#1 SPOT BITCOIN ETF
At least 13 firms, including BlackRock, WisdomTree, Valkyrie and others, are still awaiting the SEC's decision on proposals to launch spot-based Bitcoin ETFs.
But while many crypto investors believe that spot Bitcoin ETFs would open the door for institutional investors and be a bullish catalyst for the market, some critics are concerned about the potential negative implications of institutional money inflows.
The approval of Spot Bitcoin ETFs is likely to generate the biggest headlines in the cryptocurrency market in the first weeks of 2024, but there are also a few other key topics and catalysts to track this year.
#2 BITCOIN HALVING
Bitcoin halving is among the most significant events of the crypto industry for 2024.
Halving is expected in May 2024, and will reduce the reward paid to miners for each block excavated.
Halving happens every time an additional 210,000 blocks are added to the Bitcoin blockchain, and they have historically served as bullish catalysts for Bitcoin prices.
#3 CRYPTO REGULATION
The SEC and other regulators are expected to resume their courtroom battles against cryptocurrency publishers and exchanges in early 2024, and the justice system could provide U.S. crypto investors with some much-needed clarity on how digital assets should be classified.
The SEC is currently battling XRP's publisher, Ripple, in court over whether Ripple's sale of XRP to institutional investors was an unregistered sale of securities. The SEC also sued Coinbase, Binance and Kraken and accused them of being unregulated.
#4 CBDC
In 2024, more countries around the world could launch central bank digital currencies, digital versions of legal tender issued by a country's central bank.
The Bahamas, Jamaica and Nigeria have already launched CBDCs, and more than 100 additional countries are reportedly exploring the possibility of launching their own CBDCs.
#5 INTEREST RATES AND INFLATION
Crypto investors will also monitor the U.S. economy, especially inflation and interest rates.
One of the factors that led to strong performance in the cryptocurrency market in 2023 was the ability of the US Federal Reserve to reduce inflation without bringing the US economy into recession. If the Fed continues soft landing for the economy in 2024 and continues to cut interest rates, it could affect the growth of stocks, cryptocurrencies and other risky assets.
#6 ELECTIONS
In the coming year, we have the highest number of national elections in history (41% of the population with 42% of the world's GDP vote for the future economy).
Which of these key developments do you consider most relevant to the crypto industry?