Bitcoin to Likely Perform Well in 2024 as Market Turns Bullish: Report

After a skyrocketing growth in 2023, the Bitcoin market is set to make its ground firm this year. Despite range-bound trading and a waning hype of Spot ETF approval, analysts are still predicting the OG cryptocurrency to have a good year ahead. According to a report by  TechFlow, the tracks for Bitcoin’s growth in 2024 are clear and good.

Institutions predict upside growth for Bitcoin

TechFlow’s report combines various institutions and their prediction for the possible trajectory of Bitcoin. Not only does the report bring a plethora of opinions onboard, but it also compares the parameters of upcoming exposure of the digital asset market.

According to a translated version of the report, institutional predictions for the growth of the Bitcoin ecosystem this year are largely positive.

This includes Bitwise predicting the price of Bitcoin rising above $80,000 in 2024. According to Coinbase, institutional investment in Bitcoin will remain the primary emphasis, at least in the first half of 2024.

The outlook for virtual assets rides on the development of infrastructure. Infrastructure improvements and programmable features, such as the creation of fundamental protocols like Ordinals and layer 2, will be added to the Bitcoin ecosystem in the near term.

Bitcoin Halving to change Bitcoin’s supply and demand

Every 4 years, or after 210,000 blocks have been mined, Bitcoin miners receive a block reward that is halved. Because it reduces the amount of fresh bitcoins issued into circulation by half, this event is known as the “halving.”

The reason the halving event matters so much to the Bitcoin community is because it represents a further decline in the rate at which Bitcoin is created. The event signifies the supply of Bitcoin getting closer to being exhausted. 50 bitcoins were awarded for mining each block in the chain in 2009. Only roughly 1.5 million bitcoins remained to be released through mining awards as of October 2023. This is out of the approximately 19.5 million in circulation.

Every halving event changes the supply and demand ecosystem of Bitcoin. Following a halving, the pace of escalation of BTC falls. This indicates a decrease in the quantity of new coins coming onto the market.

Ethereum network and Solana head toward a bull run

Apart from the Bitcoin environment, Ethereum is considered a trailblazer in the field of smart contracts. Many institutions anticipate significant developments in Ethereum Layer 2, particularly in 2024, given the release of the Ethereum 2024 roadmap by Vitalik and the impending Cancun upgrade. The values of ARB, OP, and other Ethereum Layer 2 project tokens have lately skyrocketed.

The public chain ecology has always seen intense competition. Public chain ecosystems like Avalanche and Solana have grown quickly in 2023; their momentum has even overtaken that of Ethereum. But Ethereum, the leader, has also started to have an impact. The completion of the Cancun upgrade and additional reductions in gas prices are the foundation of most institutional projections, which might fuel the Ethereum Layer 2 ecosystem’s boom in 2024. According to Bitwise, a significant Ethereum blockchain upgrade would lower the average transaction cost to less than $0.01, setting the stage for wider adoption.

As for Solana, the wider popularity and demand for the blockchain platform is set for a bull run this year. Numerous organizations forecast that the Solana ecosystem will continue to flourish. Predictions also include additional projects deciding to move to or already be part of the Solana public chain in 2024. Because Solana is more resilient to attacks, whether they come from TPS, petrol prices, or community users.