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John Martin 16 Dec 2023 ◦ 9 min read

2024 Predictions for the Crypto Industry

2024 Predictions for the Crypto Industry

Cryptocurrency rallies have raised expectations for the growth of cryptocurrencies and the sector as a whole. As 2024 approaches, the world of digital assets seems ready for change and growth. In this study, we collected predictions from influential experts regarding where the cryptocurrency market could be headed.

Although these predictions are mostly optimistic, the cryptocurrency market is extremely volatile, so it is important to emphasize the importance of conducting your own research (DYOR) and caution when investing. This reminder comes to light of the inherent volatility of the market and the need for individuals to carefully assess their risk tolerance and investment strategies.

VanEck

VanEck is a global investment manager offering a range of investment products, including exchange-traded funds (ETFs) and exchange-traded notes (ETNs), focusing on digital assets and cryptocurrencies.

VanEck researchers started their list by speculating about the possible start of a recession in the US and the long-awaited approval of a spot bitcoin-ETF. They estimate that the new investment product will raise approximately $2.4bn, supporting the price of digital gold.

The fourth halving of the Bitcoin network will lead to "minimal market deviations,” but the asset's price will rise after the event, benefiting "some budget miners.”

According to the third prediction, the first cryptocurrency's exchange rate will hit a new all-time high in the fourth quarter of 2024, potentially driven by "political events and regulatory changes following the U.S. presidential election."

Ethereum won't be able to "topple" bitcoin, but will still outperform stocks of major tech companies.

Once proto-dank sharding (EIP-4844) is implemented, layer 2 networks capture most of the trading volume and block funds in the EVM-compliant protocols.

Experts believe that NFT activity has recovered to record-high levels. Ethereum will lead the way, while the Bitcoin network segment will continue to grow owing to the Ordinals protocol.

The seventh prediction is disappointing for the leading players: Binance will lose its leading position in spot trading, tightening the competition between OKX, Bybit, Coinbase, and Bitget. The daily turnover of Coinbase's futures market could exceed $1bn as "the inclusion of a regulated index will be key.”

The market capitalization of stablecoins is expected to exceed $200bn, reaching a new, all-time high. USDC is gaining market share owing to institutional adoption, particularly in emerging L2 networks.

Matrixport

Analysts of the Matrixport crypto platform in their recent report reiterated their February prediction of a $45,000 Bitcoin price by the end of 2023.

The company's head of research, Marcus Thielen, emphasized that the first cryptocurrency "does not move randomly.” The key drivers of its dynamics are "crowd psychology and macroeconomics," while "liquidity indicators and the state of market structures" are used to understand short-term trends.

According to Thielen, Bitcoin's current rally is developed in five phases:

  • The response to inflationary trends;
  • the development of the banking crisis;
  • a surge following BlackRock's filing for a spot ETF based on the first cryptocurrency;
  • stimulus through policy changes by the US Federal Reserve, which slowed key rate hikes;
  • the development of SEC rules regarding bitcoin spot exchange-traded funds. 

"Bankruptcy of cryptocurrency lending and borrowing platforms in 2022 and liquidation of banks linked to digital assets in March 2023. Retailers have had difficulty exchanging fiat money for cryptocurrency, which is why this year's rally has been largely centered on bitcoin rather than higher beta altcoins, which are typically favored by retail investors," said Matrixport experts in their report.

Researchers are now questioning how digital gold reacts to the approval of ETF. In late December, Matrixport predicted that Bitcoin would increase to $63,140 by April 2024 and $125,000 by the end of the following year.

Other sources

According to USA Today, historical patterns suggest that 2024 could be a good year for crypto prices. As of December 5, 2023, Bitcoin prices have increased by more than 160% annually, and Ethereum has performed well, with prices back above the $2,000 level and close to the new 52-week highs.

The article also notes that in 2016 and 2020, Ethereum had an average annual gain of 613%, indicating the potential for new highs in the cryptocurrency market. Furthermore, the Bitcoin halving event scheduled for 2024, which has historically been followed by a surge in Bitcoin price, is considered a positive indicator of a bullish market trend.

Pascal Gauthier, CEO of Ledger, in an interview with CNBC,  said “It feels that 2023 was a year to get ready for the bull run that is yet to come. However, the sentiment is very hopeful for 24-25”.

Standard Chartered, a British multinational bank, reiterated its April price call, stating that Bitcoin could reach $100,000 by the end of 2024 driven by the approval of numerous ETFs. This would represent a rally of approximately 160% of the price at the time, which was approximately $38,413.

While some experts are optimistic about these price targets, others have warned that the rally could be affected if ETF approval is not granted. The overall sentiment is hopeful, with many seeing strong fundamentals supporting the price of Bitcoin. The rate at which a new Bitcoin supply is created will be halved in April 2024, which has historically been a bullish event. The possibility of a spot Bitcoin exchange-traded fund (ETF) approved in the US and the possibility of the Federal Reserve cutting interest rates in 2024 are seen as additional bullish catalysts for Bitcoin.

Trends in the Crypto Market in 2024

The coming year is expected to bring several significant trends in the cryptocurrency industry. Some of them are old, and some are new, but experts are still picking them among the trends for the next year. These trends are expected to shape the future of digital finance and technology, offering new opportunities, applications, and challenges to businesses.

  • Central bank digital currencies (CBDCs) are expected to show a significant trend in the cryptocurrency market in 2024. Several countries are actively exploring the possibility of issuing their own digital currency. China has already made significant progress in this area with the development of the digital yuan. Ongoing progress and acceptance of CBDCs are expected to significantly affect the wider cryptocurrency industry.
  • Regulatory developments: Regulatory clarity and frameworks for cryptocurrencies are expected to evolve, affecting industry compliance standards and market dynamics.
  • DeFi and Web3: Decentralized finance (DeFi) and the broader concept of Web3 will continue to gain traction, potentially transforming traditional financial systems and digital interactions.
  • Sustainability and ESG: Environmental, social, and governance (ESG) considerations are expected to play a prominent role in shaping the direction of crypto projects and investments, reflecting a growing emphasis on sustainable practices.
  • Affordable cryptocurrency payments: One of the main outcomes of the next bullrun and the rise of mass adoption should be that in many countries, we will be able to pay for everything around us with crypto, from hotels to food in supermarkets. Many payment services for goods and airline tickets add cryptocurrency as a means of payment. It is partially possible to do this now, but you must look for such places.
  • Development of L2 solutions: This is a protocol that increases the capacity of layer 1 blockchains by executing off-chain transactions. They are built on top of Tier 1 blockchains (such as Optimism and Arbitrum on top of Ethereum) and designed to provide high throughput and efficiency.

Conclusion

As we wrap up our review of the cryptocurrency market outlook for 2024, cryptocurrencies continue to strengthen their role in our daily lives. The year ahead provides excellent opportunities to earn money in a bull market.

It is important to emphasize that despite optimistic growth projections for Bitcoin and other cryptocurrencies, you should not make any hasty financial decisions. Decisions should be made with a cool head to avoid risks and to maintain financial security.

Investment awareness and the use of reliable instruments are key to successful participation in the dynamic world of cryptocurrencies. You should stay informed, analyze market trends, and make informed decisions. This approach will help maximize opportunities to make money from cryptocurrency trends while maintaining financial stability.

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