2023 is over and Bitcoin ETF decisions are expected to be announced in a few days. Meanwhile, many analysts are predicting a bull run in 2024 for Bitcoin followed by altcoins. Additionally, popular crypto analyst Lark Davis expressed his valuable opinions. Here are insights into why 2024 could bring a transformative boom to the cryptocurrency market, according to the analyst…
ETF prospect and global stock markets impact altcoins and Bitcoin
The surge in global stock markets to unprecedented highs is a crucial bellwether for potential gains in the crypto market. This positive momentum points to increased wealth and liquidity, creating favorable conditions for investors to turn to cryptocurrencies. An important development is the highly anticipated adoption of the Bitcoin ETF by January 5-10, 2024. If this approval is passed, there may be a significant liquidity inflow to the cryptocurrency market. The ETF offers institutional, pension and retirement funds access to Bitcoin; This is a historic development that could generate tens, perhaps even hundreds of billions of dollars in revenue.
Coinbase’s victory and FED interest rates
Lark Davis and other analysts predict that Coinbase will win the lawsuit against the SEC, strengthening the industry’s stance against excessive regulatory intervention by the SEC. Such an outcome could build confidence and open the door to additional regulatory developments. Another critical development is FED data. The Fed’s expected rate cut in 2024 is consistent with a more general risk-taking attitude. Interest rate cuts mean a more suitable environment for investors and increase economic activity. This positive move could increase market optimism for BTC and altcoins as investors seek higher returns in alternative assets with lower interest rates.
Halving, EU cryptocurrency law and more…
The Bitcoin halving, scheduled for April 2024, represents a fundamental aspect of the cryptocurrency protocol. This event occurs approximately every four years and slows down the rate at which new bitcoins are created. As supply decreases, Bitcoin becomes more scarce, potentially causing demand to increase. Combined with the fact that retail investors are currently buying as much Bitcoin as miners are producing, this scarcity effect could have a significant impact on Bitcoin’s value. On the other hand, despite its drawbacks, the MiCA law focusing on cryptocurrencies offers regulatory clarity in the EU, potentially attracting the attention of more discerning investors.
FASB’s Bitcoin accounting standards, which will go into effect in 2024, could encourage various companies to integrate Bitcoin into their financial strategies. Additionally, the launch of popular crypto and Web 3.0 games will enable millions of people to gain exposure to crypto assets through in-game rewards and NFTs. On the other hand, significant developments in altcoins Ethereum and Solana are increasing their competitiveness and attracting the attention of a wider user and developer base. Finally, although it officially starts in January 2025, the expectation that central banks will keep 2% of assets in crypto in the 4th quarter of 2024 may create a positive atmosphere in the market.
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