If you’re a crypto trader, you’ll remember last year as one of the most turbulent times for blockchain-based assets. Numerous projects have been wiped out of the market, making the sector more attractive for investors who couldn’t decide what assets they should add to their portfolios.
The last two years have marked one of the most memorable bear markets in crypto history, with pessimism surrounding the industry for several months and investors refocusing on other asset classes. However, this year has witnessed a rebound in value for the most popular cryptocurrencies, and numerous investors are starting to buy Bitcoin with credit card because industry trends have pointed out that it could bring value to any portfolio.
The present market sentiment is one of belief and optimism because the industry is moving into a new stage, where a bull phase is anticipated. Hence, Bitcoin is expected to reach new all-time highs.
What you should know about crypto bull markets?
Before starting to delve into the idea that 2024 might be a bullish year for Bitcoin and other cryptocurrencies, it’s crucial to understand what the phenomenon implies. Bull stages are usually characterized by increasing asset prices and investor confidence. Therefore, expect traders to feel more optimistic about the market and its potential.
The signs that a bull market is getting closer are evident, with the demand for digital currencies like Bitcoin and Ethereum being higher than ever. Altcoins’ prices have also started to grow as investors are adding major cryptocurrencies to their portfolios and smaller projects that are more accessible.
Bitcoin halving event and ETFs trigger great expectations
Bitcoin will go through a significant change this spring, which could trigger a skyrocketing increase in price. It experiences a shift in infrastructure every 4 years, and 2024 will mark the year of a new halving.
New coins are created through a process called mining, which implies miners using high-tech computers to solve complex math problems in exchange for a reward. Halving events cut Bitcoin rewards in half, so miners have to work double as much to get some coins. However, everyone expects this change in the algorithm, and miners aren’t worried their profit will drop because halvings have always brought a price spike by around 200%.
Recently, another major event happened in the Bitcoin network: the Bitcoin spot ETF was approved. The public has waited for these crypto-centric exchange-traded funds for a long time because they enable them to get a stake in Bitcoin without holding the asset in their portfolios. Crypto experts believe that the approval of ETF applications will bring the cryptocurrency into mainstream and people will feel more confident to purchase it.
The halving event, together with the ETF approval have brought more optimism around Bitcoin and could trigger a price increase. Bitcoin could reach a new high in 2024 because more institutional investors could access it, and therefore, the asset could strengthen its position as a store of value. Further regulation and the halving event from the spring could also deliver positive results for investors.
The world is facing some economic turbulence
Institutional investors pay attention to the global macroeconomic landscape when they establish strategies. Over the last few months, the economic landscape has witnessed monetary unrest and financial insecurity. Let’s not forget that the world has just dealt with a pandemic and is still facing international wars, increasing interest rates, and several supply chain disruptions. All these factors have facilitated the rise in popularity of alternative investments – investors worldwide have started to search for solutions to secure their funds and make a profit. Digital assets like Bitcoin have emerged as worthy investments for the first time in their history.
Recent reports show that Bitcoin has gained in value over the last year because investors have characterized it more as a digital store of value. Additionally, institutional investors have also started to experiment with crypto assets to provide clients with a wider array of services. However, it’s crucial to mention that even if Bitcoin and other cryptocurrencies have experienced a wider adoption among institutional investors, the market is still in its early stages, and it still has a long road to reach its full potential.
Cryptocurrencies could be subjected to favorable legislation
Besides the approval of ETFs, the European Union intends to implement the Markets in Crypto-Assets legislation, which will definitely have a huge impact on crypto assets’ performance and the way institutional investors approach them. When the European Union has a comprehensive regulatory framework for cryptocurrencies like Bitcoin, investors benefit from legal certainty and clarity, making them more confident using cryptocurrencies. This could lead to a wave of mainstream adoption and increased trust in the sector. When the regulatory environment is more favorable towards assets like Bitcoin, institutional investors will follow suit and be more willing to integrate them besides other digital assets in their portfolios.
2024 will be a pivotal year for digital currencies
Suppose all the above predictions come to reality. In that case, participation in the crypto market will be higher than ever, which could cause an increase in the overall adoption of cryptocurrencies and higher value for projects like Bitcoin. Institutional investors bring substantial capital, expertise, credibility, and other benefits to the crypto sectors, leading to higher stability and liquidity. The more institutions use cryptocurrencies like Bitcoin, the higher the sector’s credibility gets.
Bitcoin and cryptocurrencies could become the new digital devices. Smartphones are around 30 years old and have become pretty popular among people. The world is saturated with digital devices as they facilitate completing several tasks, from sending emails and faxes to keeping in touch with people from around the globe.
2024 has many dominoes in play, so we expect it to hold its promise that Bitcoin will enter a bullish run. The halving event, new regulatory developments, and increased adoption of digital assets could only fasten the mainstream acceptance of the asset. However, not only will Bitcoin experience a surge in price, but the entire sector could witness growth.
