Investment management firm VanEck has recently released its predictions for the year 2024, outlining not only a surge in Bitcoin prices but also the anticipated growth of the NFT market. These projections signal a significant transformation in the cryptocurrency industry and present new opportunities for investors.
Bitcoin’s All-Time High
VanEck predicts that Bitcoin will reach an all-time high in the fourth quarter of 2024. This optimistic outlook is backed by the dismantling of the SEC’s adversarial regulatory stance, which has hindered the growth of cryptocurrencies in the past. With the increased optimism, Bitcoin could potentially experience a new peak on November 9th, precisely three years after its last peak in November 2021.
One of the key factors contributing to Bitcoin’s rise is the introduction of spot Bitcoin exchange-traded funds (ETFs). The launch of these ETFs is expected to align with the prolonged anticipation of a U.S. recession. By providing a regulated and accessible investment vehicle for Bitcoin, spot Bitcoin ETFs could attract institutional investors and drive up demand for the cryptocurrency.
Contrary to prior expectations, VanEck suggests that the forthcoming halving event may not generate as much impact as previously thought. The halving, scheduled for April 2024, will occur with minimal drama, according to the investment firm. As the issuance of new coins is halved, less profitable miners are likely to disengage from the market. This allows miners with cost-efficient power sources to gain a larger market share. VanEck also anticipates that at least one publicly traded miner will experience a tenfold increase by the end of the year, further strengthening Bitcoin’s position.
Ether’s Performance and Market Share
While Ether has shown a strong performance in 2024, it is not expected to surpass Bitcoin until after the halving event. However, a complete “flippening” is not foreseen. Ether’s market share is projected to decrease as other smart contract platforms, such as Solana, gain traction. The scalability roadmap for these platforms is clearer and less uncertain, making them attractive alternatives to Ether. Despite the projected decrease in market share, Ether may outperform for the year as a whole.
Following Binance’s $4 billion settlement with US regulators, VanEck predicts that the exchange will relinquish its position as the top centralized exchange by volumes. Competitors such as OKX, Bybit, Coinbase, and Bitget, backed by substantial funding, are poised to contend for the leading spot. As Binance faces a rigorous three-year examination by the DOJ, Coinbase’s international futures market is expected to thrive. VanEck predicts that it will surpass a daily volume of $1 billion, a significant increase from approximately $200 million per day in November 2023.
Decentralized Exchanges (DEX) and On-Chain Trading
VanEck foresees a significant increase in the market share of spot cryptocurrency trading on Decentralized Exchanges (DEX). This growth will be driven by the enhanced on-chain trading experience facilitated by high-throughput chains like Solana. Additionally, the adoption of improved wallets that incorporate “account abstraction” as a crucial feature will encourage more users to engage in on-chain transactions and embrace self-custody solutions.
In addition to Bitcoin’s expected surge, VanEck predicts a peak in the NFT market by 2024. Non-fungible tokens have gained significant attention in recent years, and their popularity is expected to continue growing. As the market evolves, blockchain technology will play a crucial role in ensuring the authenticity and ownership of digital assets. The NFT market presents exciting opportunities for artists, collectors, and investors alike.
VanEck’s predictions for 2024 paint a promising picture for the cryptocurrency industry. Bitcoin is expected to hit record-breaking highs, driven by the introduction of spot Bitcoin ETFs and the dismantling of regulatory obstacles. Additionally, the NFT market is projected to experience significant growth, opening up new avenues for artists and investors. As the industry continues to evolve, careful observation and analysis will be crucial for navigating the ever-changing landscape of cryptocurrency investments.