The cryptocurrency market in 2024 has witnessed remarkable transformations, as digital currencies have returned to the forefront of financial interest after a period of sharp volatility in the past two years. The most notable of these transformations is the revival of major currencies such as Bitcoin and Ethereum, as they have maintained their position despite regulatory pressures and price fluctuations.
Highlights of 2024:
1. Global economic recovery: With the effects of global inflation subsiding and the pressure on financial markets easing, investorsâ appetite for digital assets has returned. We saw an improvement in demand for Bitcoin, which returned to levels close to $40,000 by mid-year, boosting confidence in the market.
2. Laws and regulations: Many countries have continued to improve their regulatory frameworks for cryptocurrencies. For example, the European Union has begun implementing a set of laws to regulate cryptocurrency trading and protect investors, while the United States has witnessed controversy over the role of the Securities and Exchange Commission in monitoring this market.
3. Institutional Adoption: We have seen an increase in the number of financial institutions adding cryptocurrencies to their portfolios. This institutional shift has enhanced market stability and helped create a bridge between traditional finance and cryptocurrencies.
Expectations for the next stage:
1. Continued gradual rise: Bitcoin and major currencies are expected to continue on an upward trajectory, especially with improved legislation and increased institutional adoption. Some estimates suggest that Bitcoin could cross the $50,000 barrier by the end of 2024.
2. Altcoins: Along with the major currencies, we may see significant growth in some altcoins such as Solana and Polygon, as new infrastructures are developed that facilitate faster and cheaper trading operations.
3. New technologies: The development of decentralized technology infrastructure will have a significant impact in the coming period. For example, decentralized finance (DeFi) and smart contracts will play an increasing role in improving the services of the traditional financial sector, which will boost demand for some currencies linked to these technologies.
4. Regulatory challenges: Despite the optimism, challenges remain in some major markets. Cryptocurrencies are expected to struggle to navigate new regulations in markets such as China and India, which could slow their spread in those countries.
It is clear that cryptocurrencies are heading towards greater stability in 2024 compared to previous years.
The continued growth in institutional adoption and growth-friendly legislation may help boost this market. However, there is no denying that challenges remain, especially in terms of regulation and the need to provide better and safer infrastructure, not to mention the current events that the world is going through.
