Cryptocurrency: Five crypto market trends that could define 2024
The cryptocurrency market is poised for significant developments in 2024, with Bitcoin expected to lead the way due to factors like the potential approval of a spot Bitcoin ETF and the upcoming Bitcoin Halving event, says Manu Shankar
FollowThe year 2023 saw the cryptocurrency market recover and bounce back strongly from its slumber of 2022. The year 2024 brings in optimism and enthusiasm for the investors. Indeed, 2024 is expected to be a pivotal year for cryptocurrencies such as Bitcoin, one that will be characterised by explosive growth, government involvement, evolving regulatory policies, and balancing between innovation and security.
With the Bitcoin ETF approval around the corner (January 10) along with the Bitcoin Halving event, the launch of spot ETF could leave 2024 with a historical footprint in the crypto space. This may result in the cryptocurrency market creating new records as we head into 2024. Let's look at some crypto trends to watch out for 2024 in this context.
2024 will be the year of Bitcoin
Bitcoin had a fruitful 2023, as the digital currency rallied 173.8% over the past year. With the potential approval of the spot Bitcoin ETF due this year and the Bitcoin Halving event, many experts believe BTC could set new highs this year. As it stands, BTC has already crossed the $45,786.26 mark, which has fueled the market with optimism.
A blend of influential factors suggests a potential supercycle is underway. This optimism is rooted in several key factors strengthening Bitcoin's potential for unprecedented growth. Historically, halving events that reduce the reward for mining new blocks results in significant upticks in Bitcoin's value.
This reduction in supply, coupled with a steady or increasing demand, is leading to a supply crunch. As a result, there may not be enough Bitcoin available for purchase, which will drive the price higher to incentivise long-term holders to sell. As a result, many predict that 2024 may be the year of Bitcoin as its price may reach unprecedented highs, and more participants may enter the market.
Increase in Crypto Adoption
With the institutional investors pumping in big money, the crypto market would see more money pumped in. With significant financial institutions like Blackrock, Fidelity, etc. participating in the spot ETF space, the flow of institutional money into the cryptocurrency space is bound to increase in 2024. Having said that, the only question that remains to be seen is whether retail buying of cryptocurrencies will come under the purview of the US Securities and Exchange Commission (SEC).
Doge Coins continue to underperform
Many would disagree with this, but one of the reasons for this potential trend is due to its utility factor. Although both Dogecoin and Shiba Inu ramped up 30.4% and 32.6%, respectively, they are nothing more than payment coins. Currently, plenty of digital currencies could, in theory, be used to pay for goods and services. And the two leading coins offer nothing extra to differentiate from countless other projects. Therefore, many believe they might see the odd rally, but they will continue to underperform in the market.
Crypto markets continue to mimic Wall Street movement
The synchronisation between the two markets was visible in 2022 and will continue in 2024. Globally, the crypto markets became a game-changer, especially during the Covid-19 period. But in 2024, we may increasingly see the digital currency mimic the Wall Street movements and the benchmark indexes' performance, such as the S&P 500, determining how well or poorly the crypto market performs.
Increasing regulatory developments and clarity
Regulatory scrutiny has been a constant in cryptocurrency, and 2024 is expected to bring further clarity and developments in this area. Governments and regulatory bodies worldwide are working to establish clear frameworks for operating crypto assets and blockchain projects. This regulatory clarity could open the door for more institutional participation and investor confidence, driving mainstream adoption of cryptocurrencies.
So, as we continue to navigate through 2024, the cryptocurrency landscape is set to witness significant transformations. From the evolution of DeFi to the broader adoption of NFTs and the implementation of sustainable practices, the crypto space is becoming more diverse and inclusive. It would be safe to say that the coming year promises continued growth and maturation for the crypto space, making it an exciting time for those involved in this dynamic and evolving ecosystem.
The author is the editor of coincryptoverse.com and a seasoned writer with over 18 years of industry experience in writing on topics such as Web3, Metaverse, and cryptocurrencies.
