4 Cryptocurrency Predictions for 2024
Here are four cryptocurrency predictions for 2024.
1. "Buy the rumor, sell the news" will be Bitcoin's theme in 2024
Bitcoin's surge in 2023 can be attributed to positive sentiment in U.S. financial markets, the expectation of a spot Bitcoin ETF approval, and the anticipation of Bitcoin's halving event in April 2024. However, with Bitcoin already surging on the rumor of these events, it's likely that 2024 will follow the "buy the rumor, sell the news" trend. Bitcoin's relevance is also diminishing as other projects gain more traction and utility.
Bitcoin's relevance is also diminishing as other projects gain more traction and utility.
2. The ultra-popular "dog" coins will continue to underperform
Dogecoin and Shiba Inu, known as "dog" coins, gained modest returns in 2023 but significantly trailed Bitcoin. The core issue with these payment coins is their lack of differentiation and real-world utility compared to other digital currencies. Usage data shows that businesses are reluctant to accept these meme coins due to their volatility. Additionally, payment coins that experience enormous price rallies tend to see significant value declines in subsequent years, making them poor long-term investments.
Investors should expect another underperforming year for Dogecoin and Shiba Inu.
3. The cryptocurrency market fails to decouple from Wall Street
Contrary to expectations, the performance of the cryptocurrency market will continue to be influenced by the stock market. Factors such as access to capital and investor sentiment play a crucial role in both markets. With tightening lending standards and a contracting U.S. money supply, it could be challenging for digital currencies to decouple from the stock market in 2024.
Investors should not expect digital currencies to be completely detached from the performance of Wall Street.
4. The crypto space will experience another major failure
The crypto market is no stranger to failures and scandals. Looking ahead, another major failure is likely to occur in 2024. In recent years, we've witnessed collapses of stablecoins and cases of fraud within crypto exchanges. The lack of oversight and potential for manipulation in the crypto space make it a breeding ground for failures. Investors should remain cautious and prepared for unexpected events.
The downfall of Tether, the largest stablecoin, could be a significant event in 2024.
