"Six Major Trends and Uncertainties in the Crypto Industry in 2024" In the next year of 2024, the cryptocurrency market will face countless major innovations and potential opportunities. Let me tell you a few big things that may change our lives:
1) Listing of Bitcoin ETF and Ethereum ETF
We all know that an ETF is a fund that allows you to make money by investing in a certain index or asset. Bitcoin ETF is like a new star with great potential. It has not yet been approved by the U.S. Securities and Exchange Commission (SEC), but it is expected that a wave of applications will be approved before 2024. Moreover, the Ethereum ETF may be able to keep up next year. This is a win-win for Ethereum’s liquidity and popularity!
2) Ethereum Cancun Upgrade and Token Issuance Carnival
Ethereum is now the big brother in the field of smart contracts, and various decentralized applications and financial projects rely on it. And the Ethereum Cancun upgrade starting in the first quarter of next year, oh my, this will infinitely increase the potential of Ethereum and the second layer (L2) ecosystem! Especially those projects that use zero-knowledge (ZK) L2 solutions will definitely usher in a wave of token issuance.
3) The impact of the U.S. interest rate hike cycle on the cryptocurrency market
The United States is the world's largest economy and financial market, and its monetary policy can have a major impact on the world. By 2024, the United States is likely to start an interest rate hike, raising the federal funds rate, and the money supply must be tightened. Once this happens, the price of the U.S. dollar will rise, and the cryptocurrency will appear to be somewhat devalued, which may also trigger market turmoil and investor panic. Therefore, cryptocurrency investors must always pay attention to the economic data and policy developments in the United States and make early plans.
4) Circle’s IPO and the popularity of crypto stablecoins
This circle is a company that specializes in providing encrypted stablecoin services. That thing called USDC ranks second here, only losing to Tether (USDT). This year, Circle is preparing to go public in the United States, becoming the first crypto-stable currency company to try its luck. This kind of thing will be of great benefit to the reputation and transparency of circle and USDC. By the way, it will also allow more institutions and individuals to choose to use encrypted stablecoins. I feel that the liquidity and stability of the cryptocurrency market will also be improved now. .
5) Bitcoin halving and increased scarcity
The star among cryptocurrencies is Bitcoin. Its price and market value have a huge impact on the entire market. When 2024 comes, Bitcoin will have to complete its fourth halving, and the reward for each block will drop from 6.25 Bitcoins to 3.1,25 Bitcoins. This means that the supply of Bitcoin will have to slow down, which may actually stimulate an increase in demand, thus promoting the overall increase in Bitcoin price and scarcity. Of course, the Bitcoin halving will also have an impact on the mining difficulty and computing power, and may even cause some technical and security challenges.
6) FTX cases and supervision become clearer
FTX is mainly engaged in cryptocurrency futures trading. The founder and CEO is only 29 years old, named Sam Bankman-Fried (SBF for short). Now the FTX case has come to an end and is facing restructuring. Once regulation becomes more and more in place, don't be afraid, the influx of new retail funds may be just around the corner.
To sum up, although there are still many unknowns in the encryption industry here, investors still need to pay close attention to the above major events that may disrupt the encryption industry, and it is imperative to prepare early. Generally speaking, the cryptocurrency market will definitely continue to maintain innovative vitality in the future, which is worth looking forward to!
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