Bitwise predicts the BTC exchange rate to rise to $80 000 in the new year

The material is not an investment recommendation and is published for informational purposes only.

What’s new? In 2023, bitcoin outperformed all major asset classes in terms of returns, analysts at investment company Bitwise noted in a new report. For example, it has added 128% since the beginning of the year, while the S&P 500 stock market index, gold, and bonds have only added 21%, 12%, and 2%, respectively. Given the upcoming halving of the Bitcoin network and the possibility of launching spot exchange-traded funds (ETFs) based on BTC in the US market, the company allows the possibility of the asset’s rate to set a new all-time high at $80 000 in 2024.

Bitwise’s report

What else is known? For example, the launch of spot bitcoin ETFs in the United States, which analysts expect in early 2024, will lead to an inflow of new capital from retail and institutional investors and an increase in demand for the asset. At the same time, the number of bitcoins coming into circulation will be halved after the halving next April. At current prices, this is equivalent to a reduction of $6,2 billion annually for four years until the next halving. So the combination of increased demand and reduced supply will lead to higher prices.

Halving is code’s embedded cut in half of the reward to miners for a mined block on the blockchain, which occurs approximately every four years. Initially, miners received 50 BTC; on November 28, 2012, the number dropped to 25 BTC, on July 9, 2016, to 12,5 BTC, and on May 11, 2020, to 6,25 BTC. In April 2024, the award will be cut to 3,125 BTC.

The company believes that the launch of spot BTC ETFs will be the most successful in the history of exchange-traded funds. According to Bitwise’s research, such products could grow a 1% share of the entire $7,2 trillion exchange-traded fund market within five years.

Bitwise itself, along with BlackRock, VanEck, and other investment firms, is also awaiting approval to launch a spot BTC ETF from the US Securities and Exchange Commission (SEC).

VanEck predicts $2,4 billion in inflows into BTC ETFs after their approval in early 2024

According to analysts, the product will quickly enter the mainstream thanks to zero commissions

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Meanwhile, the Bitwise investment product has already been assigned an identification code within the CUSIP system, which is used for financial instruments. It has appeared on the website of the Depository Trust and Clearing Corporation (DTCC), which conducts trades for the Nasdaq stock exchange, under the ticker BITB.

As of December 14, 09:45 UTC, BTC is trading at $42 850 on Binance, having added 4,07% in 24 hours.