What to Expect and How to Prepare
Crypto enthusiasts are eagerly anticipating the next major bull run, which could see the prices of Bitcoin and other cryptocurrencies soar to new heights. But what are the factors that could trigger this rally, and how can you position yourself to benefit from it? In this blog post, we will explore some of the key drivers and trends that could shape the crypto market in 2024, and offer some tips on how to prepare for the upcoming bull run.
## The Bitcoin Halving Event
One of the most important events that could spark a crypto bull run in 2024 is the Bitcoin halving, which is expected to occur in May 2024. This is when the reward for mining a new block of Bitcoin will be reduced by 50%, from 6.25 BTC to 3.125 BTC. This will reduce the supply of new Bitcoins entering the market, while increasing the scarcity and demand for the existing ones.
Historically, Bitcoin halvings have been followed by significant price increases, as the market adjusts to the lower inflation rate and higher scarcity of the leading cryptocurrency. For example, after the first halving in 2012, Bitcoin reached a new all-time high of $1,163 in 2013, a 9,566% increase from its pre-halving price of $12. Similarly, after the second halving in 2016, Bitcoin reached a new all-time high of $19,783 in 2017, a 2,836% increase from its pre-halving price of $674. And after the third halving in 2020, Bitcoin reached a new all-time high of $69,000 in 2021, a 343% increase from its pre-halving price of $15,600.
Based on these historical patterns, some analysts predict that Bitcoin could reach a new all-time high of over $200,000 in 2024, following the fourth halving. This would represent a 632% increase from its current price of $27,669.84¹. Of course, past performance is not a guarantee of future results, and there are many other factors that could influence the price of Bitcoin. However, the halving event is certainly one of the most anticipated and influential events in the crypto calendar, and one that could have a positive impact on the entire crypto market.
## The Growth of DeFi and NFTs
Another factor that could fuel a crypto bull run in 2024 is the continued growth and innovation of decentralized finance (DeFi) and non-fungible tokens (NFTs). These are two of the most exciting and disruptive sectors in the crypto space, offering new ways to create, exchange, and store value on the blockchain.
DeFi is a term that refers to a range of financial services and applications that are built on decentralized platforms, such as Ethereum, Binance Smart Chain, Solana, and others. These services include lending, borrowing, trading, investing, insurance, and more, and they aim to provide more accessible, transparent, and efficient alternatives to traditional financial systems. DeFi has exploded in popularity in the past few years, with the total value locked (TVL) in DeFi protocols reaching over $200 billion in 2023², a 100-fold increase from its TVL of $2 billion in 2020³.
NFTs are unique digital assets that represent ownership of various forms of digital or physical content, such as art, music, games, collectibles, and more. NFTs are created and traded on blockchain platforms, such as Ethereum, Flow, Tezos, and others, and they offer a way to verify the authenticity, provenance, and scarcity of digital content. NFTs have also seen a massive surge in popularity in the past few years, with the total sales volume of NFTs reaching over $10 billion in 2023⁴, a 1,000-fold increase from its sales volume of $10 million in 2020⁵.
Both DeFi and NFTs have the potential to revolutionize various industries and sectors, and create new opportunities and value for crypto users and creators. As these sectors continue to grow and innovate in 2024, they could attract more users, investors, and developers to the crypto space, and drive the demand and adoption of various cryptocurrencies. Moreover, they could also create positive network effects and synergies, as more DeFi and NFT platforms and protocols integrate and interoperate with each other, creating a more vibrant and diverse crypto ecosystem.
## The Regulatory Landscape
A third factor that could affect the crypto market in 2024 is the regulatory landscape, which could either hinder or support the growth and development of the crypto industry. As crypto becomes more mainstream and influential, it also attracts more attention and scrutiny from regulators and policymakers around the world. Depending on the stance and approach of different jurisdictions, this could have positive or negative implications for the crypto market.
On the positive side, some jurisdictions have adopted a more friendly and supportive attitude towards crypto, recognizing its potential and benefits, and providing clear and consistent rules and guidelines for crypto businesses and users. For example, in June 2023, the U.S. Securities and Exchange Commission (SEC) approved the first Bitcoin spot ETF, which allows investors to buy and sell Bitcoin directly through a regulated exchange-traded fund⁶. This was a major milestone for the crypto industry, as it opened the door for more institutional and retail investors to access and invest in Bitcoin, and boosted the legitimacy and credibility of the leading cryptocurrency. Similarly, in September 2023, El Salvador became the first country to adopt Bitcoin as legal tender, which means that citizens and businesses can use Bitcoin as a medium of exchange, store of value, and unit of account. This was another historic moment for the crypto industry, as it demonstrated the real-world use case and adoption of Bitcoin, and inspired other countries to consider similar moves.
On the negative side, some jurisdictions have adopted a more hostile and restrictive attitude towards crypto, fearing its risks and challenges, and imposing bans or limitations on crypto activities and operations. For example, in September 2022, China announced a sweeping crackdown on crypto, banning all forms of crypto transactions, mining, and trading, and shutting down all crypto-related platforms and services. This was a major blow for the crypto industry, as China was one of the largest and most influential markets for crypto, and the source of most of the global Bitcoin mining power. Similarly, in October 2023, India passed a bill that banned all private cryptocurrencies, except for those issued by the central bank, and imposed harsh penalties for anyone involved in crypto transactions or activities. This was another setback for the crypto industry, as India was one of the fastest-growing and most populous markets for crypto, and the home of many crypto startups and innovators.
As the crypto industry evolves and matures in 2024, the regulatory landscape will also change and adapt, and this could have a significant impact on the crypto market. Depending on the balance and direction of these regulatory developments, they could either create more barriers or opportunities for the crypto industry, and either dampen or boost the market sentiment and momentum.
## How to Prepare for the Crypto Bull Run 2024
Given these factors and trends, there is a strong case to be made for a crypto bull run in 2024, which could see the prices of Bitcoin and other cryptocurrencies reach new highs. However, this is not a certainty, and there are many uncertainties and risks involved in the crypto market. Therefore, it is important to be prepared and cautious, and follow some best practices and tips to navigate the crypto market in 2024. Here are some of them:
- Do your own research: Before investing in any cryptocurrency, it is essential to do your own research and due diligence, and understand the fundamentals, features, and risks of the project. Don't rely on hype, rumors, or FOMO, and don't invest more than you can afford to lose.
- Diversify your portfolio: To reduce your exposure and risk, it is advisable to diversify your portfolio and invest in a range of cryptocurrencies, across different sectors, platforms, and use cases. Don't put all your eggs in one basket, and don't chase after the latest trends or fads.
- Secure your assets: To protect your assets from hackers, scammers, or technical issues, it is crucial to secure your assets and use reliable and reputable platforms and services. Don't store your assets on exchanges or online wallets, and use hardware wallets or cold storage to keep your private keys offline and safe.
- Manage your emotions: To avoid making impulsive or irrational decisions, it is important to manage your emotions and have a clear and realistic strategy and plan. Don't let greed, fear, or panic influence your actions, and don't fall victim to market manipulation or volatility.
- Stay informed and updated: To keep up with the latest developments and trends in the crypto market, it is essential to stay informed and updated, and follow credible and trustworthy sources of information and analysis. Don't rely on outdated or inaccurate data, and don't ignore the signals and indicators of the market.
## Conclusion
The crypto market is one of the most dynamic and exciting markets in the world, and it offers tremendous opportunities and challenges for investors, traders, and enthusiasts. As we enter 2024, there are many factors and trends that could shape the crypto market, and potentially trigger a major bull run. However, there are also many uncertainties and risks involved, and it is important to be prepared and cautious. By following the tips and best practices outlined in this blog post, you can position yourself to benefit from the crypto bull run 2024