After the FTX crypto exchange crashed in a big way at the end of 2022 and the legal and financial problems that followed, it was easy to think that crypto's time was up. However, blockchain technology and its supporters are not going away, even though officials and lawmakers are still worried about how safe and useful crypto assets are.
Even though Bitcoin's value hasn't reached its all-time high of over $69,000 in 2021, it more than doubled in value in 2023. In 2024, investors may be drawn to the riskier commodity because they think the Federal Reserve won't raise interest rates any further shortly. So, let's dive in to find out ifis crypto the future.
2024 Forecast For Crypto
As we move into 2024, the cryptocurrency market is riding a wave of optimism. This is because more institutions are adopting cryptocurrencies, and the economic picture is the best it has been in three years. Notably, big, good changes to regulations have already been in the news in the first few weeks of the year.
A major change in monetary policy from the US Federal Reserve makes the picture for the cryptocurrency market in 2024 even more positive. Likely, the US Federal Reserve's move not to raise interest rates will be good for all markets, including crypto.
The Federal Reserve may not be going to keep raising interest rates. Instead, there are signs that they might even lower them later in the year. This move, which is just quantitative easing, is big for the stock market and cryptocurrency markets.
In two ways, this change in strategy by the Federal Reserve is important. The first thing it does is make more money available in the business. Having more money in the system usually makes people spend and invest more. Second, when interest rate hikes stop, there are fewer good, low-risk investment choices, such as bonds.
When things are like this, buyers often move their money into riskier assets like stocks and cryptocurrencies in search of better returns. This change in how investors act could bring more money into the crypto market, which could make prices go up and increase market activity overall.
Cryptocurrency Predictions For 2024
Buy The Rumor, Sell The News
BTC went up by more than 160% in 2023 for many reasons. This includes optimistic feelings in important U.S. financial markets, the hope that the Securities and Exchange Commission (SEC) will approve a spot Bitcoin exchange-traded fund (ETF) in January, and the expectation of Bitcoin's "halving" event, which is set to happen in April 2024.
These last two factors have been especially important. For years, banks have tried to get regulators to let them offer a Bitcoin ETF but have been turned down because they say there is a lot of manipulation in the cryptocurrency space. There are a few approved Bitcoin ETFs that would make it easier to get into the top cryptocurrency through more common methods.
Also, Bitcoin keeps failing when it comes to being useful. El Salvador has tried using Bitcoin as a currency, but the people there haven't been interested. Only $126 million was sent to cryptocurrency wallets out of the more than $7 billion that was sent back to El Salvador from other countries in 2022.
The Ultra-Popular "Dog" Coins Will Continue To Underperform
The second prediction is that the very famous "dog" coins, like Dogecoin and Shiba Inu, will continue to do worse than the overall crypto market. Dogecoin and Shiba Inu tokens both went up in value by 35% and 36% in 2023. This is a better year-to-date return than the S&P 500, but it's still a long way below Bitcoin's gain of 160% or more.
What's wrong with Dogecoin and Shiba Inu is that they're just payment coins. One idea is that people could use any of the thousands of digital coins to buy things. The two coins with dogs on them don't offer anything unique that sets them apart from many other projects.
Usage data also shows that Dogecoin and Shiba Inu are not useful in the real world. A list of businesses online Cryptwerk says that about 2,500 businesses will accept DOGE tokens as payment, and about 900 businesses will accept SHIB coins as payment.
At the same time, there are about 333 million businesses in the world. Because meme coins tend to be very volatile, all companies have avoided Dogecoin and Shiba Inu except for an incredibly small number.
Cryptocurrency Market, Once Again, Fails To Decouple From Wall Street
People have been saying for years that cryptocurrencies will change the way people do business. It looked like investors could profit from cutting-edge innovations that aren't tied to the performance of the U.S. or global economy or the stock market. This was because more people were expected to use digital payments and smart contract protocols, which made it easier, more secure, and more mandatory to negotiate a contract.
Thirdly, the digital currencies will once more not be able to separate from the stock market by 2024. That is, how well or poorly the crypto market does will depend on how well or poorly the benchmark stocks do. Examples include the S&P 500.
Even though buyers would like to think that the cryptocurrency market is very different from Wall Street, a lot of the same things that affect Wall Street also affect digital currencies. For example, having access to cash is very important. Interest rates were near all-time lows in 2021, and the federal government was giving money to families and people who qualified. This caused most asset classes to go through the roof.
Crypto Space Will Experience Another Major Failure
The fourth and final Bitcoin prediction for 2024 is that there will be another failure that changes the game. Terra Classic (it used to be called "Terra") and TerraClassicUSD were the worst cryptocurrencies of 2022.
The market value of TerraClassicUSD was the fourth-largest stablecoin in May 2022. Terra Classic was the fourth-largest digital currency by market value. But things went wrong very quickly.
Most stablecoins use paper currencies to keep their value tied to the U.S. dollar. TerraClassicUSD, on the other hand, used an algorithm. There was an arbitrage chance when a lot of sellers in USTC broke this peg. This caused a chain reaction in Terra's stablecoin and Terra itself.
A short time after this epic collapse, we saw fraud happen in the FTX cryptocurrency market. Sam Bankman-Fried, FTX's former CEO, was found guilty on seven counts of theft and conspiracy less than a year after the company filed for bankruptcy. The former CEO of FTX could get up to 110 years in jail. The sentencing date is set for late March.
Research Analysts On The Future Of Crypto
George Calle
The total crypto market cap and key big caps (BTC, ETH, and SOL) will rise in 2024 when most people are willing to take risks. Crypto will do much better than general stock and tech sector indices.
Before the end of the first quarter, there will be a cash-settled BTC ETF. However, BTC will not be as popular for most of the year as buyers look for other investments with higher upside potential.
Proto-dank sharding will be added by the Dencun Upgrade, which will happen in late Q1 or early Q2 2024. As net profit margins rise, this will cause L2 tokens and their ecosystems to rise based on principles. There will also be a lot of speculation around systems that work with the larger modular blockchain stack because of this.
Steven Zheng
The battle between modularity and integrated methods will finally end in 2024. Along with flexible protocols like EigenLayer and Celestia, Ethereum will ship proto-dank sharding. This will start a wave of appchain rollups, like we've already seen with OP Stack.
He said there would be at least 20 "Ethereum-aligned" appchains worth at least $1B TVL. While Solana and Sei Network are making a comeback, and Monad is set to start soon, the industry will see how powerful parallel processing and execution can become. He thinks that two layer 1 blockchain that are mostly focused on parallelization will be in the top 10 market caps.
Eden Au
A "sell the news" event for prices is the approval of the spot BTC ETF. Still, BTC has hit a new high point. Due to rumors about spot ETFs, ETH does better than BTC. In the same way, COIN does better than BTC as Coinbase becomes the preferred storage provider for big-spot ETFs.
TIA does very well, taking advantage of community talks about (over-)extreme blockchain modularization and not being bothered by a "bullish unlock" event in Q4. Bids are made on tokens that have to do with non-EVM layer-2s (like Eclipse and Starknet) and autonomous computing.
Scaling-wise, the good implementation of EIP-4844 doesn't have a big effect on L2 adoption in the short term. Arbiter One and OP Mainnet are still by far the most popular L2. Application-specific L3s are opened up. However, some Cosmos sidechains get their traffic, which is made easier by Noble's use of native USDC.
Brandon Kae
The AI part of the crypto industry may be one of the best-performing parts of the year. Traditional models have problems like being too centralized and having trouble with regulations.
This is likely to make more people interested in open-source, "decentralized" AI and ML developments. Adding to the story, the fact that the crypto industry lets people invest and speculate on AI-related chances that aren't available in traditional markets will only fuel the fire.
- By the end of the year, at least one AI-related project will be worth more than $10 billion, and many more will be worth much more.
- The price of ETHBTC ends the year higher than it began, but "the flippening" does not happen.
- Telegram trading bots will see improvements to their user experience, and market players will continue to use them, even though they come with security risks.
- At least one NFT collection will have a market value higher than BAYC. They will also release their coin and become well-known among people who aren't crypto experts.
Abraham Eid
As tokenizing stocks becomes more important in traditional finance, more crypto-native infrastructure platforms will be bought by investment firms, banks, and other players in the financial market infrastructure.
This will help them build up their digital asset product portfolios faster. Also, more big investment companies will tokenize ETFs and money market funds on the blockchain, as Franklin Templeton did with their Benji Investments FOBXX fund.
- Web3 games will still have a hard time finding the right product for the right market, even though there is more positive talk about it now that generative AI is getting better and better at a very fast rate.
- DeFi will get most of its new product ideas from new platforms that tokenize real-world assets. These platforms will go beyond the company's current focus on private credit and US bonds.
- Particularly useful As time goes on, more dePIN networks for digital goods like computing, storage, and bandwidth will appear. These networks will be more competitive in hyper-local markets than some standard infrastructure providers.
- Tech areas, like zero-knowledge machine learning, that combine the benefits of AI and cryptography will get a lot of attention and startup capital investment, but they aren't quite ready for widespread use yet.
Carlos Guzman
The big idea for 2024 is that crypto and digital assets will be back in style. The hope that a Bitcoin ETF will be approved, which will finally happen in Q1, will make people feel bullish at the start of the year. There won't be a long-term rise in Bitcoin prices after the approval, though.
It will mostly be a "sell-the-news" event. Even though ETF gains are welcome, they won't be huge at first. The total value of the crypto market will continue to be affected by things like the economy and liquidity, and all eyes will be on what the U.S. Federal Reserve does.
The initial excitement around cryptocurrencies in the first quarter of 2019 is likely to die down as the economy as a whole slows down. This is because higher interest rates have a delayed effect on both family and business debt.
There's a chance that the U.S. will go into recession, and even if we avoid that, macroeconomic signs will be weak at the start of the year. On the other hand, weak macroeconomic indicators could finally push the U.S. Federal Reserve to suggest rate cuts, which would cause crypto to rise in the second half of the year.
The Future Of Crypto - Top Trends For 2024
In the fast-paced world of finance, the world of cryptocurrencies is a great example of how digital assets are always changing. As we approach the start of a new year, it is smart and timely to think about the path that cryptocurrency will take in 2024.
In the past year, there has been growth that has never been seen before, new technologies, clearer rules, and more acceptance of digital currencies by both small and large businesses.
Mass Adoption And Mainstream Recognition
A big change in how people thought about and used cryptocurrency happened in 2023. Big banks started to use digital assets, which set the stage for a huge increase in widespread use in 2024. More traditional buyers are likely to enter the market now that regulations are becoming clearer in many places.
As the negative views about cryptocurrencies fade, more people will likely use them in normal activities. Eventually, this will lead to them being fully integrated into the world's financial systems.
Central Bank Digital Currencies (CBDCs)
Cryptocurrencies for central banks (CBDCs) have been on the minds of central banks all over the world. Many countries will likely make big steps toward creating and using their CBDCs in 2024.
The way states see and use digital currencies will change drastically because of this move. Even though CBDCs aren't open like cryptocurrencies, the move toward digital currencies shows that digital assets are becoming more popular. Adopting CBDCs could also make financial deals easier, cut down on fraud, and make monetary policy more effective.
Interoperability And Cross-Chain Solutions
It will be important for blockchains to be able to work with each other in 2024, as the crypto space moves toward a more connected environment. Cross-chain solutions and interoperability standards will be very important for making it easy for people on different blockchain networks to talk to each other and move assets between them. Projects that try to connect different blockchains may be successful, which will encourage people to work together and come up with new ideas across the decentralized landscape.
Enhanced Security Measures
As the crypto business grows, so do cyber threats that are smarter and more dangerous. There will likely be a greater focus on security methods in the crypto space in 2024. To protect user assets, blockchain projects and companies will put money into a strong security infrastructure.
They will use advanced encryption methods and decentralized storage solutions. It is very important for users, both institutional and private, to keep trusting the industry's promise to improve security.
Evolving Regulatory Landscape
A global patchwork of regulations is one of the most important things about the regulatory scene in 2024. Different countries are regulating cryptocurrencies in different ways, which shows how each country's economy, society, and government are different. Some countries have accepted digital currencies as a real way to send and receive money, but others are still hesitant or even skeptical.
Regulations that are becoming clearer can lead to more usage. As governments around the world make it easier to how cryptocurrencies should be handled, investors and businesses feel more comfortable working with digital assets. Uncertainty about regulations is becoming an important factor for widespread adoption, which lets traditional banks play a bigger role in the crypto area.
Decentralized Finance (DeFi) Maturation
There have been a lot of new ideas in the field of decentralized finance (DeFi), which provides many financial services without the need for standard middlemen. We can expect the DeFi community to grow even more by 2024, tackling problems with user experience, security, scalability, and user experience.
A stronger and easier-to-use decentralized financial landscape will be possible when infrastructure gets better and different DeFi systems can talk to each other. Traditional banks may have to change or risk becoming outdated as DeFi becomes easier for more people to use.
NFTs Beyond Art
It was a busy year for non-fungible tokens (NFTs), mostly in the realms of digital art and souvenirs. The story about NFTs, on the other hand, will change in 2024. NFTs will likely be used in more areas, like real estate, games, and intellectual property.
As the technology gets better, NFTs will probably change the way that ownership and authenticity are checked in many different fields. This will open up new opportunities for both producers and investors.
Frequently Asked Questions
Will 2024 Be A Good Year For Crypto?
2024 may have ups and downs for crypto.
Will 2025 Be A Good Year For Crypto?
2025 could potentially see positive growth for crypto.
Which Crypto Can Give 1000x In 2024?
Predicting a 1000x return in 2024 is speculative; diverse research is essential.
Which Coin Will Reach $1 In 2024?
Several coins have the potential to reach $1 in 2024, including some newer projects and established ones with growth potential.
Conclusion
The question "Is crypto the future in 2024" refers to a world that has grown, matured, and become more integrated in ways that have never been seen before. To keep the trust and faith of its wide range of users, the industry must stay vigilant in dealing with problems like security, regulatory compliance, and environmental impact.
The financial environment will be more connected, efficient, and open to everyone by the year 2024. The future will be shaped largely by the work of developers, lawmakers, and other interested parties working together.