Preparing for the 2024 Bull Run: Key Cryptocurrency Trends and Events

2023 has been an eventful year for cryptocurrencies, with highlights and not-so-sweet moments. As we enter 2024, it is difficult to say what the future holds for cryptocurrency, although experts are predicting potential growth based on certain trends and upcoming events. However, it is too early to say with certainty.

Here are some of the important trends and developments that could shape the future of digital money.

Main conclusions:

• The next Bitcoin halving, expected in April 2024, will reduce the number of Bitcoins available and likely increase their value, but its impact is unpredictable due to market sentiment and miner competition.
• Events, new regulations and technological changes can significantly impact the cryptocurrency market, changing how people think about investing and determining their financial gains or losses.
• To prepare for a potential market upturn, it is important to conduct thorough research, diversify your portfolio

Why are cryptocurrencies bullish for 2024?

The future of cryptocurrencies in 2024 looks promising for several key reasons. The first is the approval of a Bitcoin spot ETF. The US Securities and Exchange Commission (SEC) initially delayed a decision on Bitcoin spot ETF proposals from BlackRock and other major institutions until January 10, 2024. A Bitcoin spot ETF allows more investors to gain access to Bitcoin without the need for their own digital wallets, which is likely to increase the demand and value of Bitcoin.

The Bitcoin halving event expected this April could make it even more rare and valuable. This event occurs once every four years and cuts the creation of new Bitcoins in half, which can cause prices to rise.

In addition, there is growing interest in regulating cryptocurrencies. If legislation is passed by the US Congress and other regulators this year, it could bring more stability and trust to the cryptocurrency world, protect investors and spur innovation and acceptance.

What does the end of US interest rate hikes mean for cryptocurrencies?

The US Federal Reserve has paused interest rate hikes and is considering lowering interest rates in 2024. This move could impact the cryptocurrency market in several ways. First, it is likely to generate increased interest in risky assets such as cryptocurrencies and related stocks, as they offer higher returns than traditional investments. The hype around Bitcoin ETFs and the upcoming halving will likely accelerate this trend.

However, the move toward tokenizing real-world assets such as Treasuries may slow as these investments become less attractive due to lower interest rates. Instead, investors can turn to decentralized finance (DeFi) platforms that will allow them to earn higher returns by lending and borrowing using crypto assets.

Overall, lower interest rates could be good news for the cryptocurrency market. Cryptocurrencies can be seen as a way to protect against inflation and currency devaluation, especially since they have a limited supply and are not controlled by any central authority. Such sentiment makes them an attractive option in a low interest rate environment.

Key events and trends that could become turning points for cryptocurrencies

In addition to macroeconomic and industry factors, specific events and trends may impact the cryptocurrency market in 2024.

Bitcoin halving

Bitcoin halving is a process that occurs every four years and reduces the reward for mining new Bitcoin blocks by half. The next halving is expected to happen in April 2024. This event is very important because it can greatly affect the supply and demand of Bitcoin, which in turn affects its price.

In the past, Bitcoin's value has risen following halvings as the supply of new Bitcoins dwindles, making them more valuable. However, it is difficult to predict exactly what will happen this time as it depends on factors such as mining difficulty, hashrate, market sentiment and competition from other cryptocurrencies.

Circles IPO

Circle Internet Financial, LLC (USDC stablecoin issuer) is a cryptocurrency platform offering trading, lending, borrowing, staking and earning services. A Bloomberg report said the company is considering going public in 2024, meaning it will become publicly traded. The move is intended to encourage widespread use of the stablecoin cryptocurrency, which is more stable than other cryptocurrencies.

This widely anticipated IPO is expected to increase confidence in the world of cryptocurrencies and attract more investors and users to the platform. However, going public can also bring challenges such as regulatory scrutiny, market volatility, and competition from other platforms.

ETH Dencun

Modernization Dencun for Ethereum, this is a major update to the network, designed to make it faster, safer and more environmentally friendly. The update, slated to launch in early 2024, will introduce “proto-dunksharding,” which will lower the second-tier rollup fee and increase available storage space. If successful, Dencun will be able to make Ethereum more efficient and accessible to users, as well as reduce energy consumption.

However, the update faces challenges such as a complex engineering process, the need for effective coordination and communication between developers and the community, the possibility of encountering bugs and vulnerabilities during testing and deployment, and the unpredictability and fluctuations of the cryptocurrency market.

FTX case nears resolution

Since its collapse in 2022, popular cryptocurrency exchange FTX has been involved in several lawsuits. Individuals, other companies and government agencies have accused FTX of market manipulation, fraud, money laundering, unfair competition and violation of securities laws. The outcome of these cases could significantly impact the regulation and operation of digital currencies, as well as how people buy and sell them.

Other Upcoming Cryptocurrency Events

Crypto events are meetings where people interested in cryptocurrencies gather to share their experiences, knowledge and ideas about the industry. These events can take place online or offline, be formal or informal, and cover a variety of topics such as technology, business, education and entertainment.

Among the most notable events of 2024 are the world's largest and most influential crypto conference Consensus, the annual Ethereum developer conference Devcon and the main annual Bitcoin event of the year, Bitcoin 2024. Crypto events have a positive impact on the industry as they help founders, developers, investors, brands, politicians and many more to make connections, learn new things, work together and develop new ideas.

institutional acceptance

Institutional adoption is when large and established organizations such as companies, banks and governments use cryptocurrencies more. This trend is expected to continue into 2024. This development is favorable for cryptocurrencies, as these organizations will attract more funds into the crypto ecosystem, increasing liquidity and market stability.

Institutions' involvement in cryptocurrencies will also facilitate the growth of related infrastructure to support their activities. Custodial solutions, exchanges, and regulatory frameworks will continue to evolve, driving trust and adoption of cryptocurrencies.

Regulation of cryptocurrencies

Cryptocurrency regulations are the rules and standards that control the use of digital currencies such as Bitcoin, Ethereum, etc. These regulations cover taxation, licensing, reporting, and compliance with certain guidelines. Regulation of cryptocurrencies can either help grow the industry by providing clarity, security and incentives for users, or make it more difficult to use by creating barriers and penalties.

Examples of cryptocurrency regulations that could come in 2024 include the US government passing the so-called Crypto Tax Fairness Act to prevent people from paying capital gains tax on small cryptocurrency transactions. The European Union could also adopt the Markets in Crypto-Assets (MiCA) Regulation, creating a set of rules applicable to all countries in the union. However, on the other hand, the Chinese government's ban on any cryptocurrency activities within the country, including Mining, trade and storage, may remain in force.

NFT and Web3 Ordinaries Make a Big Comeback

Non-fungible tokens (NFTs) are digital assets that allow creators to claim ownership of their digital content, such as art, music, and even real estate. NFTs are changing the way people own and value digital assets and will become mainstream in the next few years.

Although the value of NFTs has declined since the 2021-2022 boom, there is encouraging news that they may make a comeback, especially on the Bitcoin network. Bitcoin is becoming a popular platform for NFTs and has seen a surge in daily transactions recently. Ordinaries (NFTs on the Bitcoin network) have seen a sharp increase in daily transactions, reaching a trading volume of $2023 million in December 36. With increasing competition and innovation in the NFT cryptocurrency market and Web3- the space is expecting exciting changes this year.

Bitcoin mining

Bitcoin mining is the process of creating new bitcoins by solving complex mathematical problems. This process also ensures the security of the Bitcoin network and verification of transactions. However, mining requires a lot of electricity and computing power, which could pose a problem for the environment and the future of cryptocurrencies.

To solve these problems, many miners are now using renewable energy sources such as wind, solar and water to generate electricity for their mining activities. Some miners also use a byproduct of oil and gas production, called flash gas, to mine Bitcoin, reducing waste and pollution in the process. This practice shows that Bitcoin mining can be environmentally friendly and contribute to a sustainable future for cryptocurrencies.

How to prepare for a potential surge

2024 is expected to be a big year for cryptocurrencies, with many experts predicting significant growth in their value. However, investing in cryptocurrencies can be risky, so it is important to be prepared and have a clear plan.

Here are a couple of tips to help you prepare.

Don't invest until you do your research: Don't believe what others say, check the facts and sources yourself. Follow the latest news and events in the cryptocurrency space. Remember to weigh the risks and rewards before making any investment decisions.

Diversify your investments: Don't invest all your money in one cryptocurrency, but spread your investments among different types such as Bitcoin, altcoins, DeFi, NFTs and others. Also, diversify your investments across different strategies such as trading, lending, borrowing, staking. This approach will help you reduce risk and increase your chances of profit.