Cryptocurrency analysts predict significant growth of the cryptocurrency market in 2024

Finbold analysts have shared their forecasts for crypto assets in 2024. They noted that after the rapid growth of Bitcoin BTC $95,801.54 Bitcoin -1.87% Market capitalization $1.9 trillion VOL. 24 hours $1.54 billion quotes from $ 17,000 to $ 30,000 in the first half of 2023, the situation in the industry has relatively stabilized. This was the result of the US Federal Reserve’s (Fed) policy to fight inflation.

Experts believe that next year will be positive for the industry. The bull market is expected to be driven by a combination of major catalysts, including the Fed’s interest rate cuts, the potential launch of BTC spot exchange-traded funds (ETFs), the US elections, and in-network indicators.

The halving of the reward for mining Bitcoin blocks will be the main event. Every 4 years, the halving procedure reduces the amount of BTC miners receive. The scarcity factor historically increases the demand for the digital coin and, consequently, its price.

Second, the US central bank is expected to start cutting interest rates in 2024. This will potentially lead to a decrease in the profitability of traditional assets. As a result, investors will have to look for alternatives with higher profit potential, including cryptocurrencies.

The potential approval and launch of a spot BTC-ETF is also expected in 2024. If the U.S. Securities and Exchange Commission (SEC) allows the implementation of such a financial product, it will attract new investors, making cryptocurrencies more accessible. In turn, this will bring additional liquidity to the market.

Finally, the US will elect a president, which could have a significant impact on financial markets. If the new administration provides a favorable regulatory environment for cryptocurrencies and blockchain technologies, it will stimulate wider adoption of digital assets and attract new investments.