After ending 2023 on a high, crypto investors will watch interest rates and an expected bitcoin ETF as they decide how to place their bets next year. The market will also look to the Federal Reserve’s next move and regulatory decisions in the United States.
2024 is set to be a significant year for the cryptocurrency industry, as it will see the arrival of several new digital assets and new regulatory developments. It could also be the year that finally ushers in mainstream acceptance for the space, with the arrival of ETFs and the introduction of Know Your Customer (KYC) protocols in decentralized finance.
It will be a pivotal year for regulators to assess the impact of recent policy changes and try to make sense of the crypto markets. In the United States, the Securities and Exchange Commission’s (SEC) upcoming decision on the first bitcoin ETF could be a significant turning point for the industry. Both BlackRock and Fidelity have applications for such funds pending with the SEC.
But the most anticipated development will likely be a spot ETF approved by the SEC, opening the door to broader institutional investment in cryptos. Analysts anticipate tens of billions of dollars in capital inflows if the ETF is approved.
Moreover, if the SEC approves a spot ETF in the first quarter of 2024, as many analysts believe will be the case, the Bitcoin price is expected to rally dramatically. In addition, the fourth bitcoin halving is scheduled for April or May and is generally followed by a bull run, as past events have shown.
Several other tailwinds are helping to drive the cryptocurrency market’s recovery in 2023, which has seen a surge in trading volumes and a return of investor confidence. For example, the Federal Reserve has indicated it will start cutting interest rates in March, which will help fuel demand for risk assets like cryptocurrencies.
In addition, the SEC is expected to finalize a series of rules and guidelines for cryptocurrencies and exchanges by the end of 2023, which will pave the way for further regulatory clarity in the sector.
It will also be a significant year for the crypto market, as it will mark the beginning of the Year of the Dragon, which is regarded as a lucky period for those born in this Chinese zodiac sign. According to astrological beliefs, those born in the Year of the Dragon must not offend Tai Sui, the God of Age, as he can cause some health issues and challenges for them. This will require them to pay extra attention to competition in the workplace and focus on their work-life balance. Also, they should be mindful of their diet and exercise and avoid smoking and alcohol as these activities will affect their life energy. However, some experts say that the effects of the Year of the Dragon will vary from one person to another.