Cryptocurrencies, 2024 a “year of crucial turning points”: the analysis

Elizabeth Smith

2024 is a decisive year for Bitcoin and cryptocurrencies: CheckSig’s Outlook 2024 outlines the scenario, the prospective analysis that offers a clear overview of the challenges and opportunities awaiting the cryptocurrency sector.

From which it emerges that “the horizon of 2024 appears to be characterized by a bullish trend in the cryptocurrency market. The market outlook is further fueled by the prediction that interest rates will lower in 2024, creating a favorable climate for investments in digital assets.”

2024 year of crucial turning points for cryptocurrencies

2024 therefore promises to be a decisive period for Bitcoin and crypto-assets. The prospect of new highs for Bitcoin, exceeding $69,000 in November 2021, presents itself as a tangible possibility, despite the anticipated volatility and possible retracements. Some analysts even make the bold prediction of exceeding $100,000.

The Bitcoin halving, scheduled for May 2024, also fuels positive expectations, strengthening the consolidated bullish trend linked to this phenomenon.

However, the main catalyst for this trend is the wait for the approval now considered imminent of Bitcoin ETFs, requested from the SEC by important players such as BlackRock and Fidelity. The pressing request from the main global asset managers highlights the growing presence of capital looking for simple investment tools in this asset class.

Regulatory clarity is a driver of growth

The growing adoption in Europe signals an ever-increasing acceptance of cryptocurrencies as a legitimate asset class, both by institutional and private investors.

In this context, the market particularly rewards cleaning operations in the sector. Regulatory interventions in the United States have addressed and condemned fraudulent actors such as Sam Bankman-Fried’s FTX and Changpeng Zhao’s Binance.

This helps to instill confidence in sustainable growth, free from scandals and fraud. 2024 also marks the entry into force of MiCA (Markets in Crypto Assets), providing a clear European regulatory framework.

Potential risks in the crypto market in 2024

Not everything is as glamorous as Bitcoin. In every bullish cycle – the analysis continues – new digital assets of dubious reliability emerge. For this reason, caution is advised in enthusiasm for ephemeral news.

Ether can, however, consolidate its complementary role to Bitcoin, while stablecoins will increase their usefulness.

Tether, the leader among stablecoins, bears the responsibility of proving itself reliable. Despite progress in terms of transparency in recent months, there are concerns about its solvency. To date, the main concerns in the market are the risks of financial gaps.

In parallel, it is imperative to closely monitor regulatory developments around Binance. The company was convicted and fined for shortcomings in the anti-money laundering sector, highlighting a loss of market share; the important thing is that unexpected shortcomings do not emerge in this context too.

Finally, it is recommended to pay attention to HTX Global. The founder, Justin Sun, has credibility issues and the exchange holds a significant percentage of its reserves denominated in the cryptocurrency it issues.

Read also: Can we trust stablecoins? 6 risks to consider before investing

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