Crypto Holiday With Blofin: A Deep Dive Into 2024
Blofin, a crypto educational and investment firm, discussed the severity and impact of the recent bear market compared to previous downturns. They highlighted the presence of cash liquidity in the crypto market due to the widespread use of stablecoins and the entry of traditional institutions. Despite low volatility in 2023, investors were waiting for the right time to enter the market. Blofin also emphasized that the current stage should be called a “technical bull market” rather than a “real bull market” due to high leverage ratios and funding rates. They mentioned that real improvements in liquidity are yet to come.
Blofin explained that we are still not in the early stages of a full bull run. The current market status is better described as a “technical bull market.” They attributed the recent price action to improved expectations, such as the spot Bitcoin ETF narrative and expectations for interest rate cuts. Changes in the macro environment were identified as the most important influencing elements. Blofin mentioned that we will witness the end of the tightening cycle and the beginning of a new easing cycle in 2024.
When discussing sectors and coins that will likely benefit from a new bull run, Blofin highlighted exchanges (CEX and DEX) as the first beneficiaries. Infrastructure related to transactions and capital circulation, such as public chains and Layer-2 solutions, will also benefit. They mentioned Solana and Avalanche as some of the biggest beneficiaries in the last bull market. Additionally, they emphasized the development of BRC-20, a token issuance standard based on the BTC network, which allows for new narratives and use cases for Bitcoin.
Hot Take: The Potential of 2024
In 2024, we can expect to see gradual improvements in liquidity and a moderate but long-term bull market. The presence of cash liquidity, the development of Layer-2 solutions, and the exploration of BRC-20 applications will contribute to the growth of the crypto market. While we may not experience a bull market similar to 2021, new chances will emerge with the participation of new investors and the emergence of new narratives. The crypto market is poised for continued evolution and opportunities in the coming months.
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