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Cryptocurrency trends: The crypto landscape in 2024

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ARTICLE SUMMARY

Kate Leaman, Chief Market Analyst at AvaTrade, forecasts a pivotal year for cryptocurrencies. Expect explosive growth, government involvement, evolving regulations, and a balance between innovation and security. From Bitcoin's rally to the global market cap surge, 2024 promises exciting developments.

Kate Leaman, chief market analyst at AvaTrade, takes a look at the crypto landscape and gives her predictions for the cryptocurrency market in 2024.

Having studied financial broadcast journalism at the University of Westminster in London, Leaman has over 15 years of experience with financial media. As well as being a trader herself, Leaman is currently Chief Analyst for AvaTrade and has previously worked for Forex brokerage firms, UFXBank, Investing.com, and Sky News in senior marketing and media positions. Leaman has won the Sky News award for journalism and has hosted a slew of financial news shows.

Cryptocurrency trends

The crypto market is an ever-evolving landscape.

At the beginning of 2023, cryptocurrency performed strongly, bouncing back from its slump in 2022. With the year drawing to a close, 2024 is expected to be a pivotal year for cryptocurrencies such as Bitcoin, characterised by explosive growth, government involvement, evolving regulations, and a delicate balance between innovation and security. Views on the cryptocurrency markets outlook – and Bitcoin in particular – are optimistic for 2024, but it is important for traders to monitor the factors that may impact its growth.

The seismic shift in the crypto landscape

There are multiple reasons for this anticipated change in the crypto environment. Firstly, a remarkable market surge is on the horizon in 2024. Many experts are projecting a jaw-dropping tenfold increase in the global cryptocurrency market cap, vaulting past the $2.2 trillion mark. This soar could be fuelled by a massive wave of cryptocurrency adoption, with nearly one billion individuals joining the digital asset revolution.

Secondly, the crypto revolution in gaming is paving the way for the industry to become a crypto powerhouse. In-game digital assets seamlessly integrating into open blockchain networks is anticipated to become reality in the year to come. As a result, this integration will draw a flood of new cryptocurrency enthusiasts into the fold.

Thirdly, the regulatory landscape will continue to vary around the world. Some regions, like the UK and EU, will take a measured, proportional approach, while others, such as China, will maintain rigorous regulations. The United States will see evolving discussions and compliance adjustments under new legislation like the Infrastructure Bill.

Innovation continues to be a crucial aspect of any sector. This is no different in the crypto sphere, which faces the challenge of harmonising innovation and safeguarding consumers. Regulatory frameworks will grapple with issues like online fraud, money laundering, cybersecurity risks, and spam while fostering a culture of innovation.

Lastly, government action and policy overhaul will also play a crucial role in reshaping the market. As crypto ownership skyrockets, governments are gearing up for tighter control. 2024 may witness substantial shifts in cryptocurrency-related policies, potentially leading to a transformed industry landscape. These enthralling developments will shape the future of cryptocurrencies and their place in the global financial landscape.

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The value of Bitcoin

Bitcoin has proven once again to be the most valuable cryptocurrency this year. In fact, Bitcoin has rallied explosively recently, hitting a 20-month high in early December 2023. This Bull Run has led to a new high for other altcoins such as Solana and Chainlink as traders are enticed to invest in the cryptocurrency market.

However, there are several factors at play that may affect Bitcoin’s value in the new year. This includes market demand, which is set to have an influential role in 2024. If more people and institutions want Bitcoin, its price will increase. ETF listings will be a big factor to watch as this will directly impact market demand. Additionally, regulations from both governments and financial groups can affect the way people view Bitcoin and its worth.

Economic factors like the state of the world economy, inflation rates, and global events can easily sway people’s stances on Bitcoin. Macroeconomics can either hinder or accelerate Bitcoin’s potential growth. Should confidence wane in traditional financial systems, demand for alternative assets like Bitcoin could skyrocket, potentially driving its value to unprecedented levels.

Furthermore, the preference for Bitcoin over gold as an inflation hedge, highlighted by experts like Cathie Wood, reflects the increasing interest in cryptocurrency as a store of value. While the outlook for Bitcoin’s future is optimistic, investors are advised to approach cautiously, conduct thorough research, and carefully consider their risk tolerance in the dynamic cryptocurrency market.

2024 Bitcoin predictions

In light of the rate of adoption and the potential for ETF listings, views regarding the price of Bitcoin going into 2024 are favourable in some instances. Bullish predictions consist of analysts and enthusiasts believing that Bitcoin could experience significant growth in the coming years. They suggest that by 2024, Bitcoin’s price could reach new all-time highs, potentially exceeding $100,000 or even $200,000 per BTC.

These optimistic projections are often based on factors such as increasing institutional adoption, continued mainstream acceptance, and a growing perception of Bitcoin as digital gold and a hedge against inflation.

Nevertheless, other experts have taken a more conservative outlook on bitcoin, forecasting a more moderate price growth. These analysts are likely to estimate that Bitcoin could reach levels in the range of $50,000 to $80,000 by 2024. Ultimately, this perspective considers the potential for regulatory challenges, market corrections, and macroeconomic conditions that could temper Bitcoin’s ascent.

However, bearish traders might favour a less positive outlook. Critics of Bitcoin are likely to predict that its price will face headwinds and could even decline from its current levels by 2024. Moreover, bearish scenarios often highlight concerns about regulatory crackdowns, security vulnerabilities, or competition from other cryptocurrencies.

Ultimately, with varying factors such as a market influences, regulatory developments, and macroeconomic trends, cryptocurrencies are anticipated to deliver strong returns in 2024. With the success of Bitcoin in 2023, bullish perspectives expect this to continue into the new year. However, it is important for investors to remain up to date by conducting researching and assessing risk tolerance around the crypto market.

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