Cryptocurrency analysts name the events that will drive the token market growth in 2024

After a successful first half of the year, when the price of BTC $89,885.71 Bitcoin -1.02% Market capitalization $1.78 trillion VOL. 24 hours $2.16 billion briefly exceeded $ 30,000, the global cryptocurrency community has faced challenges and downturns. However, despite the current difficulties, many analysts expect a dramatic turnaround in 2024 and the start of a bull market.

There are good reasons to believe that 2024 could bring a new wave of optimism for cryptocurrencies and thus provide favorable conditions for a price revival. The bull run is expected to be driven by a combination of major catalysts, primarily the halving of bitcoin, the Fed’s interest rate cuts, the potential launch of spot exchange-traded funds (ETFs), the US election, and bullish indicators and data on the web. Cryptocurrency investor Mister Crypto spoke about this.

The first and most important catalyst for growth is bitcoin halving. Approximately every four years, BTC experiences a halving event, when the rate of generation of new bitcoins is halved. This scarcity factor has historically led to an increase in demand and prices. As the next halving event approaches in 2024, investors expect a decrease in supply, which could potentially lead to higher prices.

Further, after almost continuously raising interest rates, analysts expect the US central bank to introduce rate cuts in 2024. It should be noted that lower interest rates usually lead to lower yields on traditional investments such as bonds and savings accounts.

As a result, investors start looking for alternative assets with greater profit potential, including cryptocurrencies, thereby increasing demand and prices for them.

The potential approval and launch of the long-awaited spot bitcoin ETF is also expected in 2024. If the U.S. Securities and Exchange Commission approves these financial products, they could attract institutional investors who have been hesitant to enter the crypto market, as ETFs are a more accessible and regulated investment vehicle.

Also, the US is set to elect its next president in 2024. Political events such as presidential elections can have a significant impact on financial markets. If the next administration provides a favorable regulatory environment for cryptocurrencies and blockchain technology, it could encourage greater adoption and investment in the crypto space, strengthening the overall market and stimulating a bull market. On the other hand, an «anti-cryptocurrency» US president and administration are likely to have a negative impact on digital assets.

As a reminder, ChatGPT, an AI-based chatbot, recently predicted growth for bitcoin in the near term. AI identified numerous factors that will determine the price of bitcoin during the next wave of growth. One of them was the attraction of institutional investors.