This article provides a concise crypto market outlook for 2024. The crypto asset class has been characterized by speculation. While some have been blessed by crypto, it has become a subject matter others don’t want to hear or talk about. Despite the numerous mixed emotions inspired by this asset class, it is fair to say that crypto is here to stay. This statement can be corroborated by the sudden interest from institutional investors in the crypto space. Such big institutions as Blackrock, Ark Invest, Galaxy, etc. have filed for a spot Bitcoin ETF with the SEC, which finally approved it on January 10, 2024.
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Table of Contents
Prior to the approval of the SPOT Bitcoin ETF
While giving a crypto outlook for 2024, it is important to consider the events and atmosphere of the crypto space before the approval of the first Spot Bitcoin ETF in the United States. The narrative that the US SEC was going to approve a Spot Bitcoin ETF drove the price of bitcoin to levels not seen in the past two years. This is because the approval of a Spot Bitcoin ETF will signify the endorsement of the new asset class by regulatory bodies like the Securities and Exchange Commission (SEC). The approval will also bring about more exposure to crypto, where institutions will start marketing their Spot Bitcoin ETFs to their customers.
What is a Spot Bitcoin ETF?
The first event worthy of mention when giving a crypto outlook for 2024 is the Spot Bitcoin ETF. What is the Spot Bitcoin ETF, and why is it important? It should be noted that there has been approval of spot crypto etfs in other countries, such as Canada, Germany, and Switzerland. On January 10, 2024, the United States joined other 8 markets around the world that have allowed the operation of Spot crypto ETFs, bringing the total number to 9 at press time.
The Spot Bitcoin ETF simply refers to the process by which an approved custodian provides an underlying asset to be traded in a secure manner. That is, the ETF mirrors the price of Bitcoin on the crypto market and aids in investor exposure. This means that the ETF makes it easy for more people to invest in Bitcoin, which is believed to automatically drive up the price in the long run. The Spot Bitcoin ETF makes it easy for people who find it difficult to trade bitcoins directly on crypto exchanges. It removes the responsibility of security from the individual and hangs it on the neck of the ETF provider or custodian.
General Overview of Crypto in 2024
The crypto market outlook for 2024 is believed to be bullish. There are two major events that have supported this bullish sentiment. These two events are: 1. The approval of the Spot Bitcoin ETF by the US SEC; and 2. The next bitcoin halving. Just as the African weather is characterized by two seasons, namely, the dry and the rainy seasons, the cryptocurrency space is also characterized by two seasons, namely, the bearish season and the bullish season. The bearish season is characterized by downturns in prices, while the bullish season sends prices to the moon. Since the crypto market outlook for 2024 is bullish and the reasons have been given to be the approval of Spot Bitcoin ETF and the coming Bitcoin halving, it is important to explain these bullish catalysts. Since justice has been done to Spot Bitcoin ETF, what in the cryptosphere is Bitcoin halving?
What is Bitcoin Halving?
The term Bitcoin halving refers to the event that takes place every four years on the Bitcoin Network. During the halving, the reward miners receive for validating and adding new transactions to the Bitcoin blockchain is cut in half. The halving process has been programmed into the Bitcoin protocol to occur at the creation of the 210,000th block, or every four years. The mechanism mimics the scarcity or limited supply of precious metals like gold. Halving helps to control the limited supply of Bitcoin, and it also influences its value. From history, every year there is Bitcoin halving, which sends the price of the commodity to an all-time high (ATH). Since the crypto market outlook for 2024 is bullish, it is smart for an enthusiast to position himself or herself so as to enjoy the blessings of crypto. This leads us to the next segment of the article.
Positioning Yourself in the Bullrun
Like a popular saying goes, “the best time to buy is when there is blood on the street.” That is, the best time to buy crypto assets is when prices have hit rock bottom. In all honesty, only a few have the heart to buy when prices are tumbling. History has shown us over and over that those who profit big by investing in speculative assets bought these assets when others were fearful. A good example is Tolu Williams, who bought Solana at $8, a crypto asset that tumbled from over $200. While this was a perfect buy for him, others believed that Solana was done and would never recover. Fast-forward to 2024, and at press time, Solana is valued at $95. There are still numerous opportunities in the cryptosphere. This leads us to the next segment of the crypto market outlook for 2024.
A Brief Guide to Shitcoins and Bluechip Crypto Projects
Cryptocurrency is very volatile, and the investor is advised to invest what he or she can afford to lose. This is because there are numerous cryptocurrencies with no use cases that are regarded as shitcoins. These shitcoins have made many wealthy, and they have also contributed to the penury of others. As a smart investor who would like to make a quick buck in crypto in 2024, it is important to identify certain shitcoins launched based on certain narratives. For example, FINK, a memecoin launched based on the Spot Bitcoin ETF narrative, has seen a 10x increase since its launch. Although it has drastically experienced a downturn in price, the smart investor who entered early would have taken profits. Although memecoins or shitcoins are dangerous based on their narratives, one can spot which one will do well.
Spotting Shitcoins that will do well in a Bullrun
It is important to do research before jumping into or investing in any project. In bull runs, shitcoins have been seen to experience 10x to 100x, but how can one spot shitcoins that will do well?
Is the ownership of Shitcoin revoked?
In a situation where the ownership of the shitcoin is revoked, it is a good sign that the shitcoin can make you rich.
Is the team doxxed?
That is, do you know the team behind the project? In situations where the team behind a project is not known, it signifies a red flag, and the project is mostly abandoned from experience.
What is tokenomics like?
That is, how many of the shitcoins are in circulation? What is the market capitalization of the shitcoin? If you multiply the value of the shitcoin by the circulating supply, will it give you the total market cap? If not, the tokenomics are bad, and that’s a huge red flag.
How is the promotion of the shitcoin going?
It is a known fact that promotion will make more people aware of the project. In a case where promotion is low, it signifies danger. Run!
BlueChip Crypto Project to Invest in 2024
A peep into the crypto market outlook for 2024 reveals certain blue-chip crypto projects one could invest in for gains in 2024. These blue-chip projects have been seen to be hard to fail. They are characterized by market capitalization. First on the list is Bitcoin, with a market capitalization of $838 billion USD at press time. Others, like BNB, Binance’s native token, are also regarded as blue-chip projects because of their use cases. XRP, Ethereum, Solana, and the top 20 cryptocurrencies based on market capitalization are all blue-chip projects. Although it is difficult for a bluechip project to rise by 10x to 100x, they are reliable when it comes to price fluctuations and recovery, unlike shitcoins, which may never recover when prices fall.
In conclusion, almost any crypto project will have a good time during a bull market. The investor is advised to get in at low prices and sell when prices rise. This concludes my crypto market outlook for 2024.