Top Crypto Predictions to Watch Out For in 2024 | Simplilearn

Crypto Prediction #1: Heading for a Crypto Crash or an Exciting Climb?

Cryptocurrency prices could fall further in 2022. They leaped to a record high of almost $69,000 in November, but they are now below $50,000, down nearly 30  percent from its high. Carol Alexander, a Sussex University professor of finance, expects Bitcoin to plummet to a low of $10,000 in 2022, which would erase most of its gains in the past year and a half.

Others don’t see a crash in 2022. Yuya Hasegawa, a crypto market analyst at Japanese digital asset exchange Bitbank, believes the most significant risk factor is [quantitative tapering] by the Fed. He thinks it has been decided and is probably priced in. 

Sayantani Sanyal reported that many factors point to higher Bitcoin prices, namely greater acceptance by businesses in higher demand from Bitcoin ETFs. In Analytics Insight, Sanyal says that market analysts predict that Bitcoin could hit USD $100,000 by the end of 2024, and others say it can climb to the mark in the first quarter of 2022. Others write that Bitcoin won’t reach more than USD $70,000 by the end of 2022.

In short, crypto predictions are all over the place. 

Crypto Prediction #2: A Lot More Investors Will Adopt Bitcoin 

Crypto prediction: According to The Ascent, Ric Edelman, founder of the Digital Assets Council of Financial Professionals, predicts that more than 500 million people worldwide will own Bitcoin by the end of 2022. CoinTelegraph, BlockFi co-founder Flori Marquez agrees, crediting regulatory clarity and improved understanding of the industry for helping drive greater adoption. 

Crypto Prediction #3: The First Spot Bitcoin ETF Could Get Approved 

Some crypto investors predict that the first spot Bitcoin exchange-traded fund (ETF) in the United States could be approved this year, giving investors direct exposure to the cryptocurrency itself. The Securities and Exchange Commission allowed the launch of ProShares’ Bitcoin Strategy ETF last year, but that just tracks Bitcoin futures contracts. However, because the market is now large and mature enough to support it, analysts believe a Bitcoin Spot ETF will be approved.

Crypto Prediction #4: Moving Toward Decentralized Finance (DeFi)

Emerging crypto developments such as decentralized finance (DeFi) and decentralized autonomous organizations (DAOs) are “likely to be the highest growth areas of crypto,” believes Bryan Gross, network steward at crypto platform ICHI. DeFi aims to recreate traditional financial products without middlemen, while DAOs could be considered a new internet community. Deposits into DeFi services surpassed $200 billion in 2021, and demand is expected to grow in 2022.

Carol Alexander said that investors looking to make gains in smaller areas of crypto will want to watch Ethereum, Solana, Polkadot, and Cardano coins in 2022.

CNBC reported that DeFi is part of a broader trend called Web3. Supporters of Web3 assert that online platforms are under the control of a few companies, such as Amazon, Apple, Alphabet, and Facebook’s parent company Meta. Web3 calls for a new, decentralized iteration of the internet incorporating blockchain and non fungible tokens. However, entrepreneurs such as Elon Musk and Jack Dorsey remain skeptical.

Crypto Prediction #5: Regulators Have Their Eye on Cryptocurrency 

Cryptocurrency regulation is expected to be a key issue in 2022. Vijay Ayyar, vice president of corporate development and global expansion at crypto exchange Luno, predicts 2022 will be a big year on the regulatory front. Ayyar told CNBC that he expects to see some clarification on the legal “gray zone” of cryptocurrencies other than Bitcoin and Ethereum. Another area of regulator interest is likely to be stablecoins, which are tokens whose value is tied to the price of assets such as the U.S. dollar. Tether, the world’s biggest stablecoin, appears controversial over whether it has enough assets in its reserves to justify being tied to the dollar.

Crypto Prediction #6: Bitcoin Will either Outperform or Underperform the S and P 500

Even with coronavirus’ threat to the global economy, both Bitcoin and the benchmark index showed impressive gains in 2021: Bitcoin vaulted 66percent and the S and P 500 climbed around 27percent. 

Arcane Research said that Bitcoin has performed like a risk-on asset, and they predict it will amplify the behavior of the stock market. If the stock market increases in 2022, Bitcoin will likely outperform, the firm said. But if the stock market has a red year, Bitcoin will likely underperform.

Crypto Prediction #7: Ether Will Outperform Bitcoin Again

Ether outperformed Bitcoin in 2021, gaining 418 percent compared to 66 percent for Bitcoin. Analysts believe either will continue to do well because of the surge in NFT sales volumes. Most of these tokens still run on the ethereum blockchain. 

Crypto Prediction #8: Most meme coins will disappear

Last year, a Dogecoin spinoff Shiba Inu climbed 44,540,000 percent. Squid, a coin named for the television drama “Squid Game,” jumped more than 75,000 percent in less than a week — only to disappear soon after. 

Crypto Prediction #9: USD Coin Will Hurdle Tether as Biggest Stablecoin

Tether has held on to its reign as the largest Stablecoin by cryptocurrency valuation. But it could be knocked off its perch once USD Coin decides to join the lending wave.

Crypto Prediction #10: VIX Spikes Impact Bitcoin Performance

While the stock market performed well in 2021, Arcane Research said, “Fear in the broad financial markets directly affected Bitcoin’s performance.”

Spikes in the Cboe Volatility Index, or VIX, went in step with Bitcoin sell-offs. Arcane Research said market difficulties in 2022 could have repercussions for Bitcoin’s short-term price trajectory.

Past Performance of the Crypto Market Suggests 2024 Will Be a Good Year

The crypto market has been on a roller coaster in the past few years, with prices rising and falling quickly. Despite the volatility, however, it is undeniable that the crypto industry has shown tremendous growth in the past few years. Industry professionals are optimistic that this trend will continue into 2024, as past performance of crypto markets suggests that this will be a good year for virtual currencies. This bodes well for investors who have already been involved in the crypto markets and those who are just getting started.

Analysts and market researchers have studied the performance of the cryptocurrency market since its inception and have concluded that the market is showing steady growth. This continued growth has led many to anticipate that 2024 will be a good year for the crypto industry as confidence in the technology increases and more businesses decide to adopt it. As more companies adopt blockchain technology, the need for skilled professionals to work in the sector will increase. This will create more job opportunities, which could foster…