bitcoin Halving impacts supply and demand
Bitcoin miners receive a halved block reward every four years or after mining 210,000 blocks. This event, known as “halving,” reduces the number of new bitcoins entering circulation. The halving matters to the Bitcoin community because it signifies a decrease in the rate at which Bitcoin is created and brings the supply closer to exhaustion.
As of October 2023, approximately 1.5 million bitcoins are yet to be released through mining awards out of the total supply of approximately 19.5 million. Every halving event changes the supply and demand dynamics of Bitcoin, leading to a slower pace of BTC escalation and a decrease in new coins entering the market.
Ethereum and Solana set for bullish trends
In addition to Bitcoin, Ethereum is considered a pioneering platform for smart contracts. Many institutions expect significant developments in Ethereum Layer 2 in 2024 following Vitalik’s release of the Ethereum 2024 roadmap and the upcoming Cancun upgrade. Tokens of Ethereum Layer 2 projects like ARB and OP have experienced a recent surge in value.
The competition within public chain ecosystems is intense. While chains like Avalanche and Solana grew rapidly in 2023, Ethereum remains the leader and is starting to make an impact. The completion of the Cancun upgrade and gas price reductions are key factors driving institutional projections for a boom in the Ethereum Layer 2 ecosystem in 2024. Bitwise predicts that a significant upgrade to the Ethereum blockchain will lower transaction costs to less than $0.01, paving the way for wider adoption.
Solana, on the other hand, is expected to continue flourishing this year due to its growing popularity and demand as a blockchain platform. Many organizations predict that more projects will join or migrate to the Solana public chain in 2024. Solana’s resilience to attacks, whether related to TPS, gas prices, or community users, contributes to its appeal.
Hot Take: Bitcoin and Altcoins Poised for Growth in 2024
Despite range-bound trading and waning hype around Spot ETF approval, analysts remain optimistic about Bitcoin’s prospects in 2024. Institutional predictions point towards positive growth for Bitcoin, with price targets above $80,000. The Bitcoin Halving event continues to impact supply and demand dynamics, reducing the rate at which new bitcoins enter circulation.
Ethereum and Solana are also expected to experience bullish trends. Developments in Ethereum Layer 2 and upgrades like Cancun are anticipated to drive wider adoption and reduce transaction costs. Solana’s resilience makes it an attractive choice for projects seeking a robust blockchain platform.
Overall, with infrastructure improvements and increasing institutional interest, both Bitcoin and altcoins are positioned for growth in 2024.
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