What To Expect From Bitcoin and Crypto Markets In 2024 – Investopedia
KEY TAKEAWAYS
Bitcoin's recent rally may have taken it past the $42,000 market and helped put the crypto winter of 2022 far in the distance. However, it was also a year the largest cryptocurrency by market capitalization started on shaky grounds at a mere $16,500 level.
Here's what you need to know with the crypto markets looking ahead to the next year, standing at the cusp of important events such as the fate of the approval of a spot Bitcoin exchange-traded fund (ETF), Bitcoin halving, and developments in crypto regulation.
Ever since Blackrock (BLK) originally filed its spot Bitcoin ETF application with the U.S. Securities and Exchange Commission (SEC) in June, the impending approval of such a financial product has been the key area of focus for the crypto market.
So far, retail investors can only gain cryptocurrency exposure through ETFs that trade in cryptocurrency futures. A spot Bitcoin ETF would allow investors, especially retail investors, to gain access to Bitcoin without needing to hold their investment in a Bitcoin wallet.
Analysts expect big money to flow into Bitcoin spot ETFs if the SEC gives its approval, and that optimism has helped boost the price of Bitcoin, with the spot Bitcoin ETF market anticipated to grow to $100 billion over time, according to a report by Bloomberg. A report from Galaxy estimates inflows in spot Bitcoin ETF products could rise from $14 billion in the first year to $39 billion within three years.
That said, there remains uncertainty around the SEC's decision. The SEC has reportedly held multiple rounds of talks with prospective ETF issuers, with issuers amending applications to meet regulators' expectations.
"I'm optimistic, but I think it's quite likely we have another round of rejections before we get the positive news," BitGo CEO Mike Belshe recently told Bloomberg.
Blackrock and others have also filed for spot ether ETFs. However, the likelihood of approval for those products based around the alternative crypto asset is similarly unclear.
Bitcoin halvingor an event that roughly cuts in half rewards to Bitcoin miners for successfully mining the cryptocurrencyis expected to take place in 2024.
Why is it important? At 21 million, the supply of Bitcoin is finite making it harder to mine as more Bitcoins come into circulation. Bitcoin miners are rewarded for successfully mining a block. And the reward gets diminished with a halving, indirectly also impacting the number of Bitcoins in circulation. And price is inversely proportionate to supply.
The crypto market's boom and bust cycles have generally revolved around the Bitcoin halving event, which happens roughly every four years and involves a halving of the amount of new Bitcoin that is issued to miners on the network around every ten minutes.
According to a report from crypto asset manager Grayscale, there is reason to believe this halving event (and any positive tailwinds from a spot Bitcoin ETF approval) could be more impactful than it was in the past. This is due to the current distribution of the Bitcoin supply, which is largely held by entities that tend to hold for long periods of time.
"If these trends continue, the Grayscale Research team anticipates that the dynamics of Bitcoins ownership could increasingly amplify the impact of macro events, like evolving global policies and regulation (e.g., approval of US spot Bitcoin ETF), as well as crypto market developments, like the 2024 Bitcoin halving," said Grayscale Analyst Will Ogden Moore in the report.
Despite the Bitcoin-denominated cut for miners related to the halving event, Sabre56 CEO Phil Harvey says the mining industry will be fine, even in a scenario where a spot Bitcoin ETF is not approved. "In the absence of an ETF launch, the mining sector is likely to maintain its current state of health," Harvey told Investopedia. "Present revenue metrics for miners with direct access to power and equipped with state-of-the-art power generation reveal a robust economic landscape. The current economics are expected to endure, ensuring sustained and healthy profit margins post-halving."
2023 has been a massive year for crypto enforcement actions, with many of the biggest names in the industry, from Binance to Coinbase, facing lawsuits from the SEC or even the Department of Justice. Former FTX CEO Sam Bankman-Fried was found guilty of fraud and former Binance CEO Changpeng Zhao is facing charges of violating the Bank Secrecy Act.
After these recent events, it's becoming clear that the Wild West years of the crypto industry may be coming to an end. U.S. Senator Cynthia Lummis (R-WY) recently shared her optimism that regulatory clarity may finally arrive in early 2024 due to the move of traditional financial titans into the crypto market.
Additionally, U.S. Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam has pointed to Congress's increased concerns regarding crypto's potential use in illicit finance as a reason behind the legislative body's renewed interest in the subject.
In terms of other areas of regulation and policy that could affect the crypto market in 2024, TradeStation Head of Brokerage Solutions Anthony Rousseau pointed to the Financial Account Standards Board's (FASB) rule change for valuing crypto assets and a potential end to the Federal Reserve and other central banks' policies of monetary tightening.
The FASB rule change "opens the door for corporates now to have a path to add Bitcoin to the balance sheet as a reserve asset, as MicroStrategy has adopted," Rousseau told Investopedia. "Its plausible to believe we have reached the heights of this [central bank] tightening cycle. For risk assets to get a sustained bid we will need to see a path forward with lower rates and an end to Quantitative Tightening."
See original here:
What To Expect From Bitcoin and Crypto Markets In 2024 - Investopedia
- These Five Wall Street Titans Thought Bitcoin Was a Fad. Heres What They Say Now. - The Wall Street Journal - December 16th, 2024 [December 16th, 2024]
- Where Will Bitcoin Be in 1 Year? - The Motley Fool - December 16th, 2024 [December 16th, 2024]
- Bitcoin-to-Gold Ratio Hits Historic Peak as Year-End Rally Soars - Decrypt - December 16th, 2024 [December 16th, 2024]
- The Ultimate Guide to Investing in Bitcoin for Maximum Returns - Yahoo Finance - December 16th, 2024 [December 16th, 2024]
- Watch These MicroStrategy Levels as Bitcoin Hits Record, Stock Added to Nasdaq 100 - Investopedia - December 16th, 2024 [December 16th, 2024]
- From Qubits To Cryptos: What Quantum Means For AI And Bitcoin - Forbes - December 16th, 2024 [December 16th, 2024]
- Bitfinex projects Bitcoin peaking at $290k in early 2026 if historical patterns repeat - CryptoSlate - December 16th, 2024 [December 16th, 2024]
- Bitcoin Rises to Record After Longest Weekly Winning Run Since 2021 - Bloomberg - December 16th, 2024 [December 16th, 2024]
- Bitcoin hits a record above $107,000 as fresh bullishness propels the crypto higher - Markets Insider - December 16th, 2024 [December 16th, 2024]
- Bitcoin price today: steadies after hitting $106.5k record high - Investing.com - December 16th, 2024 [December 16th, 2024]
- Microsoft Just Made a Momentous Decision About Bitcoin That Could Dramatically Affect Your Ability to Become a Crypto Millionaire - The Motley Fool - December 16th, 2024 [December 16th, 2024]
- BlackRock recommends bitcoin portfolio weighting of up to 2% for interested investors - Reuters - December 16th, 2024 [December 16th, 2024]
- A Shocking Bitcoin Forecast for 2025 From the Wall Street Analyst Who Predicted Its Rise to $100,000 in 2024 - The Motley Fool - December 16th, 2024 [December 16th, 2024]
- Here's Why This Bitcoin Rally Is Different - The Motley Fool - December 16th, 2024 [December 16th, 2024]
- From $45,000 to $500,000, here's the bull and bear case for bitcoin in 2025 - Markets Insider - December 16th, 2024 [December 16th, 2024]
- Investors Withdraw Nearly $4,000,000,000 Worth of Bitcoin From Crypto Exchanges Over Past Week, Says Analyst - The Daily Hodl - December 16th, 2024 [December 16th, 2024]
- A Shocking Bitcoin Forecast for 2025 From the Wall Street Analyst Who Predicted Its Rise to $100,000 in 2024 - Yahoo Finance - December 16th, 2024 [December 16th, 2024]
- Bitcoin Reaches New All-Time High As Crypto Traders Prepare for a Second Trump Term - Cheddar - December 16th, 2024 [December 16th, 2024]
- Financial Health: What is Bitcoin? - WENY-TV - December 16th, 2024 [December 16th, 2024]
- Investors are bullish on a national bitcoin reserve under Trump, but there's a crypto bonanza brewing at the state level, too - Markets Insider - December 16th, 2024 [December 16th, 2024]
- Bitcoin is up by 138% this year. It is a nonsense-free rally - The Economist - December 16th, 2024 [December 16th, 2024]
- Bitcoin Mining Economics Continued to Improve in December, JPMorgan Says - CoinDesk - December 16th, 2024 [December 16th, 2024]
- NFL star Odell Beckham Jr., who took his $750,000 salary in bitcoin back in 2021, pokes fun at naysayers - Yahoo Finance - December 16th, 2024 [December 16th, 2024]
- $11.5 Trillion BlackRock Recommends As Much As 2% In Bitcoin Comparing It To The Mag 7 - Forbes - December 16th, 2024 [December 16th, 2024]
- Bitcoin price all-time highs driven by spot volumes Analyst says $115K is next - Cointelegraph - December 16th, 2024 [December 16th, 2024]
- Colorado Securities Commissioner Warns of Massive Increase in Scams Leveraging Bitcoin ATMs - Yellow Scene Magazine - December 16th, 2024 [December 16th, 2024]
- Bitcoin Jumps to Record Price as Ethereum Hits 3-Year High - Decrypt - December 16th, 2024 [December 16th, 2024]
- Bitcoin price hits new all-time high after Trump confirms BTC federal reserve plan - The Independent - December 16th, 2024 [December 16th, 2024]
- Perianne Boring Predicts Trumps 2025 Economic Policies Will Drive Bitcoin Price to $800K - Bitcoin Magazine - December 16th, 2024 [December 16th, 2024]
- Riot Platforms Stock Rises After It Buys $500 Million in Bitcoin - Barron's - December 16th, 2024 [December 16th, 2024]
- Can Realized Cap HODL Waves Identify The Next Bitcoin Price Peak? - Bitcoin Magazine - December 14th, 2024 [December 14th, 2024]
- Amazon and Bitcoin, crypto tips, and beyond the Magnificent 7: Markets news roundup - Quartz - December 14th, 2024 [December 14th, 2024]
- Bitcoin Price Hits Record High: What It Means for Your Portfolio Strategy - Investopedia - December 14th, 2024 [December 14th, 2024]
- Teaching Kids About Bitcoin Can Ensure Its Legacy Goes On - hackernoon.com - December 14th, 2024 [December 14th, 2024]
- TANSTAAFSBR, or, There Aint No Such Thing as a Free Strategic Bitcoin Reserve - Cato Institute - December 14th, 2024 [December 14th, 2024]
- What Happened in Crypto Today: Guess Who Wants Bitcoin Now - Yahoo Finance - December 14th, 2024 [December 14th, 2024]
- Bitcoin Hits $102K: Texas Makes History, BlackRock Bets Big, and Riot Faces a Shocking Ultimatum - Yahoo Finance - December 14th, 2024 [December 14th, 2024]
- Shrimp Bitcoin wallet numbers may spike 9% in the 'near future' Analyst - Cointelegraph - December 14th, 2024 [December 14th, 2024]
- Early Bitcoin Investor Sentenced to Prison for Tax Evasion on $3.7 Million BTC Sale - Bitcoin Magazine - December 14th, 2024 [December 14th, 2024]
- Bother with bitcoin? If you haven't bought crypto, it may be too late - USA TODAY - December 14th, 2024 [December 14th, 2024]
- Gold or bitcoin? Heres the case for adding both to your portfolio in 2025. - MarketWatch - December 14th, 2024 [December 14th, 2024]
- Trump's $1 billion promise, RFK Jr. on Ozempic, and Microsoft rejects Bitcoin: Business news roundup - Yahoo Finance - December 14th, 2024 [December 14th, 2024]
- Bitcoin price today: flat above $100k as rate jitters mount before the Fed - Investing.com - December 14th, 2024 [December 14th, 2024]
- A Beginner's Guide to Bitcoin Address Evolution Learning - Insights Bitcoin News - Bitcoin.com News - December 14th, 2024 [December 14th, 2024]
- Here's How Much $100 In Bitcoin Could Be Worth In 2030 If Cathie Wood's Price Target Is Reached - Yahoo Finance - December 14th, 2024 [December 14th, 2024]
- Bitcoin Mining Giant Riot Platforms Adds More Than $510,000,000 Worth of BTC to Corporate Treasury - The Daily Hodl - December 14th, 2024 [December 14th, 2024]
- What a small group of America's centimillionaires believe about bitcoin and its political future - Business Insider - December 14th, 2024 [December 14th, 2024]
- Why Its Not Too Late to Invest in Bitcoin - Bitcoin Magazine - December 14th, 2024 [December 14th, 2024]
- Why bitcoin surged to $100K US after Trump's election and where it goes now - CBC News - December 14th, 2024 [December 14th, 2024]
- The smartest Bitcoin ETF to buy with $2,000 right now - USA TODAY - December 14th, 2024 [December 14th, 2024]
- Early-Era US Bitcoin Investor Sentenced to Two Years in Prison for Underreporting Gains From BTC Sales - The Daily Hodl - December 14th, 2024 [December 14th, 2024]
- Bitcoin Price Rises. MicroStrategy Buys $2.1 Billion of the Crypto. - Barron's - December 14th, 2024 [December 14th, 2024]
- Texas bill would allow Bitcoin to be used for taxes, donations - NewsNation Now - December 14th, 2024 [December 14th, 2024]
- Dont use crypto to cheat on taxes: Bitcoin bro gets 2 years - Ars Technica - December 14th, 2024 [December 14th, 2024]
- The Bitcoin Hype Train Has Arrived On Cue (Cryptocurrency:BTC-USD) - Seeking Alpha - December 14th, 2024 [December 14th, 2024]
- Cryptocurrency Market Soars: Bitcoin Hits $100,000 While Ethereum, Solana and XRP Record Gains - Yahoo Finance - December 14th, 2024 [December 14th, 2024]
- BlackRock Recommends Bitcoin Allocation: Heres How Much Should Be in Your Portfolio - Brave New Coin Insights - December 14th, 2024 [December 14th, 2024]
- Bitcoin To $180,000, Ethereum Over $6,000, Solana To $500: VanEck's 2025 Crypto Predictions - Benzinga - December 14th, 2024 [December 14th, 2024]
- More stocks that are adopting MicroStrategys bitcoin yield strategy - CNBC - December 14th, 2024 [December 14th, 2024]
- Bitcoin May Hit $850,000, Former Thai Prime Minister Says By U.Today - Investing.com - December 14th, 2024 [December 14th, 2024]
- The Golden Ratio Multiplier Mathematically Reveals Next Bitcoin Price Target - Bitcoin Magazine - December 10th, 2024 [December 10th, 2024]
- Bitcoin is crashing, but options markets are calling for $111K BTC price by February - Cointelegraph - December 10th, 2024 [December 10th, 2024]
- Microsoft shareholders reject proposal to add Bitcoin to balance sheet - Crypto Briefing - December 10th, 2024 [December 10th, 2024]
- What to Expect from Bitcoin in 2025 - Morningstar - December 10th, 2024 [December 10th, 2024]
- Microsoft shareholders to vote on Bitcoin investment proposal in an hour, what we should expect? - Crypto Briefing - December 10th, 2024 [December 10th, 2024]
- Eric Trump Confident Bitcoin Price Will Hit $1 Million - Bitcoin Magazine - December 10th, 2024 [December 10th, 2024]
- Googles Willow quantum chip brings Bitcoin security debate 10 years closer - CryptoSlate - December 10th, 2024 [December 10th, 2024]
- What to know about investing in bitcoin after its price hit $100,000 - NBC News - December 10th, 2024 [December 10th, 2024]
- Bitcoin continues pullback from all-time highs, trading near $96,000: CNBC Crypto World - CNBC - December 10th, 2024 [December 10th, 2024]
- MicroStrategy Buys Another $2.1 Billion Worth of Bitcoin - Investopedia - December 10th, 2024 [December 10th, 2024]
- Bitcoin poised for golden age in 2025 with $200k milestone projection Bitwise - CryptoSlate - December 10th, 2024 [December 10th, 2024]
- Charts show bitcoin, ether could stall for another couple of weeks before resuming their uptrend - CNBC - December 10th, 2024 [December 10th, 2024]
- The Wall Street Analyst Who Suggested Bitcoin Could Reach $100,000 a Decade Ago Now Says There Is a Small Chance It Replaces the U.S. Dollar Entirely... - December 10th, 2024 [December 10th, 2024]
- Bitcoin clears another record: Is now the time to invest? - Yahoo Finance - December 10th, 2024 [December 10th, 2024]
- Trump family and allies to bask in crypto industry's euphoria at Gulf bitcoin gathering - Reuters - December 10th, 2024 [December 10th, 2024]
- Marathon Digital boosts Bitcoin reserves by over 50% this quarter, nears $4 billion in holdings - CryptoSlate - December 10th, 2024 [December 10th, 2024]
- Bitcoin tumbles will be less abrupt after realized profit drops 76% - Cointelegraph - December 10th, 2024 [December 10th, 2024]
- Microsoft will make the decision on Tuesday to add Bitcoin to its reserve - Bit2Me Crypto News - December 10th, 2024 [December 10th, 2024]
- Crypto crash wipes out $1.7 billion in leveraged positions, Bitcoin plunges toward $94,000 - Crypto Briefing - December 10th, 2024 [December 10th, 2024]
- Bitcoin holds steady near $100,000 as selling pressure is absorbed - CryptoSlate - December 10th, 2024 [December 10th, 2024]