What Does 2024 Have in Store for Crypto?

There is little doubt that 2023 was a red-letter year for cryptocurrencies in many ways. From the downfall of FTX to rumours regarding future governmental regulations and the increased adoption of crypto payments throughout the e-commerce sector, the crypto marketplace gained a fair share of attention across the boards.

Each year, as the market for digital assets matures, more businesses, venture capitalists and retail investors start to pay attention to it.

So, what might 2024 have to offer?

Although no one possesses the proverbial "crystal ball" in terms of market movements, it is still possible to draw some broad conclusions as well as to appreciate what these implications could signify for institutional-level traders.

Let's see what the experts have to say.

The Use of Artificial Intelligence

This one should be an obvious choice, as ChatGPT introduced the world to LLMs and AI tools; you can be sure that these two major tech trends will clash in a big way.

The presence of artificial intelligence (AI) has actually been associated with online trading for some time. Believe it or not, the principles of algorithmic trading can trace their roots back to the 1970s. The major difference is that these systems have not advanced to the point where they are becoming available to the average investor. As a result, crypto trading online is predicted to become even "smarter".

It still needs to be emphasised that AI is not set to completely remove humans from the equation. These software programs simply represent another "string on the bow" in terms of technical instruments that can be used to gauge the movement of the cryptocurrency markets more accurately.

However, we should never underestimate human laziness and overblown promises of automation; this trend will definitely see a new type of passive trader hit the market. Artificial intelligence could usher in an entirely new type of investor who relies as much upon algorithms as instinct and real-world experience.

Even More Altcoins?

Some have classified 2023 as the "year of the altcoin" due to the rise in popularity of these one-off tokens. Whether used as NFTs or as a means to generate capital for a startup project, altcoins have generated a fair amount of interest. Some feel that 2024 could witness yet another round of proliferation.

The only real question involves whether or not these tokens will possess any intrinsic value or if they represent nothing more than clever pet projects. Either way, the chances are high that traders will continue to be bombarded with a virtual alphabet soup of altcoins in the coming year.

We've already seen an explosion of new altcoins with the rise of Bitcoin Ordinals and its various token standards, while second-layer solutions and new rollup technologies for scaling will indeed encourage new altcoin creation.

Another trend coming out of the Ordinals space is inscriptions, which might have started on Bitcoin, but has moved to other EVM chains; ETHscriptions, for example, have seen some uptake on Ethereum, while other itertions are showing up on chains like Solana. The ability to inject data into block space has proven popular with NFT holders, and this method of asset creation will get a lot of attention in 2024.

The Looming Spectre of Governmental Regulation

It is now important to discuss what can only be called the elephant in the room. For some time, analysts have been discussing the possibility of some type of governmental intervention throughout the crypto marketplace.

To put this into context, we have already seen organisations such as the Securities and Exchange Commission (SEC) enter into the debate involving the exact definition of major tokens such as Bitcoin and Ethereum.

The chances are likewise high that 2024 will at least be partially defined as the first year when governments begin to take steps toward reining in exchange platforms such as Binance (a hot topic at the moment).

There are two ways in which such potential actions can be taken. Some will view governmental intervention as a direct violation of the decentralised nature of the cryptocurrency ecosystem. Others are likely to welcome these moves with open arms, as they could prevent excessive levels of volatility and provide an additional level of transparency.

Since the SEC has finally approved a Bitcoin spot ETF, the ruling has created a bullish narrative in cryptocurrency that other tokens will also receive ETF approval.

While Bitcoin stands on its own as a digital commodity and other tokens are still being debated on being a security or not, we will simply have to wait and see how the SEC rules.

An Influx of Younger Traders

Cryptocurrencies have gained an impressive degree of popularity when referring to the younger generation of traders; particularly those who view these assets as a means to enjoy short-term profits. This trend is likely to gain momentum throughout 2024. The good news is that such a situation will result in even more market liquidity. However, new investors are still likely to face a steep learning curve.

From understanding the intricacies of the blockchain to appreciating the value of tools such as a pip calculator and a candlestick chart, not all traders will "make the grade".

Others will realise that the cryptocurrency markets are rather complicated and require a fair amount of time to become accustomed to. However, entry-level traders should nonetheless begin to proliferate in the coming months.

A Year to Remember

Whether referring to the increasing presence of cryptocurrencies within the world of e-commerce or the role that governmental organisations may soon begin to play, 2024 will certainly be an interesting year.

This is why larger institutional trading firms are keeping a close eye on the latest news so that their clients can remain one step ahead. From any perspective, cryptocurrencies are here to stay, and their massive global presence will continue to be felt.

Contact us

If you would like to know more about digital assets or would like to market your digital asset company or how to set it up for your business, then don’t be shy. We’re happy to assist; simply contact us

Are you looking to promote your business?

Finance business owners can create their free business listings on the market. The more information you provide about your business, the easier it will be for your customers to find you online. Registering with nichemarket is easy; all you will need to do is head over to our sign-up form and follow the instructions.

If you require a more detailed guide on how to create your profile or your listing, then we highly recommend you check out the following articles. 

• How to create a nichemarketer profile 
• How to create a nichemarket business listing 

Recommended reading

If you enjoyed this post and have a little extra time to dive deeper down the rabbit hole, why not check out the following posts on cryptocurrency and blockchain?

• Why Blockchain and Cryptocurrency Is The Future Of Money
• 24 Ways To Earn Cryptocurrency
• How To Pay Tax On Cryptocurrency In South Africa
• How To Buy Bitcoin In South Africa
• Why Does Your Bitcoin Wallet Address Keep Changing?
• How To Tokenise Your Art & Sell It For Cryptocurrency

Disclaimer: This article should not be taken as, and is not intended to provide any investment advice and is for educational purposes only. As of the time of posting the writers may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency, as all investments contain risk.

Tags: Cryptocurrency, Crypto, Digital Assets , Guest Post