Opinion: Anticipate the top six significant cryptocurrency events of 2024
Disclaimer: The opinions expressed in this article are solely those of the author and do not represent the views and opinions of crypto.news’ editorial team.
We’ve been enduring this bear market for quite some time now. It’s like enduring a long winter where you always need to be prepared with warm clothing. We keep asking ourselves, “When will the sun come out?” However, my perspective has changed. It’s not just about waiting for summer or the bull market to arrive. I’m already wearing a T-shirt and taking off my jacket. I believe there are clear indications that the bull market is already here.
Crypto has had an exciting year in 2023. The total market capitalization has surged by almost 93% from $794 billion on January 1, 2023, to $1.53 trillion as of December 5. As we approach the end of 2023, it’s time to look ahead and focus on the upcoming year. In this article, I have compiled the most important crypto events to look forward to in 2024.
In 2024, I anticipate six different market catalysts that could be of great interest to market participants and create new investment opportunities.
1. Approval of a Spot Bitcoin ETF in the US:
In October 2021, the US Securities and Exchange Commission (SEC) approved the nation’s first BTC-based exchange-traded fund. However, the SEC has not yet approved a spot ETF for Bitcoin in the United States. I believe this will change soon. There have been recent meetings between SEC officials and prominent crypto asset manager Grayscale, as well as with BlackRock and Nasdaq. Analysts believe that the probability of SEC Bitcoin ETF approval early next year is around 90%.
2. Ethereum’s Dencun Upgrade:
Major upgrades to Ethereum’s network are always significant events for the industry. The Dencun upgrade is expected to take place in the first quarter of 2024. This upgrade will introduce the long-awaited proto-danksharding, which aims to improve Ethereum’s scalability. It will utilize sharding to partition the network into smaller pieces called shards, enabling faster and cheaper transactions during periods of heavy usage. The Dencun upgrade will also bring other benefits such as optimized block space, reduced data storage costs, improved cross-chain communication, and enhanced security.
3. End of the US Interest Rate Hike:
Since early 2022, the federal funds rate in the United States has been increasing to combat inflation. However, with inflation falling and the market anticipating the first rate cut as early as May 2024, positive sentiments in the cryptocurrency industry are expected to strengthen. Lower interest rates make the bond market less attractive, leading individuals to invest in assets with higher risks and returns like crypto.
4. Circle’s IPO:
Circle, the issuer of the USD Coin (USDC) stablecoin, is preparing to go public through an IPO early next year. This move is expected to support the adoption of cryptographic stablecoins. Circle’s previous attempt to go public with a special-purpose acquisition company (SPAC) was terminated due to the SEC’s lack of approval. However, the upcoming IPO could be a significant milestone for the industry.
5. Bitcoin Halving:
Bitcoin halving is one of the most significant events for the crypto industry in 2024. It occurs roughly every four years and reduces the amount of new Bitcoin miners can receive for each block. This reduction in new coin supply makes Bitcoin more scarce and less inflationary. Historically, Bitcoin halvings have been followed by major bull runs.
6. Resolution of the FTX Case:
FTX’s founder, Sam Bankman-Fried, was found guilty of multi-billion dollar fraud. The resolution process includes the approval to liquidate assets to repay creditors. This resolution is expected to restore trust and regulatory clarity for investors, potentially attracting new retail funds to the industry. The SEC has indicated its willingness to consider FTX’s reboot under certain conditions.
While these catalysts point towards a potential bull market in 2024, there are also potential negative factors to consider. The repayment of BTC to creditors by the now-defunct Mt.Gox exchange and the US government’s plan to liquidate seized Bitcoin from the Silk Road case could introduce selling pressure and lead to declining crypto prices. Additionally, the global regulatory landscape for cryptocurrencies remains uncertain, which could result in unforeseen events.
In conclusion, it is important for individuals to do their own research (DYOR) and be prepared for what could potentially be the most bullish market in crypto history. The US approving a BTC spot ETF, the Dencun upgrade for Ethereum, and other important catalysts indicate the possibility of a Bitcoin Super Cycle in 2024. However, it is crucial to remain aware of potential challenges and uncertainties in the market.
