The past two years have been harsh on cryptocurrencies, given the downturn in their price trajectories caused by systemic failures in the financial system. However, the numerous struggles of Bitcoin and some of its competitors to stay afloat have taught a lesson in resilience. The leading digital coin began the year costing between $16,000 and $17,000 before jumping to $25,000 in February. Investors enjoyed a period of improved prices and better prospects until the asset’s value fell below $20,000, only to recuperate and trade at over $26,000 by the end of March.
Fast forward, and the token is now hovering under $30.000, having already surpassed this level. It is nothing out of the ordinary for the asset to recoup its value, but more like something that perspicacious investors were nevertheless awaiting, as history has told us that there’s always a bull run succeeding the bear period.
Some experts are of the opinion that another cryptocurrency bull run will unfold in 2024. On the contrary, other well-versed individuals in the cryptocurrency and financial ecosystem are somewhat reticent and postpone this event to a later date.
For the time being, several trends and events support the predictions of some experts that investors will enjoy a bull market in the coming year, and that Bitcoin will play an instrumental role in its unfolding.
SEC’s acceptance of several spot Bitcoin ETFs might trigger a bull run
Bitcoin ETFs are a hot topic these days, and everyone’s awaiting the verdict of financial regulators on their legitimacy. It is largely believed that if the SEC approves a number of spot Bitcoin ETFs, consequently, the bolstered exposure and access of the average individual to cryptocurrency may eventually increase the prospects of triggering a new bull run in 2024.
Europe is one step ahead of the U.S. in the ETF game, having already accepted the first project in August. The product will be enlisted on Euronext Amsterdam – the biggest European stock exchange and one of the most prominent worldwide, connecting different market players to one stage. The launch comes two years after the project was approved by the Guernsey Financial Services Commission (GFSC).
Bitcoin EFTs confront delays in the U.S., speculating that the failures of previous banks and crypto exchanges hinder the decision-making process. It has also denied similar applications in the past, stating there’s a long way to go until cryptocurrency trading platforms gain enough control over manipulation and fraud practices. The agency hasn’t warmed up to these products despite the numerous applications registered in recent years. Past events are expected to push a firm decision into fall, if not into the following year. On the other hand, more spot Bitcoin ETFs are anticipated in Europe since the first step was taken.
Some cryptocurrency experts believe that the emergence of Bitcoin ETFs will boost the demand for the token to the point where tremendous amounts of money will be poured into it. For now, it’s a massive milestone in the cryptocurrency’s history and a move that may foster mainstream adoption and education on a large scale, paving the way for cryptocurrencies to become more critical players in the financial system.
Cryptocurrencies are expected to witness more institutional acceptance
Suppose the history of the crypto market can be a reliable indicator in determining the success of an asset. In that case, one can conclude that the more positive the institutions’ approaches towards Bitcoin and cryptocurrencies generally, the better their performance. After the distress of last year, it could be assumed that cryptocurrencies have lost much of their shine, at least regarding institutional investors. But recent research and data demonstrate the opposite.
According to recent data generated by Glassnode, a global cryptocurrency data analytics, the number of Bitcoin whales rose to a 1-month high in July of this year, meaning that cryptocurrency platforms and exchanges registered increased activity from the most prominent investors. This is an indisputable sign that more institutional players are warming up to Bitcoin, and with it, to other cryptocurrencies. Another trend among large investors is self-custody as the main method of storing and managing digital holdings. Similar data indicates that well-known investors are moving away from custodial wallets, where their private keys are held by third parties, and toward non-custodial wallets, where they hold the private key themselves.
Bitcoin’s halving – the ace up the sleeve
If the scenarios above are bound to fail to meet expectations, there’s one more event that crypto enthusiasts look forward to, expecting it to trigger the well-awaited bull run. Historically, Bitcoin has been associated with the inception of bullish momentum as price upturns were registered in the several weeks preceding the Bitcoin halvings. In 2012, for example, the reigning coin gradually climbed in value over the year after the halving, reaching 8,000%. Moving on, it saw a growth of approximately 1,000% associated with the 2016 halving. 2021 witnessed Bitcoin’s ATH of over $68 in the light of the last bull run and rewarded future-oriented investors who had previously bought the coin at humble prices.
As such, the cryptocurrency community and analysts expect another wave in anticipation of the following reward-reducing event. Bitcoin’s halving is encoded in its white paper – the original protocol and plan created by its supposed developer, Satoshi Nakamoto. It’s a feature aimed at maintaining the token’s scarcity, whose maximum supply is limited to 21 million. Bitcoin miners will see their compensation in the form of bitcoins cut in half, likely pushing many miners out of business. Letting aside the fact that many miners will have to resort to other ventures to continue generating income, the event will prove favorable for how the world will perceive Bitcoin. The less mining involved in generating Bitcoin, the less energy is used and emissions are created. This change will remove some of the stigma built into the crypto sector.
Whether 2024 will bless investors with a bull run remains to be seen and largely depends on various internal and external factors. To be better prepared for whatever crypto is cooking in the oven, keep up-to-date with news and trends and don’t forget to use only reliable sources of information.
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