The year 2024 began with Bitcoin (BTC) rising around 7%, breaking the $45,000 resistance and very close to the approval of the first BTC spot ETF in the US The year 2024 began with Bitcoin (BTC) rising around 7%, breaking the resistance of US$45,000 and very close to the approval of the first BTC spot ETF in the USA, a product that since 2013 has been touted as a major catalyst for a rise in the largest cryptocurrency on the market.
Analyzing the current scenario and how the crypto market is expected to behave during the year, Beto Fernandes, cryptocurrency analyst at Foxbit, said that it is impossible to point out that the recent rise in Bitcoin prices does not affect the prospects for the cryptocurrency market this year. .
According to him, unlike a simply euphoric movement, there are many fundamentals behind an optimistic feeling.
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To begin with, from the macroeconomic perspective, Fernandes states that analysts are increasingly betting that the Federal Reserve will cut interest rates as early as March of this year.
If that happens, the dollar will lose some of its strength, as will Treasury bond yields. As a consequence, cryptocurrencies tend to benefit from a greater risk appetite among investors.
"There is also a possibility that the United States Securities and Exchange Commission (SEC) will approve one of the spot Bitcoin ETFs in the early months of 2024. This is troubled terrain, as the SEC has repeatedly postponed an opinion on the products But the market is still optimistic about this movement, as the fund could intensify the participation of institutional investors in the crypto market," he said."
According to him, the Bitcoin halving is a major checkpoint in market cycles. Historically, the event usually signals the start of a bull-run. Thus, with the halving scheduled for April, the BTC accumulation movement is not only trending, but is already happening.
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"Considering the approach of the halving, Bitcoin will definitely be next year's flagship. There is a lot of expectation surrounding this event and how much Bitcoin can appreciate in the medium term. Furthermore, there are many important fundamentals revolving around of this specific cryptocurrency, which strengthens its dominance in investor preference," he said.
Promising coins for 2024
Fernandes indicated some currencies that he believes are promising for the year and the first crypto on the analyst's list is Bitcoin. Then the analyst points to Avalanche (AVAX).
"It has already been recording very significant gains in recent weeks, mainly after a partnership with JP Morgan. In this case, the blockchain responsible for issuing the token will help the North American bank in the tokenization and management of the company's assets. This partnership with An institutional player of this size, of course, not only generates hype around cryptocurrency, but also opens up the possibility for the solution to be adopted by other large companies", he said.
The list also includes MATIC (Polygon), which is undergoing a very robust update process, and interest in this cryptocurrency should continue for a long time to come. Basically, the update is facilitating the interoperability of its networks to accelerate and scale projects within the platform.
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To this end, the protocol even developed a new cryptocurrency, POL, which should replace the MATIC token in the next four years, according to documents released by Polygon. Whenever an important update like this happens, investors take advantage of the moment of change to follow the buying trend and network visibility.
The analyst closes his recommendations with Cosmos (ATOM), which is undergoing a very interesting update in terms of security. The update focuses on a type of "replicated security" that will allow Cosmos blockchain validators to verify transactions that occur on other networks connected to the protocol. This should not only bring fluidity and security to projects that use the platform, but it also tends to favor stakers, who can start receiving more fees, without leaving the blockchain.
Willian Ou, CEO of token.com, indicated Bitcoin and also said that investors should pay attention to memecoins, which have been a gateway for beginners to the cryptocurrency market, simply because they are easy to understand.
"With no real utility other than the value attributed by Internet communities, its rise and fall are determined by online trends," he said.
Diego Guareschi, CMO of Hathor Labs, said that 2024 will be the year of Tokenization of RWAs (Real World Assets)
“The asset tokenization scenario is developing very promisingly in Brazil. The Brazilian market's receptivity to the digitalization of assets is high.
Regulation with bodies such as the CVM and the Central Bank has been the key point in favoring the advancement of tokenization, although there is still a need for more clarity in the rules. As a result, the main financial institutions have already realized the opportunities that tokenization offers both in terms of additional revenue gains and cost reduction”, he comments.
Cássio Krupinsk, CEO of BLOCKBR, also bets on tokenization and said that with the growing adoption and support of important financial institutions, tokenization is paving the way for a future in which asset structuring will be more agile, accessible and profitable for everyone those involved.
"In Brazil, it is possible to further transform this market, taking advantage of its opportunities and reaching, in 2024, the mark of R$2.2 billion in tokenized assets. By making tokenization accessible and effective, autonomous agents and other entities are empowered to transcend traditional barriers towards a new horizon of possibilities", he stated.
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