2023 has been an eventful year for cryptocurrencies. Many governments and central bank authorities have somewhat changed their earlier reluctance to deal with cryptos. Some have supported reasonable crypto regulations and want standard frameworks for investors. On crypto predictions in 2024, many experts feel that the year will be bearish for cryptos such as Binance and bullish for Ethereum and Coinbase. They also opine that Bitcoin will continue to perform well next year.
Bitcoin May Reach Above $80,000
Spot bitcoin ETF may dominate the headlines in early 2024. Most experts seem to agree with this crypto prediction and claim that it may attract a lot of large retail and institutional investment. The experts are quite rational in this prediction because Bitcoin’s performance in 2023 was outstanding. It rose by 128% and was way ahead of gold (12%), S&P 500 (21%) and bonds (2%). If this trend continues and market factors remain favorable, then Bitcoin may trade well above $80K and create a new world record in the crypto sector.
Binance May No Longer Retain Top Position
The year 2023 was a disaster for Binance. In November 2023, its founder and CEO Changpeng Zhao were charged with intentionally violating American economic sanctions and the Bank Secrecy Act. The company had to forfeit over $2.5 billion to the government. It also had to pay a fine of $1.8 billion. These events have tarnished the reputation of the company considerably. This is the reason experts now predict that it will soon lose its top position in spot trading amidst tough competition from Bybit, Coinbase, OKX, and Bitget.
Approval of Spot Bitcoin ETFs
Bitcoin ETS will be approved in early 2024. This can be called a safe prediction. Around 90% of the ETF analysts from Bloomberg claim that there is almost no hurdle in approving an ETF. After approval, ETFs may gain 1% of the 7.2 trillion US ETF market. Within the next five years, the figures may reach $72 billion.
Coinbase’s Revenue May Double
In the United States, Coinbase is the largest company that operates a cryptocurrency exchange platform. The revenue will double and will beat Wall Street expectations by at least 10x. There are three possible reasons behind this crypto prediction.
Firstly, innovation is a forte of Coinbase. This may propel the company to launch a new range of products and services. A new layer 2 blockchain (Base) and American-regulated future contracts may improve its prospects.
Secondly, the market seems to be bullish for Coinbase, as a result, it will experience a huge spike in markets.
Thirdly, for most Bitcoin ETFs, Coinbase can become the major custodian and become another catalyst for the firm.
Stablecoins May Become More Popular Than Visa
The past four years were a period of high growth for stablecoins. From nearly zero to a $137 billion market is an extraordinary feat in the history of the cryptocurrency market. Since there is a high possibility that crypto markets will remain bullish, the use of stablecoins will expand into payments and remittances. Gradually, stablecoins may displace Visa by settling more volumes of remittance.
Ethereum Revenue May Also Double
One of the most surprising crypto predictions for 2024 is that Ethereum’s revenue may double to over $5 billion because of a surge in the number of users. In 2023, users paid around $2.3 billion in fees globally to use the Ethereum network. This may double in 2024. Ethereum functions like an international supercomputer and hosts thousands of crypto applications that people use every day.
Rules and Regulations Will Improve
The Financial Accounting Standards Board may publish the long-awaited crypto accounting rules to clear all forms of doubts and ambiguities. A comprehensive accounting standard may come up that can address a wide range of crypto assets such as stablecoins, tokens, and decentralized finance. Mainstream adoption of cryptos may become a possibility if these standards promote transparency and consistency.
Also Read- Argentina Adopts Bitcoin as an Official Currency
Conclusion
The 2024 crypto predictions are based on speculations and reasonable analysis of current trends. If market factors remain favorable, then each of these predictions might turn out to be true. There is no doubt that 2023 was an eventful year for the crypto market and the positive trends may continue to make a significant impact in 2024 too. Out of all these predictions, Bitcoin’s prediction seems to be the most promising. This is because several market forces are favoring its high growth. The trends also indicate that accounting standards are bound to improve because governments, central banks, and financial institutions are showing renewed interest in the crypto sector.
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