Bitwise Investments has once again demonstrated its ability to predict crypto market trends.
In a year full of surprises, the firm has been right on track with several of its bold predictions made in December 2023, where it outlined its vision for the innovative potential of cryptocurrencies, despite the challenges facing the sector at the time.
Matt Hougan, Bitwise’s chief investment officer, presented the results of these predictions in a recent article, highlighting that 2025 is shaping up to be a year of significant growth for the crypto industry. This growth will be driven by key factors such as Donald Trump’s return to the presidency, increased institutional investment, and a more favorable regulatory environment for cryptocurrencies.
Bitwise had predicted Bitcoin to surpass $80.000 this year
One of the predictions Bitwise's most notable prediction for 2024 was that Bitcoin would trade above $80.000, setting a new all-time high. This prediction was more than fulfilled, as the price of Bitcoin crossed the $80.000 barrier in November and continued its climb to reach $XNUMX. $107.780 dollars, its current all-time high price (ATH).
Bitwise’s thesis, that Bitcoin spot ETF approval and the Bitcoin halving would combine to boost prices, turned out to be accurate.
Source: CoinMarketCap
The Bitcoin halving, which occurs every four years and halves the reward for mining new blocks, is an event that has historically proven to impact the price of the cryptocurrency. Additionally, the SEC’s approval of spot Bitcoin ETFs in January provided a more accessible institutional investment channel, attracting increased demand and, consequently, a surge in the cryptocurrency’s price.
Bitcoin spot ETFs would be the most successful launch in history
Another accurate prediction from Bitwise was the approval and resounding success of the Bitcoin Spot ETFs. These ETFs, which were approved in January of this year, have become the most successful ETF launch of all time.
As of December 15, 2024, Bitcoin ETFs had already attracted $35.000 million in tickets, far surpassing the previous record set by the Invesco QQQ Trust (QQQ) in 1999, which raised $5.000 billion in its first year.
Source: SoSo Value
The approval of these investment instruments has been a crucial step in legitimizing Bitcoin as an institutional asset class. Institutional investors, seeking to diversify their portfolios and access Bitcoin's volatility and performance potential, have found in these ETFs a safe and regulated way to do so. This approval has opened the doors to greater adoption and trust in the crypto market, which is reflected in the exponential growth of funds invested in BTC.
AI assistants would adopt cryptocurrencies as “Native Currencies of the Internet”
Bitwise also predicted that AI assistants would use cryptocurrencies to pay for things online, claiming that cryptocurrencies are “the native currency of the internet.” This prediction came to fruition in July, when venture capitalist Marc Andreessen donated $50.000 worth of bitcoin to an AI bot named Truth TerminalThis bot, in turn, promoted a meme coin called Goatseus Maximus (GOAT), which currently has a market value of $674 million.
This experiment demonstrated the potential of AI assistants to facilitate cryptocurrency transactions, which could revolutionize online commerce and the digital economy. The ability of AI bots to autonomously and efficiently make cryptocurrency payments could pave the way for greater adoption of these currencies in the future.
Prediction markets could be the new “killer app” for cryptocurrencies
Another accurate prediction from Bitwise was that over $100 million would be wagered on prediction markets, making them a new “killer app” for the crypto world. This prediction came true in an outstanding way, as total amounts wagered on platforms like Polymarket jumped from $8 million in December 2023 to over $500 million at peak levels in 2024.
Polymarket, in particular, became a household name during the 2024 US presidential election, thanks to its ability to allow users to bet on the outcome of this event.
Source: DeFi Llama
Transaction costs on Ethereum could fall below $0,01
Bitwise’s last accurate prediction was that a major upgrade to the Ethereum blockchain would push the average transaction cost below $0,01, paving the way for more mainstream uses of the blockchain. This prediction came true when Ethereum’s “Dencun” upgrade, implemented in March 2024, reduced fees on Layer 2 networks by 99%.
Bitwise predicts an exciting and wild 2025 for the crypto industry
Bitwise has proven its ability to accurately forecast crypto market trends, hitting several of its boldest predictions for 2024. The firm has indicated that it will soon release its predictions for 2025, aiming even higher and anticipating a year full of opportunities and significant growth for the cryptocurrency industry.
The Trump presidency, increasing institutional investment, and more favorable regulation are some of the factors that could scale the crypto market to new heights in 2025. Trump has shown an interest and favorable stance towards cryptocurrencies, which could translate into policies that encourage their adoption and development. Institutional investment, which has already demonstrated its impact in 2024, will continue to be a key driver of growth. Moreover, clearer and more favorable regulation could provide the stability and confidence needed to attract more investors and users.
