Get Ready for 2024’s Bull: Key Crypto Trends & Events to Look For

The year 2023 was marked by a mix of triumphs and challenges within the cryptocurrency sector. The industry saw the shutdown of numerous exchanges and products, alongside significant legal actions, such as those taken against major exchanges like Binance by the United States Securities and Exchange Commission (SEC). These events painted a complex picture of both progress and setbacks.

Despite these challenges, experts are optimistic about the potential for a market upswing in 2024, driven by anticipated key developments. This article aims to shed light on important cryptocurrency trends and milestones to watch in the coming year. By gaining insights into these anticipated events, investors and enthusiasts can better position themselves to capitalize on the potential for a bull market.

Essential Cryptocurrency Trends to Watch in 2024

Embracing Sustainable Bitcoin Creation: The creation of new bitcoins, a process known as mining, involves participants solving complex mathematical puzzles. Successful miners are rewarded with new bitcoins and transaction fees, contributing to transaction verification and network security. However, the traditional mining process is notorious for its high energy consumption and environmental impact. In response to growing environmental concerns and the surge in activism, the mining community is increasingly turning to renewable energy sources, such as wind, solar, and hydroelectric power, for bitcoin mining operations. This shift towards sustainability aims to address criticisms of bitcoin's environmental footprint. As the cryptocurrency sector evolves, these efforts are persuading even the most skeptical observers that cryptocurrencies can indeed align with a future where finance is both innovative and eco-friendly.

Institutional Adoption Gains Momentum: The widespread adoption of blockchain in sub-Saharan Africa has been hindered by a lack of institutional support. Traditionally, companies, banks, and governments, which are highly respected, have been skeptical about cryptocurrencies and blockchain technology. However, as the global economic challenges persist and cryptocurrencies offer viable solutions, there's a noticeable shift. Institutions are moving from skepticism to easing crypto regulations and adopting its use, driven by the current economic climate. This shift is crucial for the cryptocurrency ecosystem, promising to enhance liquidity and spur market growth.

Rise in Crypto Regulations: The cryptocurrency sector, long characterized by minimal regulation, is seeing a shift as institutional adoption grows. Regulations are now being implemented on both national and continental levels, with varying impacts on cryptocurrency use. For instance, while China's ban highlights restrictive measures, most regulations introduced have been favorable towards cryptocurrencies, enabling a secure environment for participation in the crypto ecosystem. As we move into 2024, an increase in crypto regulations is anticipated. The outcomes of these regulations remain uncertain; they could either stimulate market growth or impose barriers that hinder participation in the ecosystem.

NFT Evolution: NFTs, or non-fungible tokens, are distinct digital assets that represent ownership of unique items, making them irreplaceable and non-interchangeable. Initially, NFTs were primarily associated with digital art, but their scope has expanded to encompass a wide range of digital properties, including music, literature, and even real estate. NFTs have gained prominence for their significant role in the creator economy, offering novel benefits that have fueled their popularity. Despite experiencing a downturn after the 2021/2022 surge, NFTs are witnessing a resurgence. This revival is driven by a notable increase in NFT transactions on the bitcoin network, particularly through Ordinals. By December 2023, these transactions reached a trading volume of $36 million. The growing interest in NFTs on the bitcoin network, coupled with advancements in research and market innovation, suggests a potential rebound for NFTs in the wake of the previous boom's effects.

AI Meets Blockchain: Artificial Intelligence (AI) is revolutionizing industries, including the cryptocurrency sector, by boosting efficiency, security, functionality, and speed. Integrating AI with blockchain opens up boundless possibilities, particularly in enhancing smart contracts. AI can assist in detecting bugs and ensuring system efficiency at every stage, from development to deployment.

Key Crypto events to Look Out For in 2024

Circle's IPO: Circle Internet Financial, LLC, the entity behind the USDC stablecoin, plans to go public in 2024. This significant event, considering stablecoins' role in countering inflation within the global economy, could foster the adoption and usage of stablecoins.

Bitcoin Halving Event: Bitcoin undergoes a halving every four years, cutting miner rewards in half to preserve its inflation resistance. Since the initial halving in 2012, which reduced rewards from 50 BTC to 25 BTC, each event has significantly influenced bitcoin's supply, demand, and price. The upcoming halving in April 2024 is anticipated to follow this trend. Historical patterns, like the 2016 halving that saw bitcoin's price escalate from $417 to $650 and eventually to $920 by January 2017, suggest the asset's value tends to increase post-halving due to the reduced supply. Although market volatility makes precise predictions challenging, an increase in bitcoin's value post-halving is generally expected.

Ethereum's Dencun Upgrade: Ethereum continues to lead in environmental sustainability within blockchain technology, highlighted by the 2022 merge and the upcoming Dencun upgrade. Aimed at launching early this year, Dencun focuses on increasing the Ethereum network's speed and security, and significantly reducing its energy consumption. Success of the upgrade introduces Proto Danksharding, a feature designed to lower transaction fees on the network, making Ethereum more efficient and cost-effective.

Resolution of FTX Legal Cases: Following its bankruptcy in 2022, FTX, a major cryptocurrency exchange, has faced numerous legal challenges from individuals, corporations, and regulatory bodies. These cases are expected to reach a resolution in 2024, with the outcomes impacting all involved parties.

2024: A Year of Potential for Cryptocurrencies

The crypto market's inherent volatility makes precise predictions for 2024 challenging. Yet, with pivotal events such as the bitcoin halving, experts anticipate significant growth in cryptocurrency values. Investors should approach the market with caution, conducting diligent research and staying updated on the latest trends and developments in the cryptocurrency sector.