1. The G7 or BRICS countries will establish strategic Bitcoin reserves.
The Trump administration proposed establishing a strategic Bitcoin reserve (SBR) for the United States. By signaling the possibility of an SBR, the U.S. is effectively inviting other major countries to consider similar initiatives. Major countries are racing to incorporate Bitcoin into their reserve strategies, diversifying their holdings alongside traditional assets like gold, foreign currencies, and sovereign bonds.
2. The market capitalization of stablecoins will double to $400 billion.
In 2024, the circulation of stablecoins will reach an all-time high of $200 billion, with market leaders being Tether and Circle. These digital currencies rely on blockchain networks like Ethereum, Solana, and Tron to facilitate seamless, borderless transactions.
The passage of specialized legislation for stablecoins will drive this growth, potentially providing much-needed regulatory clarity and fostering innovation in the industry. U.S. regulators are increasingly recognizing the strategic importance of stablecoins in strengthening the global dominance of the dollar and solidifying its status as the world's reserve currency.
3. The Bitcoin DeFi ecosystem will achieve rapid growth with the help of L2 networks like Stacks, BOB, and Babylon, with locked value expected to exceed the current $24 billion in wrapped Bitcoin.
Bitcoin is transcending its role as a store of value, with second-layer (L2) networks like Stacks, BOB, and Babylon unlocking the potential of a thriving Bitcoin DeFi ecosystem.
2024 is a transformative year for Stacks, launching the Nakamoto upgrade and sBTC. The Nakamoto upgrade allows Stacks to inherit 100% Bitcoin certainty and introduces faster block speeds, significantly improving the user experience. Meanwhile, the trustless Bitcoin-pegged asset sBTC, launched in December, enables seamless participation in DeFi activities such as lending, swapping, and staking—all built on the security of Bitcoin.
Reliance on centralized custodians like WBTC (BitGo), BTCB (Binance), and cbBTC (Coinbase) exposes users to centralization and censorship risks. Bitcoin L2 reduces these risks, offering a more decentralized alternative that allows Bitcoin to operate natively within its own ecosystem.
The total value locked (TVL) on Bitcoin L2 will exceed the current $24 billion represented by wrapped Bitcoin derivatives, accounting for approximately 1.2% of Bitcoin's total supply. As Bitcoin's market capitalization reaches $2 trillion, L2 networks will enable users to unlock this immense potential value more safely and efficiently, solidifying Bitcoin's status as a cornerstone of decentralized finance.
4. Crypto ETF products will expand to include Ethereum staking and tracks like Solana.
ETFs attracted over $108 billion in assets under management (AUM) in their first year of launch. Major players like BlackRock, Fidelity, and Ark Invest have played a key role in bringing regulated Bitcoin risk exposure to traditional financial markets. Staking will first be integrated into Ethereum ETFs in 2025.
Solana is known for its high-performance blockchain, thriving DeFi ecosystem, and rapid growth in gaming, NFTs, and memecoins. Solana's ETF will be launched soon.
5. Tech giants like Apple and Microsoft may follow Tesla's lead in accumulating Bitcoin.
The Financial Accounting Standards Board (FASB) in the United States has introduced fair value accounting rules for cryptocurrencies, which will take effect for fiscal years beginning after December 15, 2024. These new standards require companies to report their holdings of cryptocurrencies like Bitcoin at fair market value, capturing gains and losses from market fluctuations in real time.
The seven giants—Apple, Microsoft, Google, Amazon, Nvidia, Tesla, and Meta—collectively hold over $600 billion in cash reserves.
6. The total market capitalization of the cryptocurrency market will surpass $8 trillion.
7. An improved regulatory environment in the U.S. will drive a resurgence in crypto entrepreneurship.