2024 is almost upon us and the last few weeks have seen the crypto industry taking stock of 2023 and all its developments. From the scandal at Binance to the recovery of major tokens to the rise of new altcoins, 2023 was definitely an eventful year in the space.
We are also looking towards 2024, which is on track to be an important one for the industry. With this have come many predictions about specific tokens, regulations, crypto adoption, and much more. While no one can know for certain, here are some of the top predictions for the industry in 2024:
1. Adoption in the Face of Recession?
Many countries around the world are now facing the possibility of economic recessions and this could have an impact on the crypto industry. Some data suggests that consumers might turn towards non-traditional digital assets in the face of a recession. If this proves true, we could see higher rates of crypto adoption globally in 2024.
And these days, there is more awareness of crypto’s use outside of trading. Take gambling, which has become quite popular over the last few years. Many online gambling sites, such as the ones listed on valuewalk.com, accept cryptocurrency for placing wagers, and we could see more use of this. There is also the use of crypto for domestic payments for everything from food to rent, which could increase in 2024.
One of the biggest ongoing developments in the crypto industry right now is the BlackRock Bitcoin ETF which seems on the brink of approval. Industry watchers will remember that many companies have applied for the ETF over the years and all have been rejected. With BlackRock, however, the application seems to be almost done, with the company even agreeing with the SEC over some finer points of the proposed ETF.
If it does go through, it will be early in 2024 and could kick off a very profitable year for the industry. It will be the first Bitcoin ETF of its kind in the United States and there is even talk of ETFs for other major tokens like Ether being launched soon after. This ETF is predicted to go through at this stage and could be a turning point for not just Bitcoin itself or even BlackRock but the crypto industry as a whole.
3. Bitcoin Price Rallying
Another major prediction for 2024 is the rallying of the Bitcoin price, which has been a long time coming. The crypto market saw a major slump in the last year thanks to a general downturn coupled with the collapse of several crypto projects like FTX and Terra. But now, the trend has been reversing. Bitcoin has already broken through several resistance points in the past few weeks and things will only heat up in 2024.
There is the aforementioned BlackRock ETF that looks to send the price of Bitcoin even higher. On top of this, there is also the Bitcoin halving, which will reduce the rewards per block in the network. This has historically led to an increase in Bitcoin’s price, and this year looks to be no different. We also have to consider factors like the interest rate dictated by the feds and an overall air of optimism in the industry. Some analysts are predicting the price of Bitcoin will get as high as $100,000, but only time will tell.
4. Altcoins Following Suit
Bitcoin isn’t the only crypto that seems to have an exciting year ahead of it. Should the ETF launch and the price of Bitcoin spike, we can expect other altcoins to go along with it. The market has shown us countless times in the past that when Bitcoin does well, many altcoins enjoy the same benefits.
Besides the after-effects of the ETF, many tokens also have significant developments scheduled for 2024. Ethereum, for example, has announced that its Dencun upgrade is due to go live in early 2024 with trials holding on the Goerli, Sepolia, and Holesky networks. The major benefit of this upgrade is that it will improve the network’s scalability, as well as introduce proto-danksharding. This new measure will mean that Ethereum will be better able to store data and will see a reduction in gas fees. This will not only make the network better to use but should reflect positively on the price of its token as well.
5. Developments in Legal Cases (FTX, Binance etc.)
As we end the year, it is worth remembering that there are several legal cases within the crypto industry that have not yet been resolved. First, there is the issue of FTX. Last year, the company and its eccentric CEO Sam Bankman-Fried made headlines after billions in customer funds were lost and Bankman-Fried was arrested. This year, he was found guilty of several charges and faces possibly decades in jail. 2024 will see him convicted and, depending on the verdict, could send shockwaves throughout the industry.
There is also the issue of Changpeng Zhao, the former CEO of Binance, one of the biggest exchanges on the planet. Earlier this year, he was arrested and pled guilty to charges of violating the Bank Secrecy Act for enabling over 100,000 transactions on the exchange that funded illegal activity. He stepped down from his position and his sentencing is scheduled for February 2024. The outcome of his legal issues will inevitably impact the public image of crypto and Binance itself.
2024 is shaping up to be a definitive year for the crypto space. So far, we can expect a history-making ETF approval which will benefit the entire industry and lay the foundation for more to come. After enduring a harsh winter, we can also expect several tokens to see their value increase significantly, as well as more adoption from the public.
2024 will also see several high-profile court cases come to their conclusion and these will impact not only FTX and Binance but the perception of cryptocurrency as a whole.