Bitcoin to Reach New All-Time High in 2024, Says VanEck
According to asset manager VanEck, Bitcoin (BTC) will achieve a new all-time high in late 2024. This prediction is based on the anticipation of a long-feared recession in the United States and regulatory shifts following the next U.S. presidential election. VanEck recently made 15 crypto predictions for 2024, including forecasts for Bitcoin’s price, the timing of a spot Bitcoin ETF launch, the impact of the Bitcoin halving, and emerging dominant crypto platforms.
$2.4 Billion Expected to Flow into Bitcoin ETFs in Q1
VanEck is confident that the first spot Bitcoin ETFs will receive approval in the first quarter of 2024. It also predicts that more than $2.4 billion will flow into these ETFs during this period to support Bitcoin’s price. The firm believes that the upcoming BTC halving will cause minimal market disruption but expects a price rise afterward. Additionally, VanEck forecasts that Bitcoin will reach an all-time high in Q4 2024, potentially driven by political events and regulatory changes following the U.S. presidential election scheduled for November 5, 2024.
Ether’s Performance Compared to Bitcoin
VanEck does not believe that Ether (ETH) will surpass Bitcoin in 2024 but expects it to outperform major tech stocks. The firm states that Bitcoin will lead the market rally and value will then flow into smaller tokens after the halving. However, Ether’s market share may face challenges from other smart contract platforms like Solana due to uncertainties surrounding scalability roadmaps. Ethereum remains the industry standard for smart contracts with a market capitalization of $285 billion, while Solana is a rival blockchain with a market cap of $30 billion. VanEck also highlights the potential for Ethereum layer-2 networks to capture the majority of total value locked and trading volume once the EIP-4844 scaling update is implemented.
Decentralization’s Impact on AI Monopolies
A16z, one of the industry’s largest venture capital firms, released a report stating that crypto could help decentralize artificial intelligence (AI) and move it away from the control of tech giants like OpenAI, Google, and Meta. According to A16z, decentralized networks can counterbalance centralized AI models that currently require massive resources only accessible to these giants. Crypto networks enable permissionless markets where anyone can contribute computing power and data to train large language models. This trend is expected to increase in 2024.
Binance’s Position as Top Exchange
VanEck predicts that Binance will lose its position as the top centralized exchange by volumes as competitors like Coinbase, OKX, Bybit, and Bitget contend for leadership. Binance has faced regulatory pressure globally and its CEO, Changpeng Zhao, recently stepped down amid a $4 billion settlement with the U.S. Justice Department. VanEck also foresees stablecoin market capitalization reaching $200 billion, Circle’s USDC making a comeback, decentralized exchanges reaching new peak spot trading volumes, and KYC-compliant DeFi platforms surpassing non-KYC ones.
Hot Take: Bitcoin Set for New Heights in 2024
VanEck’s predictions for Bitcoin in 2024 paint an optimistic picture for investors. With expectations of a new all-time high in late 2024 and significant inflows into Bitcoin ETFs during Q1, there are opportunities for growth in the cryptocurrency market. While Ether may not surpass Bitcoin in 2024, it is expected to outperform major tech stocks. Additionally, the potential for decentralized networks to disrupt AI monopolies and the shifting landscape of top cryptocurrency exchanges highlight the dynamic nature of the crypto industry. As we approach 2024, it will be interesting to see how these predictions unfold and shape the future of cryptocurrencies.
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