Pantera Capital: What to Expect in the Crypto Ecosystem in 2024? Will Bitcoin Rise?

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• Pantera Capital has released its annual Bitcoin (BTC) and overall industry projections, highlighting expectations of more bullish activity for the market leader.
• Bitcoin is expected to double its efforts by the end of 2023, with several factors this year likely triggering a new price increase.
• The fourth quarter of 2023 was filled with optimism about the approval of the spot Bitcoin ETF, leading to a price rally that surpassed $44,000 before a market correction.

Cryptocurrency management company Pantera Capital has revealed its cryptocurrency expectations for 2024: How will Bitcoin behave?

Pantera Reveals Crypto Expectations for 2024

Pantera has disclosed its annual Bitcoin (BTC) and general industry projections with an expectation of more bullish activity for the market leader. The recent market report by the company emphasizes the predicted movement of Bitcoin’s price value. Pantera Capital’s Bitcoin price forecast includes past references and future increases around cryptocurrencies, innovations such as decentralized finance (DeFi), tokenization, and Zero-Knowledge Proofs.

Bitcoin is expected to double its efforts by the end of 2023, with several factors this year likely triggering a new price increase. According to the report, Bitcoin made a comeback last year. Its market share rose from about 38% in December to approximately 52% after a 55% value reduction in January.

This year, the Bitcoin halving, approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC), and the approval of more programmable features are mentioned as reasons for the expected revival of the asset. Traditionally, BTC halving is associated with a bullish phase accompanied by a decrease in mining rewards, signaling a reduction in the cryptocurrency’s supply and an increase in demand.

The halving in April will reduce mining rewards from the current 6.25 BTC to 3.125 BTC. As a result, miners increase activity and accumulate fundamental assets before the event. According to a survey, about 79% of digital asset users view the upcoming halving positively due to expectations of price increases.

Bitcoin’s price has increased by 401% since the last halving in 2020. Users also note that the asset’s impact on the 2021 bull run, where the cryptocurrency reached an all-time high above $63,000, was not the sole reason for the surge.

Institutional appetite is expected to be the driving force

The fourth quarter of 2023 was filled with optimism about the approval of the spot Bitcoin ETF, leading to a price rally that surpassed $44,000 before a market correction. Many analysts projected that the ETF would create a new window allowing institutional investors to enter the market. Additionally, approval is expected to encourage more regulation around the asset.

However, after approval, the asset’s price dropped, and as of writing, Bitcoin is trading at $41,005. Nevertheless, many believe that institutional appetite leads to more exposure and adoption. According to the Pantera Capital report, the Bitcoin ecosystem will see layer 2 networks supporting scalability and smart contracts, leading to more use cases.