As the end of the year approaches, experts turn their eyes to the future uncertain, but exciting of the cryptocurrency market. Her name is VanEck. It is an asset management company and is well respected in the industry. She shares its bold predictions for 2024. The predictions affect questions related to the potential approval of a bitcoin ETF, dynamics that altcoins and NFTs are moving.
This expertise from VanEck provides extraordinary insight that promises to be next year. Without any exaggeration, this work of the VanEck company of 2024 will become a guide for people wanting to navigate a world of cryptos that never stop moving. The first part of the article will show the performance of Bitcoins and Ethereum cryptos. The second part will focus on other developments in cryptocurrencies.
As a reminder, a bitcoin ETF, also called an exchange-traded fund on the Bitcoin is a financial product that represents a portion of the underlying bitcoins. With an ETF an investor can trade assets like Bitcoin on markets without having to hold a cryptocurrency. As for the NFT, it’s a token, no. fungible and it is a computer object tracked, stored, authenticated thanks to blockchain protocol to which an identifier is attached digital, which makes it unique and non-fungible.
The asset management company announces in its outlook a slowdown in economic activity and signs of declining trends as well. Same time and in this situation, approval of ETF is expected in the United States. This is also seen as a major event because like the economy American remains vulnerable, more than 2.4 billion dollars will be paid into ETF transactions at the level of the first quarter of 2024. According to analysts, this situation could support Bitcoin prices above $30,000, in average.
Transaction dynamics will initially start at a 1 billion level. dollars especially since the ETF is pegged to gold. Towards the end of the term there will be a accumulation of 2.4 billion to support this initial influx. Overall, it A faster rate of adoption of ETFs is expected. After reaching a certain maturity, the market could channel 1.7% of the entire market at counting which represents 40.4 billion dollars during the first two years of activity.
Furthermore, other data makes certain analysts at the VanEck company think that the price of bitcoin could completely explode. Data taken into account also concern the optimistic outcome of certain elections around the world, the end of programs that inhibit growth, supporting all of this with changes potential regulatory requirements. These circumstances will undoubtedly move in the right direction meaning and if this is the case, bitcoin could then reach a historic level of 100,000 dollars in December 2024. We must also not forget that bitcoin could interest investors from other regions of the world such as the Middle East, Asia and Latin America. The example of Argentina is interesting. She could become the 5th country in the world to approve bitcoin mining at the level of the state.
The predictions for Ethereum are very clear. In 2024 Ethereum will not be able to not overtake Bitcoin. But it will confirm its position as the second crypto- most important currency. It will be able to outperform other cryptocurrencies. In On the other hand, according to experts, the year 2024 will be more difficult for Ethereum. He will losing crypto market share due to difficulties in its upgrades. Other blockchains such as Solana will benefit a lot from this.
Even if many challenges will put Ethereum in difficulty, it also retains a possibility of surpassing bitcoin in terms of performance. However, this option will not be able to last and therefore it will not be able to change their position respective market.
Other analysts believe that with the establishment of the EIP-4844 or proto- danksharding, it is expected that Ethereum layer 2 solutions should dominate TVLs, which is a unit of measurement of cryptocurrencies stored or locked. Two important results are expected: an increase in capacity in volumes compatible with virtual environments of Execution (EVM) which are made to execute smart contracts on the Ethereum blockchain. And then the reduction in transaction costs which will increase arbitrage possibilities and increase the volume of trades.
