6 major events affecting the crypto industry in 2024

Written by: Gracy Chen**, ET CONTRIBUTORS**

Translation: Vernacular Blockchain

2023 has been a mixed year for the crypto industry. While the downturn seen in early 2022 continued into the first half of 2023, the application of traditional financial giants such as BTC ETFs also raised a glimmer of hope, such as BlackRock. This provides much-needed support for traditional tokens to gain value and break the curse of a long-term bear market. The BTC is scheduled to halve in early 2024 and is expected to trigger a new bull run.

In light of this, people are waiting for 2024 to be enthusiastic about the cryptocurrency industry. This article will outline six key events to watch in 2024 and their potential impact on the market. Understanding these events can allow you to better navigate the cryptocurrency market and seize investment opportunities. Whether you’re a seasoned investor or new to cryptocurrency, this information will help you make an informed decision.

1, BTC ETF approval and ETH Fang ETF expectations

The market is extremely optimistic about the approval of ETFs, and the U.S. Securities and Exchange Commission (SEC) launched BTC exchange-traded funds (ETFs) in January 2024. Institutional investors consider using BTC as part of their diversified asset allocation strategy. This approval could open up new avenues for crypto investment, attracting more traditional investors who have not yet entered the space. In addition, it is expected that after the approval of the BTC ETF, the ETH Fang ETF will further expand to provide more investment options in the cryptocurrency market.

2, ETH Cancun upgrade and token issuance boom

The ETH Cancun upgrade is scheduled for the first quarter of 2024 to further unlock the potential of the ETH and Tier 2 (L2) ecosystems. The upgrade is expected to improve the scalability and efficiency of ETH-based applications. With this enhancement, projects using zero-knowledge (ZK) L2 solutions are likely to experience a token issuance boom. The encryption technology implemented by the ZK L2 project ensures privacy and security while significantly reducing transaction costs and increasing transaction speeds. Many platforms are actively working on the ZK L2 solution and are expected to benefit from this upgrade.

3. The impact of the U.S. interest rate hike cycle on the cryptocurrency market

The US interest rate hike cycle is nearing its end, which has brought positive sentiment to the crypto market. Interest rates could be cut as early as May 2024, enhancing the appeal of BTC and other cryptocurrencies. Lower interest rates make alternative investments such as cryptocurrencies more attractive because they offer the potential for higher returns. Many platforms allow users to invest in cryptocurrencies at attractive cryptocurrency deposit rates, providing investors with the opportunity to capitalize on this trend.

4, Circle’s IPO and adoption of crypto stablecoins

Circle, the issuer of stablecoin USDC, is preparing for an initial public offering (IPO) in the first half of 2024. The move is expected to support the adoption and acceptance of crypto stablecoins. Due to their pegged nature, stablecoins offer more stable value than other cryptocurrencies. They are less volatile and are often used for day-to-day trading and as a store of value. New-age bills accept stablecoin payments, making it convenient for users to pay their bills with this digital asset.

5, BTC halving and increased scarcity

BTC will be available for 155 days, further increasing the scarcity of this digital asset. BTC halving occurs approximately every four years and halves the block reward received by miners. Historically, due to the increased scarcity of BTC, a decrease in supply has led to an increase in BTC prices. To illustrate this, let’s look at the previous halving:

• Prior to the 2012 halving event: BTC price was $12 per BTC
• After the 2012 halving event, BTC prices reached $260 per BTC
• Prior to the 2016 halving event: BTC price is $650 per BTC
• After the 2016 halving event, BTC prices soared to more than $20,000 BTC

6, FTX Case and Regulatory Clarity

The FTX case is at an advanced stage and facing restructuring. With the clarification of regulation, it is expected to attract new retail funds into the cryptocurrency market. Regulatory oversight is essential for investor protection and market stability. Increased regulatory transparency has given investors more confidence in investing in cryptocurrencies. Cryptocurrency trading platforms should comply with regulations to provide retail investors with safe trading options and ensure a safe and transparent environment for cryptocurrency investment.

7. Summary

The cryptocurrency market outlook for 2024 will feature several key events that could shape the future of the crypto space. The approval of BTC ETFs, the ETH upgrade in Cancun, the impact of U.S. interest rate cuts on the crypto market, Circle’s IPO, BTC halving, and regulatory clarity surrounding the FTX case are all factors to keep an eye on. By staying informed of these developments, you can take advantage of potential investment opportunities in the cryptocurrency market. Please do thorough research before making an investment decision, though.