LUCKNOW (CoinChapter.com) — VanEck’s Bitcoin prediction for 2024 anticipates the BTC price to cross above $69,000, its highest level on record. The asset management firm anticipated the bullish outcome in its cryptocurrency market outlook report, further suggesting that Binance, the world’s largest crypto exchange by volume, won’t remain at its top position in 2024.
Key Factors Behind VanEck’s Bitcoin Prediction
VanEck’s Bitcoin prediction for 2024 draws cues from a combination of factors. Firstly, the firm argues that the long-anticipated US recession will finally materialize in 2024. Furthermore, it predicts that the regulatory shifts stemming from the 2024 US presidential election could provide additional tailwinds.
VanEck is one of those major financial institutions seeking regulatory approval to launch spot Bitcoin ETF and Ethereum ETF. Firms like BlackRock, Fidelity, and others are also jockeying to bring the first spot cryptocurrency ETFs to market.
$2.4 Billion Will Flow Into New Bitcoin ETFs In Early 2024
VanEck’s Bitcoin prediction for 2024 draws cues from beliefs that the SEC will approve a spot Bitcoin ETF in the first quarter of 2024.
Specifically, the firm predicts that over $2.4 billion could flow into the newly launched Bitcoin spot ETF in the first quarter of 2024 alone. The 2024 Bitcoin “halving” event may see minimal short-term impact. Nevertheless, VanEck believes ensuing bullish sentiment will help drive Bitcoin to fresh all-time highs in Q4 2024, potentially accelerated by political and regulatory events surrounding the Nov. 5, 2024, US presidential election.
VanEck’s Bitcoin Prediction 2024 in Context of Ethereum
VanEck’s Bitcoin prediction for 2024 is bullish also due to its ability to outperform altcoins in the year, primarily Ethereum. The firm forecasts that Ethereum would outperform major tech stocks in 2024 but it won’t overtake Bitcoin’s top market cap ranking.
“Like past cycles, Bitcoin will lead the market to rally, and the value will flow into smaller tokens just after the halving. ETH won’t begin outperforming Bitcoin until post-halving and may outperform for the year, but there will be no ‘flippening,’” VanEck writes.
Will Binance Lose Its Crown?
VanEck anticipates that Binance, as a centralized exchange, will lose the top position by trading volume.
This could happen as rival exchanges like Coinbase, OKX, Bybit, and Bitget continue vying for leadership positions. Binance has faced mounting regulatory pressures around the world, culminating recently in CEO Changpeng Zhao stepping down as part of a $4 billion settlement deal with the US Department of Justice.
Beyond Bitcoin, VanEck predicts the overall stablecoin market capitalization will hit $200 billion in 2024.
They also believe Circle’s USDC stablecoin will regain traction after losing ground recently. Decentralized exchanges are expected to reach record spot trading volumes next year. However, KYC-compliant DeFi platforms will likely overtake non-KYC alternatives, with Ethereum ecosystem solutions like Uniswap Hooks seeing substantial adoption.
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