2024 End-Year Crypto Outlook
Revisiting the Game-Changers for Crypto
Topics discussed in the study:
This is a study created by BITmarkets’ team for the benefit of its wide community of clients, investors, traders and experts.
Dear valued clients,
We hope this message finds you well and thriving in a year of dynamic shifts within the cryptocurrency landscape. As we have approached the midpoint of 2024, we at BITmarkets are delighted to provide a detailed exposition of the major developments and revelations we have witnessed thus far, and to outline our anticipations for the remainder of the year.
The year 2024 began on a high note, bolstered by significant regulatory milestones, notably the U.S. approval of spot Bitcoin ETFs. This has driven significant inflows and complemented the consistently robust performance in the DeFi sector. The token sale market has also witnessed a resurgence, indicating strong investor interest in new crypto initiatives.
By March, the market had soared, with total market capitalization catapulting. This has sent Bitcoin to new record highs, which highlighted growing confidence in decentralized assets. After April’s cooling period, which allowed markets to stabilize, crypto participants witnessed price revitalizations in May after the SEC approved eight spot Ethereum ETFs, which signals that the maturing crypto market is embracing broader institutional participation.
Looking ahead, the rest of 2024 holds significant potential for Bitcoin and the wider cryptocurrency market. Following the highly anticipated Bitcoin halving event in April, the world’s largest cryptocurrency remained sturdy, and history suggests that Bitcoin is set to prosper further and thus, it is poised to keep representing the go-to digital asset for wealth preservation and growth.
The BITmarkets team is excited to share this end-year outlook to present the developments and revelations witnessed in the first half of 2024 in more detail, and to also lay the projections for what’s to come for this opportunity-packed realm.
We remain dedicated to providing you with strategic insights to navigate these changes effectively, and we thank you for your continued trust and partnership.
Ali Daylami
Head of Data Analytics
2024: The Year of Bitcoin’s Bright Shine
Bitcoin’s significant progress and resilience in the first half of 2024 underscores its potential for substantial growth and its role as the transformative force of the crypto market.
Bitcoin started the year strong, with high daily transaction volumes and significant institutional interest. Bitcoin is becoming increasingly viewed as a safe haven asset, demonstrating stability higher than many S&P 500 stocks, which evidences its role as a reliable store of value.
Bitcoin’s total value locked (TVL) continued to rise, driven by high accumulation rates from both large holders and small-time investors. Corporations like MicroStrategy continued to pile BTC, and the number of Bitcoin addresses, both small and large, increased significantly, indicating widespread adoption and confidence in the market.
March was the month where Bitcoin propelled to new all-time highs, hand-in-hand with the success of Bitcoin ETFs, evident as investment inflows reached $1 billion by the end of the month. Bitcoin exchange-traded products held over 1 million BTC, reflecting significant institutional investment and acceptance. This period saw a 19-day streak of inflows, which ended in mid-June.
In April, Bitcoin’s price approached its all-time highs, driven by increasing institutional adoption and the highly awaited halving event finally taking place, which reduced block rewards from 6.25 BTC to 3.125 BTC, and boosted market sentiment. Unlike previous halving events, Bitcoin’s price did not exhibit major bearish structures, maintaining a bullish outlook.
Bitcoin neared its all-time peaks in May, and the high traction generated by Bitcoin ETFs continued despite a price correction. The market saw a growing number of BTC addresses, both small-time and large, and Bitcoin whales continued to hold BTC. This accumulation and the increasing TVL indicated that a significant price breakout might be on the horizon.
Bitcoin-based NFTs performed exceptionally well, surpassing $4 billion in early June. This sector’s growth highlighted Bitcoin’s expanding use case beyond a store of value. Additionally, Bitcoin reached 1 billion transactions, showcasing its active use and transaction capability.
Bitcoin’s market sentiment remained positive, with analysts predicting further growth. The successful introduction of spot Bitcoin ETFs set a precedent for Ethereum ETFs, which could further boost crypto prices through increased acceptance and activity.
TOP 10 Game-Changers for Crypto Going Into 2025
Bitcoin ETFs: A Blockbuster Success
By providing regulated and accessible investment vehicles, Bitcoin exchange-traded funds have driven substantial institutional and retail participation, enhancing Bitcoin’s role as a mainstream financial asset.
The SEC approved several spot Bitcoin ETFs on January 10, 2024, allowing shares in Bitcoin holding trusts to be traded on SEC-regulated exchanges, significantly increasing accessibility for retail investors. Major firms such as BlackRock, Fidelity, and Grayscale launched their ETFs.
Following these approvals, Bitcoin experienced substantial market activity. Analysts from Standard Chartered predicted that the introduction of spot Bitcoin ETFs would drive BTC prices up by 165% by the end of 2024, potentially reaching $100,000.
Bitcoin reserves held by miners and exchanges dropped significantly, contributing to increased scarcity. The approval of Bitcoin ETFs was seen as a catalyst for this trend, as miners began hoarding more BTC in anticipation of higher future prices.
The Bitcoin halving event in April 2024, which reduced block rewards from 6.25 BTC to 3.125 BTC, further heightened market excitement. Historically, such events have led to significant price rallies due to the reduced supply of new Bitcoin entering the market.
The performance of newly launched Bitcoin ETFs showed promising results, with significant inflows and increased trading volumes. Analysts projected that these ETFs could grow the market to a staggering $100 billion over time.
Bitcoin ETFs continued to drive institutional adoption. The year 2024 could be a pivotal year for institutional investment in Bitcoin, bringing more stability and long-term growth to the cryptocurrency market.
By July 2024, ETF trading volumes reached $7.6 billion daily. Analysts continued to predict significant price gains for Bitcoin, driven by ongoing institutional adoption and reduced supply. These developments underscore the transformative impact of Bitcoin ETFs on the cryptocurrency market.
About BITmarkets
‘Crypto made simple’ is more than a slogan. It represents BITmarkets’ ongoing commitment towards enhancing the crypto trading experience for our community of traders by making crypto trading simple, safe and secure.
BITmarkets is a cryptocurrency exchange which offers 24/7 support in 15 languages. Traders can engage in trading more than 200 cryptocurrencies, as well as gain access to daily market updates and diverse educational materials.
Learn more about our services by visiting BITmarkets.com
Catch up on the latest market news & revelations via BITmarkets.News
Enhance your crypto knowledge by exploring BITmarkets.Academy
Lightning-fast
transaction speed
24/7 support
in over 15 languages
200+ cryptocurrencies
available to trade
99%
of funds in cold storage
© 2024 BITmarkets. All rights reserved.
Crypto assets, as unregulated, decentralised and highly volatile assets, entail substantial risks, and you may lose all invested capital.
Bibliography
Aka, A. (2024). Charles Hoskinson Predicts Remarkable Growth for Cardano (ADA) in 2024. Time Tabloid. Available at: https://timestabloid.com/charles-hoskinson-predicts-remarkable-growth-for-cardano-in-2024/
Altcoin Buzz. (2024). Sui Enters Top 10 Blockchains with DEX Volume Surge. Available at: https://www.altcoinbuzz.io/cryptocurrency-news/sui-enters-top-10-blockchains-with-dex-volume-surge/
Ashraf, A. (2024). Bitcoin Miner Marathon Mined $15M Worth Kaspa Tokens to Diversify Revenue. CoinDesk. Available at: https://www.coindesk.com/business/2024/06/26/bitcoin-miner-marathon-mined-15m-kaspa-tokens-to-diversify-revenue/
