Bitcoin and Crypto Market In 2024 – An Expert Guide

The cryptocurrency landscape has become the center of attraction in the world for offering a new approach to financial transactions. As 2024 has arrived and problems due to the crypto winter dominated 2023, it is important to think of the predictions for the crypto market in 2024. Most of the predictions about Bitcoin and crypto market for 2024 have painted a favorable impression for users and businesses. For example, market experts have predicted that the Bitcoin halving event would lead to a crypto bull run in 2024.

Apart from the bullish boost for prices of crypto assets other than Bitcoin, the crypto market is likely to grow with the forces of industry innovation and developments in market structure. On top of it, better access to data-driven insights for making investment decisions and increasing institutional adoption indicate promising trends for the year 2024. Let us explore more details about the predictions for the crypto market in 2024.

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Existing State of Cryptocurrency Market

The foremost aspect of understanding the existing state of the crypto market is market capitalization. You can notice how the Bitcoin market cap dominates the market, with more than 52% of transactions in the crypto market involving Bitcoin. The global cryptocurrency market reached a market capitalization of $1.43 trillion in November 2023. Market research has revealed that the crypto market experienced steady growth since October 2023 with major breakthroughs. For example, the anticipation regarding approval for crypto ETFs has offered hope for recovery from the crypto winter.

The anticipation regarding approval of crypto ETFs from the United States Security and Exchange Commission or SEC has boosted institutional adoption. How is the crypto market growth related to crypto ETFs? Different global investment firms have applied for crypto ETFs, especially the ones based on Ether and Bitcoin.

On top of it, several crypto projects have gained recognition for following new and innovative approaches to the market. Furthermore, introduction of user-centric elements has also helped in enhancing adoption rates. Increasing accessibility of cryptocurrencies for people without technical knowledge and NFT utility in the real world are also prominent highlights that dominated the crypto market in 2023.

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Regulatory Developments in the Crypto Market for 2024

The emphasis on regulations in the cryptocurrency landscape has been gaining momentum and evolving continuously. Most of the searches for ‘crypto market in 2024 predictions’ focus on asset prices. However, regulations serve as a major driver of change in the crypto market, and regulatory developments in 2024 will shape the industry.

The review of the state of crypto market in 2023 indicates that regulatory uncertainties did not affect the growth of big players such as Bitcoin and Ethereum. On the other hand, crypt enthusiasts have been monitoring the decisions of the Federal Reserve that could reduce the burden on crypto and high-risk assets. 

The US SEC is one of the focal points in the regulatory landscape for the crypto market. It has been actively involved in regulation of the crypto market and could play a vital role in opening the doors for mainstream adoption. In addition, the decision about approval for crypto ETFs has been influenced by the pressure from the US Congress. 

The discussions about Bitcoin market 2024 prediction draw references to the efforts of SEC and US regulators for classification of crypto assets. On top of it, macroeconomic factors have also been under the influence of macroeconomic factors. In 2024, the actions of the Federal Reserve related to interest rate policies could have a major impact on the crypto market.

The US Federal Reserve has increased the interest rate target on the fed funds particularly focused on fighting inflation. Continuously increasing interest rates could slow down economic growth, which might discourage investments in volatile assets, such as cryptocurrency assets. Therefore, navigation through the crypto market in 2024 would require a review of regulatory developments as well as macroeconomic factors.

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What is the Forecast for Bitcoin in 2024?

Bitcoin has always been a major force in the crypto market, being the first cryptocurrency that gained the world’s attention. As a matter of fact, questions like ‘Is crypto market going up?’ draw attention to the performance of blockchain technology. What has invited the attention of crypto experts towards Bitcoin now? The answer would point towards the Bitcoin halving.

Interestingly, all the previous Bitcoin halving events have served as catalysts for a bull run in the crypto market. The next Bitcoin halving event is predicted to happen in April 2024 and would lead to a reduction of mining rewards by half. Bitcoin halving is generally followed by an increase in prices of crypto assets, such as Ethereum and other cryptocurrencies. 

The previous bull market cycles for Bitcoin have been characterized by average annual gains ranging up to 213% in the second year. By the end of 2024, the Bitcoin market cap could achieve another high, supported by the long-term bullish sentiment for Bitcoin prices. Most important of all, the Bitcoin halving event would have a significant impact on the supply and market dynamics of cryptocurrencies. With the reduced rewards for mining new blocks, the scarcity of Bitcoin would increase, leading to price appreciation.

Another crucial highlight in the predictions for Bitcoin and crypto market for 2024 points at spot Bitcoin ETFs. Blackrock, or BLK originally filed an application for spot Bitcoin ETF with the SEC in June 2023. How can spot Bitcoin ETFs influence the crypto market in 2024? Retail investors could find more exposure to cryptocurrencies by leveraging ETFs, which offer the same features as cryptocurrencies. In simple words, ETF allows retail investors to obtain access to Bitcoin without actually holding the investment in a crypto wallet.

Market research by analysts has revealed the impending SEC approval for crypto ETFs could lead to a flow of massive volume of money into Bitcoin spot ETFs. The optimism has also helped in boosting the price of Bitcoin. Bloomberg has reported that the spot Bitcoin ETF market could grow to almost $100 billion. Some reports have also pointed out that Bitcoin ETF products could achieve exponential growth in three years.

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Improvement in Market Structure of the Crypto Market

The details about crypto market in 2024 predictions also focus the limelight on changes in the market structure. Crypto advisors would have to find alternative approaches for allocating digital assets from analysis to implementation. Institutional readiness for crypto adoption gained momentum in 2023. The crypto market could provide more exposure with the improvements in qualified custody alongside interactions between crypto exchanges and custodians.

The other factors among changes in the structure of the crypto market point to the attention of tax statements, usability, and reporting. Crypto custodians in the US are gradually refining compliant RIA platforms to meet the requirements of advisors. Predictions for the crypto market in 2024 also invite attention towards market innovation as asset managers compete with each other for exposure to crypto markets. Product adoption cycle in the crypto market would shift towards sophisticated, active exposure from passive exposure.

Which Factors Would Promote the Bullish Environment in Crypto Markets?

The liquidity of a crypto market is likely to grow due to increasing flow of investment from institutional investors. The Bitcoin market 2024 prediction primarily focuses on the Bitcoin halving event. However, investments would flow into the crypto space from investment firms through direct investments.

The next important factor that would promote the new Bull Run is the list of projects that can attract the attention of mainstream markets. Different commercial brands and service providers have been planning on entering the crypto space. These businesses are likely to perceive 2024 as the best time to make an impact. 

The growing demand for migration to web3 technology among web2-native projects will gain momentum in 2024. Why? The benefits of decentralized operations offer advantages of cost savings and better productivity. The predictions for crypto market growth in 2024 also focus on the possibilities for rising adoption of NFT with real-world utilities.

For example, NFTs could offer unique proof of ownership and entitle them to special advantages. Some of the notable examples of businesses that are likely to adopt blockchain and crypto in 2024 include social networks, fashion brands, games, and hospitality businesses. 

The overview of factors that could promote the next Bull Run in 2024 also focuses on crypto projects introducing new features. For example, new layer-2 technologies, such as optimistic rollups and zk-rollups, could improve scalability. Similarly, introduction of new NFT standards, such as ERC-4337, could make exceptional contributions to the crypto Bull Run in 2024.

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How Will Ethereum Perform in 2024?

The next important player in the cryptocurrency landscape is Ethereum. It would also emerge as a major influencer in the blockchain and web3 landscape. The discussions about ‘is crypto market going up’ in the past bullish cycles have also invited attention to the performance of Ethereum. A review of the historical performance of Ethereum during bull runs is a promising factor for driving the growth of crypto markets.

The predictions for growth of Ethereum in 2024 would also emphasize the developments in the Ethereum network. Some of the notable developments in the Ethereum network predicted for 2024 include the Ethereum Shanghai upgrade. It represented the major shift of Ethereum as it transitioned from Proof of Work to Proof of Stake consensus. 

Most important of all, crypto market in 2024 predictions related to Ethereum also emphasizes the position of Ethereum as the biggest competitor to Bitcoin. It offers a broad range of functionalities, including smart contracts, NFTs, and dApps. The features can attract collectors, developers, and users in the DeFi sector. The developments in Ethereum could also encourage institutional adoption, and increasing technological advancements would ensure user retention.

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What are the Prominent Trends that Would Dominate the Bull Run in 2024?

The different factors in favor of a crypto Bull Run in 2024 indicate promising trends for growth of crypto investments. Market experts have also pointed out that the growth in Bitcoin market cap will not be the only thing that influences the upcoming Bull Run. The rising interest in web3 has been one of the prominent highlights of promotion of growth in the crypto markets. Blockchain technology would also work in combination with other technologies such as AI, ML, and NLP to drive growth of web3. Here are some of the notable trends that would drive investor sentiment in the crypto market for 2024.

The metaverse would emerge as a new factor for promoting the growth of crypto markets. It can offer an interactive avenue for participation in crypto markets by leveraging NFTs. The active involvement of countries in metaverse research and development has also indicated the possibilities for mainstream popularity of cryptocurrencies in 2024. As metaverse gains the attention of institutional investors for advertisements, global tech giants are experimenting with new metaverse strategies.

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• Decentralized Finance 

The interest in predictions for Bitcoin and crypto market in 2024 also points to decentralized finance. DeFi has become a dominant trend in the crypto market and will dominate in 2024. DeFi applications offer easy access to financial services, such as staking, tokenization, lending and borrowing, crowdfunding, yield farming, and insurance. Therefore, DeFi applications are expected to continue their golden run in 2024 and promote the adoption of cryptocurrencies. As the DeFi market grows continuously, investor interest in DeFi will double up during the upcoming Bull Run.

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Bottom Line

The predictions for crypto markets in 2024 primarily revolve around the predicted crypto Bull Run. The Bitcoin halving event is scheduled for April 2024. It could boost the crypto market growth like the previous bullish cycles. The changes in the market structure and innovative developments in blockchain networks have boosted the growth of crypto markets.

In addition, you can also find many other favorable factors for growth of crypto markets. It is important to monitor the regulatory developments in the crypto landscape to determine their influence on investor sentiments. On top of it, the growing inclination towards web3 through NFTs, DeFi, and metaverse would also promote growth of cryptocurrencies. Learn more about the different ways in which crypto markets could go through an upside in 2024 now.

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!