The cryptocurrency market is one which fluctuates wildly. Predictions are varied as it is such an influential market, so no one can really accurately predict what will happen in the coming months. However, as we near the end of 2023, there are many predictions coming from those within the market as to what trends traders can expect to see, as well as pricing and valuations.
Interest in cryptocurrency is really picking up the pace and, this year, there has been increased interest and involvement with trading and investing in the market. With that in mind, let’s take at 3 of the biggest predictions for the crypto market traders can expect in 2024.
Is Crypto Heading For A Crash or Climb?
There are many different opinions as to whether the crypto market will climb or crash in 2024. Of course, no one knows for sure, but based on past trends, there are different expectations as to what could happen. The next Bitcoin halving is being expected by the industry to happen in April 2024. This event, which typically happens every four years, not only affects the market value of Bitcoin but also affects the wider circle and dynamics of the crypto market.
This halving matters because Bitcoin is pre-coded to halve every 210,000 blocks – which roughly works out as to every 4 years. It reduces the reward that Bitcoin miners receive in exchange for validating blockchain transactions, so this controls the issuance of new Bitcoins and helps to maintain its scarcity.
In 2009, Bitcoin miners received 50 BTC for each block. In 2012, when the first halving occurred, this dropped to 25 BTC. 2016 saw a drop to 12.5 BTC and then in 2020 it dropped to 6.25 BTC. This halving heavily constrains the rates at which new Bitcoins are released and therefore affects the wider demand within the cryptocurrency market. It has a great influence on whether or not the market will climb, or crash and this halving is something which is being heavily monitored.
Regulators Are Continuing To Monitor Cryptocurrency
Cryptocurrency regulation is a continuing hot topic, with many experts and investment fraud attorneys keen for some form of regulation to be put in place to protect traders. It is expected that, in 2024, there will likely be more clarification on the grey zone in terms of legality when it comes to certain cryptocurrencies, not including Ethereum and Bitcoin.
Stablecoins are another area of interest for regulators, where the token value is tied to the price and cost of assets, such as the dollar. There are many types of trading scams associated with the unregulated market of cryptocurrency, costing traders of all experience thousands of dollars in losses, which is why many are calling for some security and regulation matters to be integrated within the market.
Ethereum Will Outperform Bitcoin
Ethereum has outperformed Bitcoin since July 2022 and this trend is set to continue well into 2024. Crypto analysts believe that Ethereum will continue to do well due to the ongoing surge in NFT sales and the volume of these sales, as most NFT tokens run on the Ethereum blockchain.