Asset manager VanEck predicts a new all-time high for Bitcoin in late 2024
Bitcoin (BTC) is set to reach a new all-time high in late 2024, according to asset manager VanEck. The prediction is based on the anticipation of a long-feared United States recession and regulatory changes following the next U.S. presidential election. VanEck made 15 crypto predictions for 2024, including price forecasts, the timing of a spot Bitcoin ETF launch, and the impact of the Bitcoin halving.
VanEck confident that the first spot Bitcoin ETFs will be approved in Q1 2024
VanEck is confident that the first spot Bitcoin exchange-traded funds (ETFs) will be approved in the first quarter of 2024. The firm also predicts that more than $2.4 billion will flow into these ETFs in Q1 to support Bitcoin's price. Despite the anticipated minimal market disruption from the Bitcoin halving, VanEck expects a post-halving price rise. The asset manager predicts that Bitcoin will make a new all-time high in Q4 2024, potentially driven by political events and regulatory shifts following the U.S. presidential election in November.
VanEck believes Ether won't surpass Bitcoin in 2024
VanEck also shared its belief that Ether (ETH) won't surpass Bitcoin in 2024 but will outperform major tech stocks. The firm expects Bitcoin to lead the market rally, with value flowing into smaller tokens after the halving. While Ether may outperform Bitcoin for the year, there will be no "flippening" of Ether surpassing Bitcoin in market share. VanEck also predicts that Ethereum's market share will face challenges from other smart contract platforms such as Solana, which has a more certain scalability roadmap.
Crypto could help move AI out of the grasp of tech giants
According to Andreessen Horowitz (a16z), a large venture capital firm, crypto could play a role in moving artificial intelligence (AI) away from the control of a few tech giants. By leveraging decentralized networks, AI models could become accessible to a wider Web3 community, countering the current reliance on massive resources controlled by tech giants. The firm believes that crypto networks enable permissionless markets where anyone can contribute computing power and data to train large language models.
Binance expected to lose top spot as a centralized exchange
VanEck predicts that Binance, one of the leading centralized cryptocurrency exchanges, will lose its top position in terms of trading volumes. Competitors such as Coinbase, OKX, Bybit, and Bitget are expected to contend for leadership. Binance has recently faced regulatory pressure globally, culminating in its CEO stepping down and a $4 billion settlement with the U.S. Justice Department.
Other predictions include stablecoin market growth and the rise of KYC-compliant DeFi platforms
VanEck's predictions for 2024 include a $200 billion market capitalization for stablecoins, a comeback for Circle's USDC stablecoin, a new peak in spot trading volumes for decentralized exchanges, and the likelihood of KYC-compliant decentralized finance (DeFi) platforms surpassing non-KYC ones. Additionally, the firm expects KYC-enabled and walled garden applications to gain traction, potentially surpassing non-KYC applications in terms of user base and fees.
