The market is optimistic about the cryptocurrency market in 2024 as the current year ends. Although the long-drawn-out bear market which began in 2021 seemed to drag into 2023, many cryptocurrencies are now recording gains and have returned exciting year-to-date (YTD) profits to investors and holders.
At the time of writing, Bitcoin, the world’s largest cryptocurrency by market cap, is trading at $36,245 after losing 3% over the last 24 hours. However, the world’s king coin seems to be on a rally and has gained more than 22% in 1 month and nearly 39% in 3 months. Bitcoin has also jumped almost 119% in YTD gains. Also, Ether (ETH) has had a good year, although a less successful one than Bitcoin. Holders and investors have seen more than 22% returned in the past month, and over 64% in YTD gains.
In 2023, crypto saw increased use across different sectors, with a significant rise recorded in the online casino industry. There are now many online platforms, including traditional, crypto, and non gamstop casinos that allow users to deposit supported cryptocurrencies to place bets and enjoy their favorite games. In addition to gaming, the use of cryptocurrencies for their function as a store of value also grew, especially in countries with weakening economies. For instance, the volume of crypto transactions rose to $56.7 billion in Nigeria between July 2022 and June 2023. In Uganda, crypto use jumped by 245% to $1.6 billion in the same period.
Despite regulatory crackdowns from government authorities like the Securities and Exchange Commission (SEC) in the United States, enthusiasts seem optimistic about crypto for more than a few reasons.
Factors Likely to Boost the Bitcoin Market in 2024
The biggest milestone in the crypto industry for next year is the potential approval and launch of a spot Bitcoin exchange-traded fund (ETF). Several applicants have submitted proposals to the US SEC for BTC ETFs in the spot market. However, the SEC has yet to approve any, rejecting all applications since the Winklevoss Brothers’ Gemini Exchange filed for the first one in 2013. The SEC repeatedly stated that the applications do not include adequate measures against fraud and market manipulation. The applicants have now addressed the SEC’s concerns by amending their proposals to include surveillance-sharing agreements (SSA).
Currently, the market is confident that a spot BTC ETF approval is only a matter of time. Giant asset manager BlackRock believes that approval will happen by January 2024, with similar sentiments shared by Galaxy Digital’s Mike Novogratz and Bloomberg ETF analysts Eric Balchunas and James Seyffart.
Another anticipated event in the 2024 Bitcoin market is the halving expected in April. The next halving, which happens every 210,000 blocks (or every 4 years), will see block rewards fall to 3.125 BTC from 6.25 BTC. The halving event is significant because it functions as a deflationary network measure since it reduces the amount of Bitcoin going into circulation. Although it may not happen immediately, the historical market trend suggests that the halving will eventually pump Bitcoin’s price.
Factors Likely to Boost the Altcoin Market in 2024
The altcoin market has not been left out this year, with some assets bringing even better returns than Bitcoin. For instance, Solana (SOL) has jumped more than 500% YTD, outperforming BTC and ETH. Coins like Cardano (ADA), Avalanche (AVAX), and Chainlink (LINK) have also seen impressive gains this year, earning 52%, 104%, and 149%, respectively.
XRP is another success story, considering its victory against the SEC in July. A federal court effectively awarded Ripple the case when it ruled that XRP does not qualify as a security. XRP jumped by more than 70% within 24 hours of the ruling.
Not long after Ripple’s victory, the company secured a few exciting partnerships that strongly affected XRP. For instance, the Georgia Central Bank announced Ripple as its official tech partner as it develops the Digital Lari, a Central Bank Digital Currency (CBDC). Ripple also recently revealed that the Dubai Financial Services Authority (DFSA) has approved the use of XRP within the Dubai International Financial Centre (DIFC), in addition to other assets like Bitcoin (BTC), Ether (ETH), and Litecoin (LTC).
For Ethereum, historical patterns show a 613% average annual gain in the second year of a crypto bull market between 2016 and 2020. This suggests the market could see a new all-time high (ATH) for the world’s second-largest coin sometime in 2024. There’s also Polygon, which crossed 3 billion total transactions in September, nearly 1 billion more than Ethereum.
How Will The Crypto Market Look Next Year?
Most of the market is optimistic about next year because of all the milestones crypto achieved this year. In addition, the events expected next year, especially the halving and the spot BTC ETF approval, suggest a possible bull market for several assets.
The decentralized finance (DeFi) sector is also predicted to benefit from new decentralized apps (dApps), especially with increased melting points between the traditional and crypto sectors. In any case, the outlook for cryptocurrencies is a lot more bullish than bearish, spurring general enthusiasm in the overall crypto community.