Latest Cryptocurrency News

It has been a roller coaster journey for the crypto industry this past year. From crypto exchange fraud cases to an extremely bearish market, the market experiences raging challenges but still stands strong with a total market cap of  $1.17 trillion. Additionally, there are still over 300 million people actively using and trading cryptocurrencies. 

While the past year had remarkable crypto trends, 2024 also promises exciting adventures for traders, investors, and anyone looking to get into the crypto currency space.

We'll be looking at some of the biggest news rocking the cryptocurrency world today, and trends to watch out for in 2024. 

What is the Current State of the Cryptocurrency Market? 

Bitcoin closed the year on a strong note with a 12.6% gain. It reached new 52-week highs above $44,700 in December, boasting an impressive 156% annual increase, and marking its most successful performance since 2020. This price impact was mostly due to the positive sentiments regarding potential spot Bitcoin ETF approvals which are already in discussion. 

Ethereum (ETH) also witnessed notable growth, with prices rising by 15.7% in December, culminating in a year-end value of $2,353. Ethereum's yearly performance showcased a substantial 91% increase.

The year 2023 also witnessed a decrease in inflation, which led to the resurgence of cryptocurrencies and other risk assets. Altcoins like Solana (SOL) and Avalanche (AVAX) were top performers. 

While the global cryptocurrency market's total market capitalization reached a peak of over $2.8 trillion in November 2021, it experienced a dip below $800 million during the crypto winter of 2022. As the market rebounded, the total market capitalization recovered to $1.7 trillion entering 2024.

Crypto Market Trends To Watch in 2024

2024 promises to be an exciting year in the crypto community with many trends taking ground. We'll be looking at some of the major ones creating a buzz in the industry right now. They are spot bitcoin ETF approval,  AI coins, and the upcoming Bitcoin halving event. 

Spot Bitcoin ETF  

The crypto community is brimming with the latest approval of a series of spot bitcoin exchange-traded funds (ETFs). This development has been tagged by crypto analysts and experts as a revolutionary step in the crypto industry. Spot Bitcoin ETFs, which are the first of their kind promise a fair and regulated opportunity for both Wall Street and retail crypto investors. 

What is Spot Bitcoin ETF? 

A spot Bitcoin exchange-traded fund (ETF) serves as an investment instrument, that provides 

everyday investor access to Bitcoin's price fluctuations within their standard brokerage accounts. 

Unlike Bitcoin futures ETFs, a spot Bitcoin ETF directly invests in bitcoins as the underlying asset, which makes it stand out from other ETFs that are based on derivative contracts tied to Bitcoin's price. 

The process involves purchasing bitcoins from other holders or authorized cryptocurrency exchanges and then storing them in a digital vault managed by registered custodians. After that, shares are then issued based on the corresponding to the number of bitcoins held. 

These ETF shares go on to be traded on traditional stock exchanges, allowing investors to gain access to Bitcoin's price movements in a regulated and secure manner. The ETF occasionally rebalances its holdings to align with the prevailing market conditions.

Impact on Bitcoin's Price

The introduction of a spot Bitcoin ETF is expected to exert a substantial influence on Bitcoin's price. This event will likely heighten the accessibility and liquidity of this asset, which in turn increases demand. Bitcoin's finite supply coupled with the increased demand is anticipated to push the prices of this asset upward. 

Many forecasts project that Bitcoin's price upon the approval of the ETFs may range between $42,000 and $100,000. There may also be a potential supply shortage as demand could intensify. Nevertheless, SEC regulatory oversight regarding this situation is expected to instill investor confidence and foster wider adoption. 

Bitcoin Halving

The next Bitcoin halving event is speculated to occur in April 2024. It is an occurrence that halves the rewards paid to miners for each added block of transactions on the blockchain. These halving events take place every 210,000 blocks which historically served as a bullish catalyst for Bitcoin prices.

While Bitcoin halving primarily affects Bitcoin miners, the event carries implications for BTC investors, and could also influence market sentiment" a vital factor for market shifts. 

To gauge the impact of the upcoming halving events, let's take a look at how past occurrences affected the value of Bitcoin. The first Bitcoin halving which happened in 2012 had a negligible impact on the price of Bitcoin as cryptocurrency was still in the era before its widespread adoption. Contrastingly, the second halving in 2016 witnessed Bitcoin's value surge from $650 to $758. Following the next halving event which took place in  May 2020, Bitcoin also experienced an increase from $8,821 to $10,943. 

As Bitcoin enthusiasts and investors await the April 2024 halving, the crypto community remains vigilant, acknowledging the event's historical impact while staying attuned to evolving market dynamics and potential shifts in Bitcoin's value.

AI Coins 

AI coins or AI tokens are gaining widespread popularity in the crypto community and in 2024, they are expected to gain more momentum. These are tokens developed to fuel AI-based applications and services. Beyond that, they are used to improve scalability, security, and user experiences within blockchain networks. AI has such vast applications in the crypto world and as the year unfolds, the crypto community gets to tap into these possibilities. 

Conclusion 

The cryptocurrency space is ever evolving with various impactful trends on the horizon. From the potential approval of spot Bitcoin ETFs to the anticipation of the next Bitcoin halving event, investors are navigating exciting developments. The rise of AI coins further shows the innovative changes that are taking effect in the industry. As we move forward into 2024, the crypto market promises continued adventure while offering both challenges and opportunities to investors. Stay tuned for the latest updates and insights into the fascinating world of cryptocurrency.