Every year, one trend or other triggers either a bullish run or a bear market in the cryptocurrency market. Interestingly, anticipating the trends is quite energizing for enthusiasts.
Trends are very important because these help investors to know the direction the market is likely to take. Considering the volatility of Bitcoin and other cryptos, it is imperative to watch out for the trends.
The year 2024 has been an amazing year so far for the cryptocurrency market. From series of highs and lows to new asset classes gaining attention; the market has been awesome.
The Bitcoin Trends to Watch in 2024
It is quite impossible to accurately predict the next cycle in the crypto market. Yet, some factors can play out to give you a clue.
These are some of the trends that will shape how you trade and invest in Bitcoin and other cryptocurrencies in 2024:
1. Bitcoin’s Outlook Might not be Measurable
A couple of cryptocurrency analysts have at one point or another made forecasts on the future price of the coin. Some have “predicted” that Bitcoin will touch $100,000 by the end of 2024.
As much as Technical Analysis (T.A.) helps, it is not always correct. A piece of negative news in the market could send the price of Bitcoin spiraling down to the last support.
As a cryptocurrency enthusiast, ignore price predictions for Bitcoin (BTC) or any other cryptocurrency for that matter.
Disregarding these rumored price predictions will not only help you to be less expectant. It will also help you appreciate the fact that the volatility of cryptocurrencies can send the coins spiking or crashing at any time.
2. Crypto is Going 5G
The 5G network is not limited to mobile communications alone. It can also be used in the crypto market.
Cryptocurrency mining is generally known to consume lots of energy. This does not only consume much energy but also raises concerns about sustainability.
In light of this, we should expect the delegation of the 5G network specifically for cryptocurrency mining activities.
The 5G network can also be leveraged in other cryptocurrency applications, such as Decentralized Finance (DeFi) applications.
3. The Rise of NFTs
Creators or artists do not always get rewarded with what they are worth. This is the case with the traditional setting.
The trend of Non-Fungible Tokens (NFTs) allows for the tokenization of most things. From video game add-ons to physical artwork – lots of things can now be tokenized.
Already, the NFT ecosystem has been exploding in recent months. Marketplaces like CryptoPunks and CryptoKitties have been mapped out for the trading of NFTs.
The rise of Non-Fungible Tokens is not limited to the consciousness to earn from what you are good at. It also entails purchasing what other creatives published as a way of supporting them.
4. Regulations Will Never Stop
The cryptocurrency market has been in the eye of the storm since the first Bitcoin transactions were made.
Regulations have been in place, with some countries already restricting the citizenry from trading crypto. Check out CoinJournal for more information and cryptocurrency news.
More regulations are expected in the latter part of 2024. Already, China has made different efforts to regulate the crypto market. At the same time, plans are in place to reduce money laundering and tax evasion by regulating crypto in the United States. Now, capital growth or gains/profits made from cryptocurrency trading can be taxed in the U.S.
As much as these regulations may become much in the latter part of the year, they are healthy. The regulations prove that cryptocurrency trading and investment might not be banned. Rather, these regulations will help the government control certain aspects of the crypto market, while allowing investors to continue trading.
5. The Elusive Bitcoin ETF Could be Approved
Cryptocurrency investors have been yearning for a Bitcoin Exchange Trusted Fund (ETF). This is believed to be one of the major factors that will trigger a massive boom in the crypto market.
The general feeling is that the approval of the Bitcoin ETF by the United States Securities and Exchange Commission (SEC) will create a more convenient way for cryptocurrency investments.
Although the Bitcoin ETF has been severally rejected or delayed, hopes are now high that the approval is in the offing. The SEC Chairman, Gensler has hinted at the possibility of giving the Bitcoin ETF approval, considering that the same is obtainable in the bonds and equity markets.
6. Cryptocurrency Education will be on the Increase
It is a decade since the launch of digital currencies, following the successful launch of Bitcoin. Many people are yet to get a hang of cryptocurrency trading and investment.
The situation, is, however, about to change for the best in 2024, as cryptocurrency education will be readily available. More YouTube videos and online courses on cryptocurrency trading will be accessible by the end of the year.
Cryptocurrency enthusiasts can now leverage those to learn about Bitcoin, other cryptocurrencies, and how to trade them for profits.
7. A Change in Cost of Transaction
This is another interesting trend and we believe it will be multidirectional. Think of it like this; Ether exchanges will charge lesser fees while Bitcoin exchanges will experience an ascending cost.
The likelihood of these trends will be at the expense of activities that can tilt the interest in cryptocurrencies generally. In the end, procuring crypto will be cost effective compared to fiat currencies. This particular trend will further determine the speed of crypto adoption beyond exchanges.
Final Thoughts
These 7 trends in the Bitcoin market in 2024 will shape the future of cryptocurrency trading. The regulations, availability of educational materials, and volatility are things to watch out for.
We look forward to the period where crypto will develop towards global acceptance, utilization, and adoption. One thing we are sure of is that the positive results of this is totally inescapable.
Which other trend do you think will influence how Bitcoin and other cryptocurrencies are invested in 2024?
