The Bitcoin market, which achieved rapid growth in 2023, is expected to solidify its footing this year. Despite trading in a range and the hype of spot ETF approvals fading, analysts still predict another good year for the OG crypto. According to a TechFlow report, the trajectory of Bitcoin growth in 2024 is clear and favorable.
Financial institutions predict upside growth for Bitcoin
TechFlow’s report is a combination of various institutions and their predictions about Bitcoin’s likely trajectory. This report not only reflects numerous opinions but also compares the parameters of future exposure of the digital asset market.
The agency’s forecasts for the growth of the Bitcoin ecosystem this year are largely positive, according to a translated version of the report.
This includes Bitwise, which expects the price of Bitcoin to exceed $80,000 in 2024. According to Coinbase, his main focus will continue to be institutional investing in Bitcoin, at least through the first half of 2024.
The outlook for virtual assets rides on infrastructure developments. Infrastructure improvements and programmable features such as the creation of fundamental protocols such as ordinal and layer 2 will be added to the Bitcoin ecosystem in the near future.
Bitcoin halving changes the supply and demand of Bitcoin
Every four years, or after 210,000 blocks have been mined, Bitcoin miners receive half a block reward. This event is known as a “halving” because the amount of new Bitcoin in circulation is cut in half.
The reason why the halving event is so important to the Bitcoin community is because it signifies a further reduction in the rate of Bitcoin production. This event indicates that Bitcoin’s supply is nearing depletion. In 2009, 50 Bitcoins were awarded for mining each block in the chain. As of October 2023, only approximately 1.5 million Bitcoins will be released through mining awards. This is out of approximately 19.5 million Bitcoins in circulation.
Every time a halving event occurs, the Bitcoin demand and supply ecosystem changes. After the halving, the pace of BTC appreciation will slow down. This indicates that the amount of new coins coming to the market is decreasing.
Ethereum network and Solana head towards bullish management
Apart from the Bitcoin environment, Ethereum is considered a pioneer in the field of smart contracts. Given the release of the Ethereum 2024 roadmap by Vitalik and the impending Cancun upgrade, many institutions are anticipating significant developments in Ethereum Layer 2, especially in 2024. The value of ARB, OP, and other Ethereum Layer 2 project tokens has skyrocketed recently.
There is always fierce competition in the public chain ecology. Public chain ecosystems such as Avalanche and Solana grew rapidly in his 2023. Its momentum has even surpassed Ethereum. But leader Ethereum is also starting to make an impact. The completion of the Cancun upgrade and additional reductions in gas prices are the basis of most institutional forecasts and could accelerate the boom in the Ethereum Layer 2 ecosystem in 2024. According to Bitwise, significant upgrades to the Ethereum blockchain will reduce average transaction costs to less than 2024. For $0.01, you’re ready for broader adoption.
Regarding Solana, this year is expected to be a bullish one as the blockchain platform gains widespread popularity and demand. Many organizations predict that the Solana ecosystem will continue to thrive. The forecast also includes additional projects that decide to migrate to or already become part of the Solana Public Chain in 2024. Solana is highly resistant to attacks, including attacks from TPS, gas prices, and community users.