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VanEck Report: Bitcoin ETF Gears Up for $2.4 Billion Surge with Q4 2024 ATH Prediction

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  • VanEck forecasts significant developments in 2024, including a U.S. recession coinciding with the launch of Bitcoin ETFs and Bitcoin’s price reaching an all-time high in Q4.
  • Ethereum is expected to retain a strong market position, but face competition from other smart contract platforms, while stablecoins are predicted to surpass a $200 billion market cap.

VanEck’s Vision for Bitcoin in 2024

Financial powerhouse VanEck has released a series of striking predictions for Bitcoin and the broader cryptocurrency market in 2024, authored by Matthew Sigel, Head of Digital Assets Research, and Patrick Bush, Senior Investment Analyst.

Navigating Economic Turbulence and Bitcoin ETFs

VanEck starts its forecast from a macroeconomic perspective, anticipating a U.S. recession in early 2024. This economic downturn is expected to coincide with the launch of the first spot Bitcoin ETFs in the United States, with projections of substantial inflows into these ETFs, totaling $2.4 billion within a quarter. This move indicates a resilient Bitcoin market, even amidst broader economic challenges.

The Fourth Bitcoin Halving and Its Impact

The analysts predict that the fourth Bitcoin halving in April 2024 will proceed smoothly, potentially driving Bitcoin’s price past $48,000. This surge is expected to be fueled by reduced coin issuance and a consolidation in the mining sector, along with increased adoption by entities in Latin America, the Middle East, and Asia.

Ethereum’s Role and NFT Market Rebound

Despite Ethereum not surpassing Bitcoin in market cap, it is forecasted to outshine all mega-cap tech stocks in performance. Post-halving, Ethereum is expected to lose market share to other smart contract platforms like Solana, despite its strong performance in 2024. Following Ethereum’s implementation of EIP-4844, Layer 2 solutions are projected to capture the majority of EVM-compatible TVL and trading volume. Additionally, the NFT market is expected to achieve new heights in volumes.

Exchange Dynamics and Stablecoin Surge

In the realm of exchanges, Binance is predicted to lose its top spot in spot trading, with competitors like OKX and Coinbase gaining prominence. The stablecoin market is projected to exceed a $200 billion cap, with a shift in preference from USDT to USDC.

The Advent of Bitcoin Yield and Blockchain Gaming

Bitcoin is anticipated to find new applications in remittances, with “Bitcoin Staking” becoming a prevalent narrative. Blockchain gaming is expected to witness a breakthrough, with at least one game surpassing 1 million daily active users.

Solana’s Rise and Regulatory Shifts

Solana is predicted to ascend as a top three blockchain by market cap, TVL, and active users, driven by its efficiency and growing DeFi adoption. Decentralized physical infrastructure networks are also expected to gain substantial traction.

Future of Cryptocurrency Accounting and KYC in DeFi

Changes in accounting guidelines could favor cryptocurrency inclusion in corporate holdings, potentially leading to increased corporate investment in digital assets. KYC integration in DeFi is foreseen to attract institutional liquidity and volume, marking a significant shift in the sector.

As 2024 approaches, VanEck’s predictions paint a picture of a dynamic and evolving cryptocurrency landscape, marked by technological advancements, regulatory changes, and shifts in market leadership.

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AnnJoy Makena
AnnJoy Makenahttps://www.ethnews.com
Annjoy Makena is an accomplished and passionate writer who specializes in the fascinating world of cryptocurrencies. With a profound understanding of blockchain technology and its implications, she is dedicated to demystifying complex concepts and delivering valuable insights to her readers. Business Email: info@ethnews.com Phone: +49 160 92211628