Bitwise is not the only company that is optimistic about stablecoins; Circle CEO Jeremy Allaire also believes that the industry will grow rapidly because of people's "huge appetite" for digital currency.
According to a Bitwise senior research analyst, Bitcoin is expected to reach a new all-time high of $80,000 in 2024, the same year stablecoins are expected to collectively settle more money than payments giant Visa. Ryan Rasmussen of Bitwise provided 10 bullish predictions for the cryptocurrency industry in 2024 in a post on X (formerly Twitter) on December 13, with one of the main themes being the explosive growth of the stablecoin industry. Bitwise describes the dollar and other asset-pegged tokens as one of the most "killer apps" in cryptocurrency. By the third quarter of 2023, Visa had processed over $9 trillion in payments, while stablecoin trading volume had topped $5 trillion.
Prediction #3: Coinbase’s revenue will double, beating Wall Street expectations by at least 10x.
— Ryan Rasmussen (@RasterlyRock) December 13, 2023
Historically, Coinbase's trading volumes surge in bull markets, and we expect the same to happen again. Plus, they’ve launched a wide range of new products that are showing traction. pic.twitter.com/a1bq1IyyMq
Rasmussen cited stablecoins, which over the course of the last four years have seen their market capitalization soar from almost nothing to a staggering $137 billion. He projected that stablecoins will only see increased trading volume and utility in 2024 based on that growth tendency. Bitwise is not the only one who is bullish on stablecoins. According to Circle CEO Jeremy Allaire, in a Dec. 13 interview with CNBC, stablecoin demand will soar in the coming years as investors look for the security of digital money that can be accessed online.
Furthermore, by the end of 2024, asset manager Van Eck projected that the market capitalization of all stablecoins would have increased to $200 billion.
Rasmussen also anticipates a great year for Bitcoin, which he believes will reach above $80,000 in 2024. He believes that the anticipated introduction of the first spot Bitcoin exchange-traded fund and the halving event in April will be significant drivers of price increases. However estimates for Bitcoin in 2024 have been very different between market observers and specialists. Plan B, a cryptocurrency analyst, predicted in November that the average price of bitcoin would reach at least $100,000 between 2024 and 2028. In contrast, BitQuant designated a target price of approximately $250,000 following the 2024 halving. Some analysts even predict that Bitcoin may reach $1 million in the future.
Prediction #1: Bitcoin will trade above $80,000, setting a new all-time high.
— Ryan Rasmussen (@RasterlyRock) December 13, 2023
There are two major catalysts that will help get us there: the anticipated launch of a spot Bitcoin ETF in early 2024 and the halving of new bitcoin supply around the end of April. pic.twitter.com/KvHNx9XINz
According to Bitwise's predictions, the spot Bitcoin ETF will not only be approved but also begin as the most successful ETF ever, bringing $72 billion in assets under management in the next five years. Bitwise is one of the thirteen financial institutions submitting an application to the US Securities and Exchange Commission to be recognized as a spot Bitcoin ETF. Bitwise is speculating that Ethereum will generate $5 billion in revenue in 2024, a 100% increase in revenue and that gas costs on the main network might drop to less than $0.01 thanks to the EIP-4484 update.
Aside from cryptocurrency assets, Coinbase is the leading candidate for TradFi to benefit the most from the anticipated 2024 bull market. Bitwise predicts a 100% increase in income for the upcoming year, which would surpass Wall Street estimates tenfold.
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