Asset management giant VanEck released a comprehensive forecast for the cryptocurrency market in 2024, projecting significant developments and shifts.
Key among these predictions was the expectation that more than $2.4 billion would flow into Bitcoin BTC/USD ETFs, leading to a record high for Bitcoin in the fourth quarter of 2024.
Additionally, VanEck anticipated Binance BNB/USD would lose its top spot in spot trading and the market value of stablecoins would surge to an all-time high, exceeding $200 billion.
Bitcoin ETFs And Market Dynamics
VanEck predicted a substantial influx of funds into Bitcoin ETFs in the first quarter of 2024, exceeding $2.4 billion. This influx was expected to keep Bitcoin prices elevated, despite potential volatility.
The firm based its estimates on historical inflows into the SPDR Gold Trust GLD ETF, adjusted for current economic conditions, including a significantly higher money supply in 2023 compared to the era of the ETF's launch.
Bitcoin's Price Trajectory And Halving Event
The report also forecasted Bitcoin will reach an all-time high in the fourth quarter of 2024.
This surge was expected to follow the Bitcoin halving event in April 2024, which VanEck believed would occur without major disruptions.
The halving, a routine event that reduces new coin issuance by half, was anticipated to lead to a brief period of market consolidation before a significant price rally.
Binance's Market Position And Stablecoin Growth
In a notable market shift, VanEck predicted Binance would relinquish its position as the number one centralized exchange by volume.
This change was attributed to the exchange's settlement with U.S. regulators and the emergence of well-funded competitors.
Concurrently, the stablecoin market cap was projected to reach new heights, driven by regulatory developments and increased trading volumes.
Ethereum's Performance and the Rise of Layer-2 Solutions
While Ethereum ETH/USD is expected to outperform major tech stocks, VanEck does not foresee it surpassing Bitcoin in market value.
However, Ethereum's Layer-2 solutions are predicted to capture the majority of EVM-compatible Total Value Locked (TVL) and volume post-EIP-4844, an upgrade aimed at reducing transaction fees and improving scalability.
Read Next: Bitcoin Short Sellers Beware: Analyst Sees No Sign Rally 'Overheated'
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