2023 has seen a host of consequential regulatory actions in the crypto industry, with prospects of breeding additional clarity on legislative issues in 2024. Meanwhile, the industry’s asset by market capitalisation ended the year at $42,000, distancing the shrills of the 2022 crypto winter. However, 2023 was also the year BTC began on a sorry $16.5k note.

Here’s exploring the prospects of the crypto market future in 2024, especially as the industry stands at the brink of crucial events like spot BTC exchange-traded funds (ETFs) approval, additional layers in alternative finance regulation, and Bitcoin halving.

The Potential Magical Effect of Spot BTC ETFs in 2023

Today, retail crypto investors can only buy, sell, or hold assets via ETFs that trade in cryptocurrency futures. Should the SEC approve a spot Bitcoin ETF, this category of investors can now access their assets without a Bitcoin wallet. 

Optimism around the approval has already helped boost BTC’s price. For instance, estimates from platforms like Bloomberg report that the global market for cryptocurrency could reach $100 billion over time. Meanwhile, similar reports predict digital assets could rise from $14 billion next year (if approved) to $39 billion by 2027 as the use of cryptocurrencies expands into areas such as gambling at Australian casino online.

However, there’s still significant uncertainty around the SEC’s verdict. There have been reports of multiple talks with intending ETF issuers, as applicants reportedly amending their plans to suit the regulator’s expectations.

Bitcoin Halving and Its Prospects for the Market

Bitcoin halving happens approximately every four years; the next one is scheduled for April. During this event, the rewards for Bitcoin miners are cut in half. They earn rewards for validating transactions and creating new blocks of Bitcoin. When they decrease, it indirectly influences the number of new bitcoins entering circulation. Reducing rewards makes mining more challenging since there is a fixed supply of just over 21 million bitcoins.

As a result, with the upcoming halving reducing the supply of new bitcoins and considering the inverse relationship between supply and price, it’s anticipated that cryptocurrency prices will likely increase. This is because a lower collection often correlates with higher prices.

Historically, analyses of the cryptocurrency market show that boom and bust cycles typically revolve around Bitcoin halving. This four-year cycle effectively reduces the number of new Bitcoins entering the network every ten minutes, contributing to the overall dynamics of the cryptocurrency market.

However, according to a report from the Grayscale Research Team, chances are pretty high that next year’s halving event could have more impact than they did in previous years – amid potential effects from a spot BTC ETF approval. That’s because the current distribution of BTC is held mainly by individuals and entities who tend to keep their assets longer and only occasionally use them for personal purposes, for example, entertainment in the poker industry.

According to the team, if these trends continue, they could increasingly boost the impact of economic indices like global policies, regulation, and other industry developments.

What If the BTC Doesn’t Get Approved Next Year?

Since the regulation on spot BTC ETFs could go either way – or some other way – one question many might be asking would be the future of digital assets next year, especially in light of BTC halving.

Phil Harvey, CEO of Sabre56, a leading digital asset management consultant, claims nothing to worry about. The cryptocurrency mining expert says the crypto mining sector is bound to maintain its current health status regardless of the outcome of spot BTC ETFs.

According to Harvey, the number of miners with direct access to power and state-of-the-art power generation facilities predicts a positive economic landscape for the industry. These portend a general overall positive outlook for current economic indices, which could lead to sustainable and healthy profit margins after the 2024 halving event.

Other Notable Cryptocurrency Market Forecasts

Ether outperformed BTC in 2021, adding 418% compared to BTC’s 66% increase by market capitalisation. Experts predict that Ethereum will likely continue to perform excellently due to the widespread increase in the sales of non-fungible tokens (NFTs). That’s understandable since most NFTs run on the Ethereum blockchain.

Meme coins have been rising and falling at unpredictable and alarming rates. That’s why some experts predict we may see much fewer meme coins in 2024. Shiba Inu, a Dogecoin brainchild, spiked by 44,540,000% in 2022, while Squid, a meme coin adapted after a TV show, ‘Squid Game,’ increased by over 230,000% in 2021.

However, Shiba Inu’s recent burn rate at a skyrocketing pace and Squid’s sudden practical disappearance less than a week after its momentous spike explain the omen surrounding the asset class in our cryptocurrency market analysis.

Per crypto regulations, 2023 has seen a widespread introduction of enforcement actions, as some of the industry’s most renowned names, Binance and Coinbase, faced lawsuits from the SEC or the Department of Justice. Changpeng Zhao was indicted for violating the Bank Secrecy Act, while Sam Bankman-Fried, erstwhile FTX CEO, was indicted for a crime.

These events, among many things, show that we can safely expect regulatory clampdowns and enforcement as the new normal for erring individuals or companies. However, one popular question many have surrounds regulatory clarity. Republican Senator Cynthia Lummis of Wyoming recently expressed optimism that the industry may find regulatory clarity in early 2024.

What to Expect in Summary

From the above analysis, some things industry experts, participants, and enthusiasts could expect going into 2014 in the crypto world include:

1. More people will be able to access Bitcoin without a wallet.
2. The value of Bitcoin and other significant crypto assets like Ethereum will likely increase.
3. Ethereum will solidify its place as the best-performing crypto asset in 2024.
4. Chances are there will be much fewer meme coins.
5. There is a massive possibility of regulatory clarity on cryptocurrencies in 2024.
6. Due to regulatory clarity, there will likely be an increased adoption of cryptocurrencies in 2024. This means crypto assets will be used more in industries like iGaming for online casinos and betting transactions. Other sectors will also adopt the assets.

Conclusion

As with online gaming sectors, esports, live sports, or even traditional financial services providers, competition in the cryptocurrency market among companies (and other participants) powers crypto trading activities and future trends.

However, we can expect policies that border around monetary tightening from governing banks globally to plummet, leading to generally positive outcomes for the crypto growth rate in 2024. BTC climbed to 154% in 2023 (by December 20), with prospects of surging further next year.

Summarily, the general outlook of the cryptocurrency industry portends an overall thriving rather than a fading in 2024 – with improved regulatory clarity, technical support, and Bitcoin halving being the leading promises the New Year holds.