In January 2009, Satoshi Nakamoto, a low-key computer programmer with an unverified identity, shocked the world by mining the first cryptocurrency, Bitcoin. This was a significant development after failing several times to launch digital currencies, which would provide the world with alternatives to traditional currencies.
Fast forward to 2024 and the industry has grown enormously, although critics might argue that it has not yet reached its true potential. TO report published on CoinGecko, a leading cryptocurrency data analysis website, shows that the total value of the cryptocurrency market is $1.62 trillion. The report also demonstrated Bitcoin’s dominance after revealing a 50% market share.
Based on this data, next year is probably the best time to invest in cryptocurrencies. Investors should take advantage of new innovative technologies and clearer government regulations that will further boost the market.
Bitcoin emerging from the ashes
2022 was definitely a challenging year for Bitcoin, with the valuable digital currency establishing a trading range of $20,000 before sinking to a new low of $16,500 by the end of the year. That was a 76% decline from its all-time high of $69,000 recorded in November 2021.
Fortunately, in 2023 Bitcoin prices gradually increased and the leading cryptocurrency gained more than 50% by mid-June. Experts in the cryptocurrency industry have predicted a new bull run for Bitcoin, with several voices supporting it reaching the $100,000 mark in 2024. This year alone, BTC is up over 120%, giving another solid reason to invest in bitcoins.
Bitcoin aside, Ethereum (ETH) is another digital asset that is touted to do big things in 2024. This cryptocurrency has recently posted positive gains after recovering in 2023 to reach $2,400, with analysts predicting a rise to $3,500 in 2024 and $5,000 by 2025 if this bullish trend continues.
Like Bitcoin, in 2023 Ethereum recovered from a devastating 2022 despite failing to match an all-time high of $4,800 recorded in November 2021. According to FieryTrading, ETH has traded within the “bullish triangle” pattern for over a year and a half. The analyst also predicted that this coin will reach the $5,000 mark by the end of 2025.
Bitcoin Exchange Traded Fund (ETF) Approval Looms
There is more motivation if you plan to invest in BTC in 2024. A memo published in November 2023 revealed that the US Securities and Exchange Commission is in formal talks with asset managers ahead of the long-awaited decision on approval by from the regulator of a Bitcoin exchange. exchange-traded fund (ETF).
The financial regulator stated that it has already met with Grayscale to discuss the possibility of transforming the Grayscale Bitcoin Trust into an ETF. It should be noted that Grayscale successfully challenged the SEC’s earlier ruling to prohibit this action in court. The US Securities and Exchange Commission announced that it has no plans to challenge the loss against Grayscale, raising the possibility that we could see the Bitcoin ETF soon.
We anticipate that the approval of the Bitcoin ETF by the SEC will be a catalyst for other cryptocurrencies to follow suit. But we must remember that the American financial regulator can approve or reject all applications after postponing several decisions on Bitcoin funds. The good news is that SEC Chairman Gary Gensler, a strong critic of crypto funds, recently publicly stated that he would consider suggestions about a possible Bitcoin ETF.
Mass adoption of cryptocurrencies in 2024
Although nothing is certain, the growing adoption of cryptocurrency payments is expected to continue to increase in 2024. First of all, the blockchain revolution is already becoming a reality in several industries. And by 2024, blockchain technology will likely see more applications in sectors such as healthcare, gaming, and banking. Blockchain has proven to be a more reliable and transparent platform for handling private medical and financial data.
Another factor that will lead to mass adoption of cryptocurrencies is the improvement of user experience. Modern cryptocurrency platforms have become more intuitive and user-friendly by simplifying all processes to make them perfect for people with limited technological experience.
For example, a traditional way of playing casino games like Pragmatic Play’s sweet bonanza is by depositing funds through bank transfers and payment cards. But while these banking methods are secure, some players may find sharing their banking information online too much work and risky. In contrast, crypto payments are fast and anonymous. You just need to scan the QR code or paste a transaction link.
Lastly, as regulatory clarity around cryptocurrencies becomes clearer, so does their acceptability among the masses. Cryptocurrencies are becoming widely integrated into major financial systems, and countries such as Dominica, Antigua and Barbuda, Montserrat and Grenada have their own national digital currencies to help speed up transactions.
Here’s how increased regulatory clarity in 2024 will impact cryptocurrency adoption:
- Proper regulation will establish legitimacy and increase public and investor confidence.
- Regulation will help reduce the legal uncertainty that often surrounds the cryptocurrency market.
- Clear regulation will encourage innovation, leading to the birth of more digital assets.
- This will reduce criminal activities often associated with the cryptocurrency industry, where investors can lose a fortune.
Coming from a terrible time
The crypto industry is emerging from a terrible period that saw the value of major currencies fall and a ruthless government crackdown. 2022 saw the rapid fall of cryptocurrency exchange giant FXT, leaving a damaging domino effect that will take time to heal. After Sam Bankman-Fried was arrested and charged with criminal activities, investors left FXT en masse, leaving the exchange company bankrupt.
A few months later, US regulators arrested and charged Binance boss Changpeng Zhao with multiple violations, including violating the Commodity Exchange Act. He pleaded guilty in November 2023 and agreed to pay a fine of $4.3 billion, the largest fine imposed in corporate America. CZ also resigned as CEO of the company he founded.
These arrests preceded China’s announcement in September 2021 that all crypto transactions were illegal. The government said this measure will help maintain social stability and national security. As a result of this announcement, all Chinese merchants and foreign websites were banned from processing crypto payments.
But now that these events are behind us, there is unbridled optimism in the cryptocurrency and stock markets. The cryptocurrency market is likely to recover stronger in 2024, aided by the development of regulatory structures around the world.