Bitwise Thinks That 2024 Will Bring Taylor Swift NFTs and a New All-Time High for Bitcoin

Bitwise posits that the cryptocurrency industry is poised to transition into a phase of widespread adoption, commonly referred to as the “mainstream era,” as we approach 2024. In light of this, they have enumerated ten predictions that shed light on the anticipated developments in the upcoming year.

In 2023, bitcoin demonstrated superior performance to major asset classes, with a year-to-date increase of over 150%, surpassing the S&P’s 22%, Nasdaq’s 40%, and gold’s 12%. Bitwise analysts anticipate that this positive trajectory will persist, projecting a new record high for Bitcoin above $80,000 in 2024, as stated in a report.

The analysts cite two main catalysts. An influx of capital is expected due to the potential approval of spot bitcoin ETFs. This could result in capturing approximately 1% of the $7.2 trillion U.S. ETF market, equivalent to $72 billion, over five years.

Additionally, it is worth noting that the upcoming Bitcoin halving event, which involves a reduction in the block reward, is anticipated to occur in April. According to Bitwise, an estimated annual decrease of $6.2 billion in new bitcoin is entering the market.

The approval of an exchange-traded fund (ETF) that trades bitcoin in the United States by the Securities and Exchange Commission is still pending, despite the prior approval of futures-based funds in 2021. The upcoming deadlines for the Securities and Exchange Commission (SEC) to make determinations regarding various firms’ applications are scheduled for mid-January.

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According to Bloomberg analyst James Seyffart, there is a high likelihood, estimated at 90%, that the approval of a spot bitcoin ETF may occur between January 5 and January 10. Based on The Block’s price data, Bitcoin is trading at $42,409, reflecting an 18% increase over the past month.

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Tether (USDT)
Cardano (ADA)

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Ethereum’s Income Will Double and the Cost of Each Transaction Will Drop Below One Cent

A standard critique of blockchains is their lack of traditional cash flow generation. According to Bitwise, it has been stated that the assertion made regarding Ethereum’s hosting of numerous cryptocurrency applications and the subsequent generation of fees is incorrect.

According to analysts, Ethereum is projected to generate approximately $2.3 billion in fees this year. Furthermore, this figure is anticipated to surpass $5 billion by 2024 as cryptocurrency applications become more widely adopted. As a result, Ethereum is positioned as one of the rapidly expanding technological platforms globally.

Annual Ethereum Revenue Since 2019. Image: Bitwise

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Bitwise anticipates a substantial reduction in average user fees due to a significant Ethereum upgrade. According to analysts, the EIP-4844 upgrade, commonly referred to as Proto-Danksharding, has the potential to significantly reduce costs on Ethereum’s Layer 2 chains, such as Arbitrum, Base, and Optimism, bringing them down to less than $0.01 from the current average of $0.14. It is important to note that Ethereum’s base layer fees will remain considerably higher.

According to Bitwise, the potential benefits of this development include the expansion of use cases such as micropayments, social media, and large-scale gaming applications, which could ultimately facilitate widespread acceptance and integration.

NFTs Are a New Way for Taylor Swift to Connect With Her Fans

Taylor Swift, a renowned pop star whose Eras Tour has achieved a significant milestone by surpassing $1 billion in revenue, is reportedly considering venturing into the world of non-fungible tokens (NFTs) in 2024. This move is seen as a means for Swift to enhance her connection with fans further and aligns with her strong belief in artists’ rights to ownership and monetization of their music, as stated by Bitwise.

To analysts, NFTs have the potential to serve as a novel platform for various purposes, such as granting exclusive access to concerts, experiences, and new music. Additionally, they can enable fans to obtain partial ownership of songs through royalties. Major bands and artists, such as Snoop Dogg, Eminem, Kings of Leon, and The Chainsmokers, have demonstrated varying adoption and utilization of NFTs.

Bitwise also mentioned Spotify, where Swift has been the top-streamed artist this year. Spotify has been exploring token-gated playlists, which require specific NFTs to be unlocked, as a potential opportunity for Swift.

In the past year, Taylor Swift was among the celebrity influencers who successfully avoided a partnership with the now-defunct crypto exchange FTX. However, subsequent reports indicated that she was not the individual who declined the opportunity.

The Further Forecasts That Bitwise Has for the Months to Come

Bitwise experts project a significant increase in revenue for crypto exchange Coinbase, with an expected doubling from $2.8 billion to $5.7 billion next year. This surpasses average Wall Street expectations by over tenfold. The projected growth is attributed to the ongoing bull market, Coinbase’s expansion of its product offerings, and the company’s strategic positioning as the primary custodian for spot bitcoin ETFs.

The asset manager anticipates a higher settlement volume for stablecoins than Visa in the upcoming year. Additionally, JPMorgan plans to tokenize a fund and introduce it on-chain, aligning with the growing trend of tokenizing real-world assets on Wall Street. Furthermore, it is projected that by the end of 2024, approximately 25% of financial advisors will allocate funds to cryptocurrencies in their clients’ accounts.

Bitwise observes the emergence of AI assistants adopting cryptocurrency as a means of online payment, recognizing it as the inherent currency of the internet. Furthermore, a substantial stake of over $100 million in prediction markets indicates their potential to become significant applications within the cryptocurrency ecosystem.

In the previous year, Bitwise accurately anticipated the recovery of the crypto market, the doubling of Coinbase’s market capitalization, and the significant increase in staked ether by over 50%. However, their expectations regarding USDC surpassing USDT as the leading stablecoin globally and the passage of substantial crypto legislation by the U.S. Congress in 2023 still needed to be met.

Last week, VanEck, a prominent asset management firm, released its annual predictions for the upcoming year. VanEck foresees the imminent arrival of a long-anticipated U.S. recession in 2024. However, they maintain their expectation for the approval of spot bitcoin ETFs and the occurrence of the halving event to drive bitcoin prices to unprecedented levels by the fourth quarter.

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