Recent months have witnessed a stabilization of the crypto market after the dust settled on the dramas of 2022 that counted the Terra stablecoin and the FTX exchange among its victims. That stabilization looks set to develop into something more in 2024.
Some of the most respected voices in the crypto world, including Georgia Weston from 101Blockchains, Crypto Banter, one of the top crypto commentators on X, and Kelly Ye, Head of Research at Decentral Park Capital, are all predicting a bull run in 2024. Here are some of the reasons they are feeling bullish about crypto in 2024.
Bitcoin ETFs Getting the Year Off to a Good Start
The much-anticipated announcement by the US Securities and Exchange Committee on the approval of spot Bitcoin ETFs sent crypto prices skywards before the new year was two weeks old.
It represents a key milestone for the crypto market in its ongoing journey toward acceptance as a component of mainstream financial markets. A number of asset management firms have already applied for SEC approval of spot Bitcoin ETFs. These are stock portfolios that allow investors to bet on multiple assets without having to actually buy them.
Halving Means Harvest for Bitcoin Investors
Bitcoin halves every four years, and history shows it is a positive event for investors. The next halving is scheduled for April 2024. Bitcoin halving is considered a positive economic model as it drives disinflationary pressure, meaning that provided demand continues to grow, then value will continue to increase.
In each of the past three halving events, value has increased in the months following the halving. However, there is also the anticipatory factor. That is to say, the price will start to climb in the weeks leading up to April 22 as investors buy and hold their Bitcoin reserves in anticipation of the rise that is expected to follow.
Mass Adoption of Stablecoins
Stablecoins are among the most important use cases for crypto, and Tether is achieving all-time highs in market cap. With UniPayment among the up-and-coming payment gateways that allow USDT payments, the rise of stablecoins has only just begun.
Volatility has always been the major barrier to widespread crypto adoption. Stablecoins provide protection against that, and Tether's survival through difficult times in 2022 when others fell has bolstered confidence in the stablecoin. At last, it means consumers can leverage the advantages of crypto, in terms of security, transparency, and so on, without worrying about it suddenly slumping in value against the US dollar.
An Election Year Bodes Well
Bitcoin halving is not the only thing that happens every four years. History shows that crypto markets become bullish in election years, and 2024 will see voters turning out in both the US and the UK. Despite some derisive comments during his previous term, the top Republican candidate could bring good news for crypto if he wins, according to LA Times political writer Jasper Goodman.
City AM has reported a similar change of opinion on the other side of the Atlantic. Labour Party leader Kier Starmer seems set upon a pro-crypto path, a significant shift from the posture adopted by his former Shadow Home Secretary, who famously dismissed crypto as "a gigantic Ponzi scheme."
Regardless of political affiliations, if things go the way the polls are predicting in the US and UK later this year, it will serve to support the bull run.
