After two rather difficult years in 2022 and 2023, Bitcoin appears set to enjoy considerable growth in 2024. Most investors and analysts are convinced that BTC will experience a bull run very soon, which is why most have started heading to binance.com/en to buy more assets before the price becomes too high. Hodling is also more popular than ever, and not only because the marketplace is still relatively volatile. The fact that the prices will continue to grow causes many to want to boost their holdings by ensuring the revenue remains in their portfolios.
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2024 levels
Bitcoin enjoyed its all-time high back in 2021 when it was steadily approaching the $70,000 level. However, this never came to pass, and instead, the price dropped by almost 70% in one of the most noteworthy and sudden shifts in the history of BTC. While there are many predictions regarding the imminent bull run of next year, most of them seem to indicate investors expect a new all-time high to arrive.
Currently, the $80K level seems to be the most likely. There are many factors that weigh into these estimates, including the possibility of an ETF approval, as well as the continued rise of the Ordinals. Stablecoins are also set to grow and expand to previously unseen levels as the cryptocurrency market becomes more consolidated. According to the predictions, stablecoins will be used to settle far more volume than the current Visa payments.
During the third quarter of 2023, Visa stood at roughly $9 trillion in processed payments, while stablecoins were at $5 trillion. While it will initially seem that the digital asset is still far behind the traditional method, it’s important to remember that stablecoins skyrocketed from a capitalization level that was near zero to $137 billion seemingly overnight. Taking this growth trend into account, it seems evident that the utility and trading volume will grow even more in 2024.
Higher demand
Cryptocurrencies have had a rather tricky time over the past couple of years. Scandals have followed the marketplace very closely, with several high-profile exchanges or crypto-friendly banks collapsing, causing many investors to lose capital. These events plunged the crypto environment into chaos and led many to doubt the safety of trading digital assets. It has also caused regulators to believe it is necessary to implement stronger regulations specific to the crypto environment.
However, it seems that the demand for crypto remains as strong as ever and will continue to become more elevated. By the end of 2024, the total stablecoin market capitalization will reach $200 billion, according to the latest data. All decentralized exchanges are expected to hit new spot trading volume levels. The sites that are KYC-compliant will most likely surpass the non-compliant ones.
$2.4 billion
Many analysts and researchers are convinced that a Bitcoin spot exchange-traded fund will be approved during the first quarter of 2024. Most of the estimates are also based on the possibility that the United States economy will also enter a period of recession, which will help create more reliance on digital assets. Traditionally, when fiat currencies aren’t doing well and the economy is navigating a difficult time, crypto coins tend to do better because people gravitate towards something that can provide them with more security.
Bitcoin has traditionally been used as a store of value and a means to retain revenue for a long time. Many people living in countries with very steep inflation rates prefer investing in Bitcoin because they know that it won’t become devalued so quickly. According to these estimations, over $2.4 billion might flow into ETFs during the first quarter of 2024 in order to support the price of Bitcoin. In this context, the halving to arrive in April will have a diminished role and won’t disrupt the marketplace too much.
Bitcoin dominance
There has been a lot of talk regarding the possibility of Ethereum surpassing Bitcoin soon. The two currencies have long been pitted against each other. However, they’re not the only ones involved in a so-called battle. Many investors are talking about the so-called “Ethereum killers” coins and platforms set to replace Ethereum because they have also developed the same decentralized functionality and features. Solana is the most noteworthy example in this area, but there are other coins that are already dubbed “Solana killers” as well.
So far, Ethereum has never managed to surpass Bitcoin and hasn’t even come close to achieving this goal. Most investors and analysts are convinced that Bitcoin will reign supreme in 2024, leaving all the altcoins behind, including Ethereum. This is similar to all the past cycles and means that a lot of value will also pour into smaller tokens following the halving. While Ethereum will grow as well, it won’t replace crypto.
However, it is very probable that it will manage to outperform all the major tech stocks. At the moment, ETH is the industry standard for smart contracts, and its fellow rival blockchains tend to have much smaller market capitalization.
Decentralization and AI
Artificial intelligence is a very hot topic at the moment, and it seems that everybody is talking about it and its potential. There’s a lot to be said about its potential to make processes more efficient and easier to manage, but there’s also a risk that it will be used for more nefarious purposes, including spreading fake news. According to some crypto researchers, the blockchain and the use of cyber currency could help remove artificial intelligence and all its functionalities from the singlehanded grasp of a few tech giants and move it into the Web3 community.
The decentralization would serve as a helpful counterbalance to AI models, which currently require a massive amount of resources to survive. The crypto, blockchain-based networks let everyone contribute and manage, creating permissionless markets. The predominant technology in 2024 seems to be a mix of the two.
To sum up, the crypto market is set to achieve great things in 2024. Most investors are looking forward to seeing how things will unfold and how it will affect their portfolios.
