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

The year 2023 was an eventful one for crypto, with exciting highlights and not-so-great moments. Stepping into 2024, it's hard to tell what the future will hold for cryptocurrency, even though experts predict a potential bull run based on specific trends and upcoming events. However, it's too early to tell with certainty. 

Here are some of the significant trends and developments that could shape the future of digital money.

Takeaways:

• The next Bitcoin halving, expected in April 2024, will reduce the amount of available Bitcoin and is likely to increase its value, but its impact is unpredictable due to market sentiment and mining competition.

• Events, new rules and technological changes can significantly impact the cryptocurrency market, altering people's perceptions toward investing and determining their financial gains or losses.

• In order to prepare for a potential market upswing, it’s important to conduct thorough research, diversify your portfolio and take advantage of Bybit's Saving products.

Why Does Crypto Have a Bullish Outlook for 2024? 

Crypto’s future looks promising in 2024 for a few key reasons. First off, potential approval looms for a Bitcoin spot ETF. The U.S. Securities and Exchange Commission (SEC) has delayed its decision on proposals for spot Bitcoin ETFs from BlackRock and other major entities until January 10, 2024. A Bitcoin spot ETF would make it easier for more investors to get into Bitcoin without needing their own digital wallets, likely boosting its demand and value. 

The anticipated Bitcoin halving event expected in April this year could make Bitcoin even rarer and more valuable. This event happens every four years and cuts the creation of new Bitcoin in half, potentially pushing prices higher. 

Also, there's a growing interest in regulating crypto. If laws are put in place by the U.S. Congress and other regulators this year, it could bring more stability and credibility to the crypto world, protecting investors and encouraging more innovation and acceptance.

Read more: BlackRock Bitcoin ETF: Exploring What It Is and Its Impact on Bitcoin Prices

What Does the End of the U.S. Interest Rate Hike Mean for Crypto? 

The Federal Reserve has paused interest rate hikes and is considering lowering interest rates in 2024. This move could affect the crypto market in several ways. Firstly, it's likely to spark increased interest in riskier assets like cryptocurrencies and related stocks because they offer higher returns than traditional investments. The excitement surrounding Bitcoin ETFs and the upcoming halving will likely intensify this trend. 

However, the move toward tokenizing real-world assets, such as treasuries, may slow as these investments become less attractive due to lower interest rates. Instead, investors may turn to decentralized finance (DeFi) platforms that allow them to earn better returns by lending and borrowing using crypto assets. 

Generally, lower interest rates could be good news for the crypto market. Cryptocurrencies may be seen as a way to protect against inflation and currency devaluation, especially as they have limited supply and are not controlled by any central authority. This sentiment makes them an appealing option in a low-interest-rate environment.

Key Events and Trends That Could Be Game Changers for Crypto 

Besides macroeconomic and industry factors, specific events and trends may impact the crypto market in 2024.

Bitcoin Halving 

Bitcoin halving is a process that happens every four years, and it reduces the reward for mining new Bitcoin blocks by half. The next halving is expected to take place in April 2024. This event is important because it can have a big impact on the supply and demand of Bitcoin, which in turn affects its price. 

In the past, after halving, there has been an increase in the value of Bitcoin because the supply of new Bitcoin gets reduced, making it more valuable. However, it's difficult to predict exactly what will happen this time, as it depends on factors like the mining difficulty, the hash rate, market sentiment and competition from other cryptocurrencies.

Circles IPO 

Circle Internet Financial, LLC (issuer of USDC stablecoin) is a crypto platform that offers trading, lending, borrowing, staking, and earning services. A Bloomberg report reveals the company is considering going public in 2024, meaning it will become publicly traded. This move aims to encourage the widespread use of cryptographic stablecoins, which are more stable than other cryptocurrencies. 

This widely anticipated IPO is expected to bring more credibility and visibility to the world of cryptocurrencies and attract more investors and users to the platform. However, going public can also bring challenges like regulatory scrutiny, market volatility, and competition from other platforms.

ETH Dencun

Ethereum's Dencun upgrade is a major upgrade to its network that aims to make it faster, more secure, and more eco-friendly. Set to launch in early 2024, this upgrade will introduce “Proto-Danksharding,” which will reduce fees for layer 2 rollups and increase available data storage space. If successful, Dencun could make Ethereum more efficient and affordable for users while also reducing its energy consumption. 

Still, the upgrade faces challenges such as the intricate engineering involved, the need for efficient coordination and communication among the developers and the community, the possibility of encountering bugs and vulnerabilities during the testing and deployment phase, and the unpredictable and fluctuating nature of the cryptocurrency market.

FTX Cases Coming to a Resolution 

Following its collapse in 2022, the popular crypto exchange FTX has been involved in several legal cases. Individuals, other companies and government agencies have accused FTX of market manipulation, fraud, money laundering, unfair competition and breaking securities laws. The outcome of these cases could significantly affect the regulation and operation of digital currencies, and how people buy and sell them.

More Upcoming Crypto Events 

Crypto events are gatherings where people interested in cryptocurrency get together to share their experiences, insights, and ideas about the industry. These events can take place both online and offline, and they could either be formal or informal, covering different topics like technology, business, education, and entertainment. 

Some of the most notable events in 2024 include Consensus, the biggest and most influential crypto conference in the world; Devcon, the yearly Ethereum developer conference; and Bitcoin 2024, the year’s foremost annual Bitcoin event. Crypto events positively affect the industry because they help founders, developers, investors, brands, policymakers, and more make connections, learn new things, work together, and develop new ideas.

Institutional Adoption 

Institutional adoption is when large and established organizations like companies, banks, and governments use cryptocurrencies more. It's expected that this trend will continue in 2024. This development is good for cryptocurrencies because these organizations will push more funds into the crypto ecosystem, boosting liquidity and market stability. 

The involvement of institutions in crypto will also drive the growth of relevant infrastructure to support their activities. Custody solutions, exchanges and compliance frameworks will continue to evolve, fostering greater trust and adoption.

Read more: Who Owns the Most Bitcoinin 2024?

Crypto Regulations 

Crypto regulations are rules and standards controlling how people use digital currencies like Bitcoin, Ethereum, etc. These rules cover taxation, licensing, reporting, and following specific guidelines. The regulations around crypto can either help the industry grow by providing clarity, safety, and incentives to users or make it harder for people to use by creating barriers and penalties. 

Some examples of crypto rules that might happen in 2024 include the U.S. government passing the so-called Crypto Tax Fairness Act, so people don't have to pay capital gain taxes on small crypto transactions. The European Union could also implement the Markets in Crypto-Assets (MiCA) Regulation, creating a set of rules that apply to all countries in the union. However, on the downside, the Chinese government's ban on all crypto activities within its border, including mining, trading and holding, could remain firmly in place.

NFT and Web3 Ordinals Making a Huge Comeback

Non-fungible tokens (NFTs) are digital assets that allow creators to claim ownership of their digital content, such as art, music, and even real estate. NFTs are reshaping how people own and value digital assets and are set to become mainstream in the next few years. 

Although the value of NFTs took a hit after the 2021-2022 boom, there is promising news that they might make a comeback, especially on the Bitcoin network. Bitcoin is becoming a popular platform for NFTs, and has seen a sharp rise in daily transactions. These Ordinals (NFTs on the Bitcoin network) have seen a spike in daily transactions, hitting a $36 million trading volume in December 2023. With the increasing competition and innovation in the NFT market, the crypto and web3 space is expected to experience exciting changes this year.

Bitcoin Mining 

Bitcoin mining is the process of making new bitcoins by solving complicated math problems. This process also secures the Bitcoin network and verifies transactions. However, mining demands a lot of electricity and computing power, which can be a problem for the environment and the future of cryptocurrencies.

To address these concerns, many miners now use renewable energy sources like wind, solar, and water power to generate electricity for their mining activities. Some miners also use a byproduct of oil and gas extraction called stranded gas to mine Bitcoin while reducing waste and pollution. These practices show that Bitcoin mining can be environmentally friendly and contribute to a sustainable future for crypto.

How to Prepare for the Potential Bull Run

2024 is expected to be a big year for cryptocurrencies, with many experts predicting a significant increase in their value. However, investing in cryptocurrencies can be risky, so it's essential to be prepared and have a clear plan. 

Here are some tips to help you get ready.

• Don’t invest until you do your research: Don't just trust what others say; verify the facts and sources yourself. Stay on top of the latest news and developments in the cryptocurrency space. Remember to weigh the risks and benefits before making any investment decisions.

• Diversify your investments: Don't put all your money into one cryptocurrency, but spread your investments across different types, such as Bitcoin, altcoins, DeFi, NFTs, and more. Also, diversify your investments across different strategies, such as trading, lending, borrowing, staking, and earning. This approach can help you reduce your risk and increase your profit chances.

• Consider using Bybit Earn products: To prepare for the potential Bitcoin bull run, you can use Bybit Earn products and BTC-related products to grow your crypto assets and hedge against market risks. Bybit is a trustworthy platform that offers a range of cryptocurrency products and services. Some of the products you can use are:

• Bybit Savings: You can deposit your BTC in flexible- or fixed-term savings products that offer competitive and guaranteed APYs. This way, you can earn a stable yield on your idle assets and withdraw them anytime (flexible term) or at the end of the plan (fixed term).

• Liquidity Mining: Provide liquidity to the BTC/USDT perpetual contract market on Bybit and earn yield from the trading fees. You can also use leverage to increase your share of the pool and maximize your potential yield. This product is suitable for long-term yield seekers and DeFi enthusiasts.

• Dual Asset: This short-term trading tool allows you to buy low or sell high based on your market view. You can accumulate USDT or BTC through a higher interest yield and use the Auto Reinvest function to compound your returns. This product is ideal for users who are comfortable holding either USDT or BTC and wish to earn potentially higher yields or accumulate alternative crypto assets in a downturn market.

What if the Market Moves Against You?

Volatility is notorious in crypto investment. However, with sufficient planning and hedging, implementing strategies against these fluctuations can be effective if done correctly. Bybit offers a full suite of product and service offerings to help you plan your crypto investments ahead of time. Here are some products you can consider. 

Bybit Double-Win: Subscribe to this non-principal-protected, short-term structured product that pays off if BTC’s price moves outside a predetermined range. It’s perfect for traders looking for short-term returns and anticipating strong market movements. You can also use it to hedge or leverage against spikes in volatile markets.

Bybit Trading Bots: Crypto trading bots are automated computer programs that can help you buy low and sell high (i.e., place buy and sell orders at predetermined intervals within a predefined price range) in order to capitalize on price fluctuations, especially in a volatile 24/7 crypto market. 

• Futures or Spot Grid Bot: These bots use automated trading strategies designed to place long and short positions at predetermined intervals within a predefined price range. They’re ideal regardless of the market conditions.

• Futures Martingale Bot: The Bybit Futures Martingale Bot is built upon the foundational principles of the traditional Martingale strategy. The bot automatically places an additional order when the market price experiences a specific percentage increase or decrease. This order is a preset multiple of the previous buy-in, which is part of the strategic approach to improving the average entry price. 

• Aurora AI Bot: Bybit Aurora AI utilizes artificial intelligence to analyze historical market data. The backtesting analysis spans across seven days, identifying optimal strategy parameters based on yield, arbitrage frequency and other critical factors. The AI then formulates intelligent parameter strategies, simplifying the trading process for users. These strategies are categorized into High Yield, Stable and High Frequency, each one tailored to different trading preferences and goals.

Bybit Options: For traders looking to manage risk and capitalize on market movement, options are a popular investment strategy. Crypto options, for example, are contracts that allow the trader to buy or sell an asset at a specified price within a given time frame or by a specific expiration date. 

In combination with Bybit’s Unified Trading Account (UTA), traders can better hedge their positions without separating their accounts for different Derivatives products, so margins won't require additional capital for offsetting risks.

Try Bybit USDC Options

The Bottom Line

The coming year of 2024 will be an exciting and uncertain period for people interested in cryptocurrency. Several important events will take place — such as the Bitcoin halving — which could affect the market in different ways. 

Some people believe the market will rise, but others think it may fall, so caution is required. If you want to invest in cryptocurrency, it’s important to first do your own research. In addition, it’s a good idea to spread your money across different types of crypto and different investment strategies. Some platforms, like Bybit, offer ways to earn money and protect your investments from sudden changes in the market. 

The crypto space is constantly changing, and investors need to remain informed and flexible. In order to succeed in this new financial world, it’s essential to adapt to new situations and be prepared for whatever comes.

#TheCryptoArk #Bybit