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We expect 2024 to be another grand year for crypto. Experts are excited for an unprecedented bull run this time around, as different factors indicating a rewarding year for the crypto market are lining up.
This blog post will look at some of those factors briefly and how they could impact crypto if they eventually fall on. Let's dive into it.
The upcoming US elections
What happens in the United States usually affects the globe, particularly in finance. The path taken by the US often influences other countries. This is also evident in crypto, with an impressive 52 million US crypto owners. These crypto populations make up a huge part of the US electorates who are eligible to vote in the next presidential election.
However, the US government has been known to be anti crypto with the security exchange commission SEC fighting left and right to see crypto goes into extinction in the country. The outcome of the next US presidential election in November this year therefore, could have a major impact on the crypto industry as a whole. The reason for this is simple: the regulatory and financial decisions made in the US somewhat have a noticeable impact on the global crypto industry. The SEC activities in the past is an attestation to that. But, this time, crypto conversation has entered into the political space in the US in such an interesting way.
Candidates are voicing louder and louder about their support for Bitcoin, and quite visibly treating their policies on Bitcoin if elected into the country's leadership.Washington could craft more crypto-friendly regulations if any of the pro-crypto candidates win the election. In any case, the cryptocurrency landscape is set for a shaking with the US presidential election in November 2024.
The Bitcoin Halving
Time's running out, the Bitcoin halving looms with fewer than 100 days to go! This important event is projected to occur on April 24th this year. The halving has previously shaken the crypto market, making it worth keeping an eye on.
Every four years, Bitcoin halving occurs. This action slices miner rewards in half to curb oversupply and inflation. The halving has historically influenced Bitcoin's price because new market supply decreases, emphasizing the scarcity of Bitcoin.
The halving, set for April 24, will cut the BTC miners' reward per block from 6.25 to 3.125. Past records reveal that BTC's price soared months after the first halving, well above the levels before halving. The 2016 halving also prompted a surge in BTC's price. Next came the 2020 halving, sparking a bull run that set BTC at an all-time high of $69,000. With this year's halving, we might see a double bull run as other significant events coincide within the halving year.
Africa Crypto Surge in adoption
A Chainalysis research recently showed that crypto investments are growing rapidly in sub-Saharan Africa more than other regions, a sign that crypto has become well accepted and used daily in Africa. Nigeria top the list of countries exemplifying the adoption of crypto. "Currently ranked second best on our Global Crypto Adoption Index, leading the region in the most transaction volume," Chainalysis report.
More Nigerians are turning to crypto as a means to escape the high inflation rate that has seen the Nigerian naira devalued against the US dollar. Moreover, crypto for Nigerians is also a medium to gain unhindered access to Dollars for hedging against Naira volatility. Most recently, the Nigerian government lifted the ban on crypto trading in the country, this could see a surge in new comers investment from Nigerians as crypto is considered the best helge against the naira.
The Bitcoin ETFs
This is not news anymore, 11 spot Bitcoin exchange traded funds was approved by the Security and Exchange Commission (SEC) on 10 January. That was a landmark decision which analysts believe could lead to an influx of new money from institutional investment into bitcoin.
The timing of the ETFs approval seems very perfect for crypto, with other Notable developments lining up for the year. Initial coin offerings (ICOs) came to trigger the 2017 bull run, then, in 2020, NFTs became the bride of crypto, bringing new grooms into the space with fresh money. This time around, the BTC ETFs could be the lightning candle that will ignite the next bull run.
AI coming into crypto, and everything
There was a lot of hype around AI in 2023 coming into crypto to streamline the process of automation and trustless transactions in an automated ecosystem. AI could be an enhancement for crypto development, and according to analysts AI was regarded as the most significant breakthrough in human history. This year will likely see more AI integration into crypto as development around this particular field is not slowing down anytime soon. AI is rapidly digging its way into every field, and It seems like no industry will be left out of the technology, with crypto being at the helm.
What's next for crypto? Tokenize everything?
It’s time to pay attention to what is happening around crypto with tokenization of real world assets entering the space. Blockchain for tokenization of real world assets has been envolving in recent times, allowing individuals to tokenize their real world assets in digital form. Tokenization is simply a way to give asset digital representation with a crypto token and be immortalized on a blockchain. Real world assets in this case could be a house, a fraction of a house, land, jewelries, and any other goods that can be represented by digital form.
In conclusion, 2024 seems set to be a historic year for crypto in terms of development and adoption. We are seeing a new wave of development in different sectors with new players coming into the space. It's a moment of reckoning as we turned the corner of the last quarter of 2023 into the beginning of 2024 with higher hopes for the year.