Cryptocurrency is still a relatively new thing comparatively speaking, but it has been around long enough that investors feel as though they are starting to get savvy. Identifying trends in the market is critical to getting a jump.
Though 2024 is halfway over, there are still trends that watchers of the market should be keen on. Though there is no sure way to stay ahead of the market, these trends will ensure that you are in the right position to make a smart move with your investments.
Emergence of Bull Market in the Wake of ETF Approval
The price of Bitcoin (BTC) has skyrocketed since the beginning of the year, more than 150% to be exact. Check social media and expert pundits and there is the overwhelming feeling that the bull run could go well into 2025. That kind of surge can mean hundreds of thousands, if not millions, of dollars to some investors.
Bitcoin began 2024 at around $44,000 but was nearly $70,000 by the time May rolled around. Some experts feel that it could challenge $80,000 by the end of 2024 and even top $100,000 per coin in 2025. The approval of spot ETFs and the halving event coming up are major drivers of that. Demand has gone up and the price has gone up along with it.
AI and Crypto Meet
Artificial intelligence has been one of the primary topics of the technological world in 2024. So, it only stands to reason that one of the biggest trends in crypto would be the intersection of the two. AI tokens are becoming more relevant and could potentially be involved in things like decentralized machine learning, web platforms, and blockchain protocols.
Users can also use tokens to access data or pay for services, to provide governance rights, and more. There are almost 90 AI tokens in the crypto space and that number will only go up. The combined value of those AI tokens is nearly $40 billion, showing unreal growth as the two worlds continue to merge.
Major Movement
One of the primary stories about the cryptocurrency world is its volatility. In 2022, crypto bankruptcies were a major talking point. By the end of 2023, however, investor confidence had turned a corner, putting nearly $2 billion into crypto-related companies.
By February of this year, almost $500 million of VC funding went into blockchain startups. The goal is to find real-world applications for the blockchain and they need the infrastructure to implement those real-world applications. Bitcoin miners, in particular, are coming out ahead from an investment standpoint in 2024.
Increased Regulations
One of the major drawbacks to the industry has always been its regulatory policies or a lack thereof. Though regulations are improving and becoming more commonplace, they acrre still lacking. The complete meltdown of FTX and other major altcoins wound up putting an uncomfortable spotlight on the industry and its regulation.
The SEC, the most active regulatory body regarding crypto, has been vocal about supporting further regulation. Gary Gensler, the head of the SEC, said that the industry is “rife with fraud and manipulation.” Given the major calling point of safety and security that cryptocurrency offers, it creates challenges.
The SEC approaches crypto like stocks. This means that crypto firms are now required to not only register with the SEC but to follow disclosures set forth by the group. The lack of other government entities in the regulatory realm is still a huge challenge. Even the existing regulations aren’t all that clear. Look for 2024 and 2025 to see major pushes in the realm of regulation.
