Disclosure: The views and opinions expressed herein are solely those of the author and do not represent the views and opinions of the crypto.news editorial.
The year 2024 is shaping up to be a historic period for the cryptocurrency market. Significant transformations are on the horizon for blockchain and digital currencies, which are expected to be instrumental in shaping their trajectory. A key trend for the next 12 months is the widespread acceptance of cryptocurrencies along with increased regulatory measures. Let's explore the additional changes anticipated within the sector.
bitcoin will set a new price record
bitcoin (btc) is about to potentially set new price benchmarks in 2024. Predictions suggest that bitcoin's value could skyrocket to $60,000 or even higher. Multiple factors contribute to this optimistic forecast. For example, the upcoming bitcoin halving event scheduled for next spring is traditionally associated with an increase in hoarding behaviors and a subsequent rise in the price of bitcoin. Currently, the price of bitcoin is around $43,900, occasionally surpassing the $44,000 mark.
Another bullish indicator for bitcoin is the possible approval of bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). According to Bloomberg analyst James Seyffarth, up to 12 bitcoin ETF applications could receive the green light as early as January 12.
These approvals could funnel billions of dollars into the cryptocurrency space. Galaxy Digital Experts bitcoin-etf/” target=”_blank” rel=”noopener”>estimate that a bitcoin ETF could attract approximately $14.4 billion in a year, potentially increasing the value of bitcoin by approximately 6.2%. Notable applicants eager to launch bitcoin ETFs include industry heavyweights such as Pando Asset, BlackRock, Fidelity, 21Shares & Ark Invest, Bitwise, VanEck, Wisdomtree, Invesco, Valkyrie and Global X.
Mining will move to a fully industrial scale
The impending bitcoin halving will usher in significant changes to the mining landscape. As the event approaches, the difficulty and cost of mining bitcoin is expected to increase dramatically, making it an unsustainable endeavor for retail miners. Consequently, bitcoin mining is expected to become an entirely industrial operation, with large corporations dominating the space.
It is worth noting that over the last month, there has been a substantial increase in the share prices of companies involved in bitcoin mining. For example, riot platforms (stocks/riot” target=”_blank” rel=”noopener”>RIOT) and Marathon Digital Holdings (stocks/mara” target=”_blank” rel=”noopener”>MARA) have seen their share price soar 180%. This rise in share prices is predominantly driven by large investment funds, suggesting that investors have carried out extensive profitability analyzes and have deemed it strategically sensible to acquire substantial stakes in these mining companies.
The main value is utility.
As mentioned above, the coming year will see widespread adoption, with cryptocurrencies gaining traction as a standard form of payment, particularly in some developing countries struggling with high inflation. Countries such as Venezuela, certain African nations, and possibly Argentina are expected to lead the way in using digital currencies for transactions. Established cryptocurrencies such as btc, Ether (eth), and Tether (USDT) are expected to be adopted for payments, while meme tokens and most altcoins will likely remain the province of speculative trading.
The year 2024 is also set to see the proliferation of cryptocurrency payment infrastructure, including cryptocurrency processing services, crypto ATMs, and cryptocurrency-linked credit cards. This integration will facilitate the seamless use of digital currencies in daily transactions around the world. E-commerce is expected to be at the forefront of this digital currency integration, as the adoption of bitcoin, ethereum or stablecoins for payments can reduce costs and simplify cross-border transactions, making them more accessible and convenient.
It wouldn't be surprising if, in the near future, major online marketplaces like Amazon and AliExpress start accepting cryptocurrencies like bitcoin or Ether as payment methods.
Regulation will be stricter, but that's good
It is imperative to address the evolving regulatory landscape of the cryptocurrency sector and the changes to come. In 2023, we experienced a number of notable controversies surrounding major cryptocurrency exchanges due to legal compliance failures. For example, Binance faced a $4 billion fine for regulatory violations. Additionally, the SEC has been examining the practices of Coinbase and other companies operating in the United States.
Looking ahead to 2024, with the US presidential election on the horizon, the Securities and Exchange Commission is expected to maximize its efforts in regulating the cryptocurrency market to mitigate illicit transactions. Additionally, several presidential hopefuls, including Donald Trump, have expressed support for digital assets. This suggests that the United States could be moving towards broader adoption of cryptocurrencies, albeit with strict regulatory oversight. We are already witnessing the beginnings of this trend. Europe would do the same, and EU countries are likely to follow the United States' example in implementing rigorous regulation of crypto assets.
However, this development should not be received with alarm. Clear and well-enforced regulations could attract significant investments from traditional stock and commodity markets into cryptocurrencies. Furthermore, a regulated environment is essential to curb money laundering and terrorist financing, thereby improving the legitimacy and stability of the cryptocurrency market.
NFTs and fan tokens will lose relevance
As bitcoin and major altcoins continue to consolidate their positions, the popularity of fan tokens and non-fungible tokens (NFTs) is predicted to decline, primarily due to their limited utility. For widespread adoption, cryptocurrencies must offer broad utility, something NFTs and fan tokens have struggled to demonstrate. Initially thriving on hype, these assets revealed their lack of intrinsic value during the prolonged crypto crisis, often referred to as the “crypto winter.” Although nft technology may find practical applications in areas that require rights management, such as art, patents, and real estate, the overwhelming enthusiasm for NFTs is unlikely to persist.
In summary, 2024 is set to be a transformative year for the cryptocurrency market and its integration into daily use. We are set to see the lines between fiat and digital currencies blurring, with bitcoin and ethereum becoming more integrated into our daily lives.
