Bull Market Signs Point to Crypto Optimism in 2024
The bear market has been long and challenging, but there are clear signs that the bull market is already here. The combined crypto market capitalization has surged nearly 93% in 2023, reaching $1.53 trillion as of December 5. As we approach 2024, it’s time to look forward to the next year and the potential catalysts that could drive the market.
Spot Bitcoin ETF Approval in the US
The US Securities and Exchange Commission (SEC) is expected to approve a spot Bitcoin ETF in early 2024. Meetings have taken place between SEC officials and crypto asset managers like Grayscale and BlackRock, indicating progress towards approval. Analysts believe the probability of SEC approval is around 90%, with expectations for approval between January 8 and 10. A Bitcoin spot ETF in the US would attract institutional investors and contribute to market growth.
Ethereum Dencun Upgrade
The Dencun upgrade for Ethereum is scheduled for Q1 2024. This upgrade will introduce proto-danksharding, a solution to Ethereum’s scalability issues. Sharding will partition the network into smaller pieces called shards, improving transaction speed and reducing costs during heavy usage. The upgrade will also optimize block space, reduce data storage costs, improve cross-chain communication, and enhance security.
The End of US Interest Rate Hikes
The Federal Reserve’s interest rate hiking cycle is expected to end in 2024 as US inflation decreases. A rate cut is anticipated as early as May 2024, which will strengthen positive sentiments in the cryptocurrency industry. When interest rates decrease, individuals are more likely to invest in assets with higher risks and returns like crypto.
Circle IPO
Crypto issuer Circle is preparing to go public in early 2024 via an IPO. This move is expected to support the adoption of cryptographic stablecoins like USD Coin (USDC). Circle’s previous attempt to go public was terminated due to lack of SEC approval, but this time, it’s anticipated to succeed.
Bitcoin Halving
The Bitcoin halving event, which occurs approximately every four years, will reduce the new coin supply by 50%. This scarcity is expected to enhance supply-demand dynamics and lead to a surge in BTC’s price. Previous halvings have been followed by major crypto bull runs.
FTX Case Resolution
The FTX case involving founder Sam Bankman-Fried is nearing resolution. Liquidation of assets to repay creditors has been approved, indicating progress towards restructuring the exchange. If a restart is approved by regulators with new leadership and compliance measures, it could restore trust and attract new retail funds to the industry.
The Road to the Next Crypto Bull Market
While there are potential negative factors that could impact the crypto market in 2024, such as the repayment of BTC by Mt.Gox and US government liquidation of seized Bitcoin, these events could also mark the emergence of an actual bull market. Widespread adoption of cryptocurrencies and innovations are expected. It’s crucial for investors to “Do Your Own Research” (DYOR) and be prepared for what could potentially be the most bullish market in crypto history.
Hot Take: Crypto Optimism on the Rise in 2024
As we head into 2024, there are several catalysts that point towards a promising year for cryptocurrencies. The potential approval of a Bitcoin spot ETF in the US, Ethereum’s Dencun upgrade, the end of US interest rate hikes, Circle’s IPO, the Bitcoin halving event, and the resolution of the FTX case are all factors that could contribute to a crypto bull market. While challenges and uncertainties remain, the overall sentiment is optimistic. It’s important to stay informed, conduct thorough research, and be prepared for potential market developments. Exciting times lie ahead in the crypto industry.
By
By
By
By