2024 Crypto Forecast: Insights and Strategies to Stay Ahead of the Market

After the eventful 2023 in crypto and Web3 , it is only natural to be curious about how this thrilling story will continue. While no one can foretell you with absolute certainty what is going to happen in the following year, our analysis aims to provide a grounded and insightful perspective on what 2024 might hold for crypto enthusiasts.

Here are the main trends, narratives, and developments in crypto and Web3 expected to take place in 2024.

Key Insights:

• The 2024 Bitcoin halving event is set to reduce mining rewards, potentially creating a supply shock. This event historically leads to increased market volatility.
• The institutionalization of crypto, particularly with the anticipated approval of Bitcoin spot ETFs, marks a significant shift towards mainstream acceptance.
• Regulatory clarity, especially in the U.S. and EU, is expected to deploy more defined guidelines that could lead to greater institutional involvement and a more stable market environment.
• Significant development trends, expected to play a role in 2024 are Tokenization, Decentralized Identity, and Decentralized Physical Infrastructure Networks.

Bitcoin Halving April 2024

Let's first have a look at the upcoming Bitcoin halving that is expected to happen sometime around April 2024. This event is anticipated to be a significant catalyst in the crypto market, historically leading to increased volatility and often marking the beginning of a new bull market. 

The 2024 halving is set to reduce the mining rewards from 6.25 to 3.125 bitcoins per block. This reduction in supply, known as a "supply shock," could potentially lead to an increase in Bitcoin's price, provided that the demand remains strong.

From the trends and developments that we list in this article, the 2024 Bitcoin halving is the only one that we know will happen with 100% certainty. As such, the market effect of halving may already be priced in, however, BTC usually experiences heightened volatility in the months post-halving, which by itself can be a fertile opportunity.

Crypto for Institutions

In 2024, the world of crypto is becoming more attractive to big financial players , thanks to a few key changes. One of the biggest is the possibility of a Bitcoin spot ETF getting the green light in the U.S. This is a big deal because it means major institutions can invest in Bitcoin more easily, making crypto more mainstream​.

Experts from crypto exchanges and lending platforms believe that these big investors are going to dive deeper into crypto this year . This shift is driven by the hope for a Bitcoin ETF, potential cuts in U.S. interest rates, and clearer rules around crypto​​.

There's also talk about making crypto more regulated and stable , which could either hike up prices or drop them, depending on new rules or taxes.

Regulation is Getting more Defined

In 2024, the US is seeing some important changes in crypto regulation. Last year, several crypto-related bills were up for review in Congress. These bills mainly aim to stop illegal financing and include significant acts like the Financial Innovation and Technology for the 21st Century Act (FIT 21 Act) and the Clarity for Payment Stablecoins Act of 2023. These acts are expected to give clearer rules and better guidance, especially around payment stablecoins.

However, there's a general feeling that US banking supervisors aren't too keen on the digital asset world. This attitude has made it tough for crypto companies to work with banks. Similarly, the US Securities and Exchange Commission (SEC) is also known to watch crypto businesses closely, with a degree of skepticism.

Example Case: SEC & Ripple Clash - A Groundbreaking Verdict That's Reshaping Crypto Regulation

Looking globally, other countries are also making moves in crypto regulation. Europe is expected to put its Markets in Crypto-Assets (MiCA) regulation into action in mid-2024, and the UK is also planning to bring in new laws for the crypto industry in 2024.

Web3 Innovations and Trends

So far, the 2024 Crypto Market Outlook by Coinbase mentions a few prospective trends and technologies that could potentially become widely used and adopted. 

Here's a quick look at what's happening:

• Decentralized Identity - All about giving people complete control over their personal data. Innovations like zero-knowledge (ZK) fraud proofs and fully homomorphic encryption (FHE) are going mainstream. They allow for calculations on encrypted user data, keeping it secure. This technology could change how we manage and use personal data in areas like healthcare and finance.
• Tokenization - With rising interest rates, tokenization is getting more attention for its ability to improve capital efficiency. We're already seeing tokenized US Treasury exposure on public networks, and in 2024, this could expand to other areas like stocks, private market funds, insurance, and even carbon credits.
• Decentralized Physical Infrastructure Networks (DePINs) - It's about building physical infrastructure, like energy and telecom networks, data storage, and mobility sensors, independently of big corporations. Projects in this space, like Akash and Helium , are creating economic models that encourage people to build and maintain this infrastructure.

Web3 Gaming

As of early 2024, Web3 gaming is a hot topic in the $250 billion gaming industry, expected to grow to $390 billion in the next five years. Game developers are consistently trying to create high-quality games that include Web3 features like non-fungible tokens (NFTs). However, not all gamers are on board with this, as many still don't like the idea of NFTs and play-to-earn models.

The big challenge for Web3 gaming this year is to attract regular gamers, not just those in the crypto world. It's all about finding the right balance – making games that appeal to everyone without pushing too hard on the Web3 elements.

Many Web3 games that started development in 2021-2022 are expected to launch this year. These releases will give us a clearer picture of how popular Web3 gaming really is and if it can win over the gaming community. 2024 is set to be an important year for seeing how well Web3 gaming takes off.

The Bottom Line

The year 2024 is set to be a defining period for the integration of blockchain technology into mainstream applications, reshaping how we interact with digital assets and manage our online identities.

The anticipated Bitcoin halving event in April 2024 is poised to be a pivotal moment for the crypto market, potentially triggering a new bull run. This, combined with the increasing institutionalization of crypto, especially with the likely introduction of Bitcoin spot ETFs, points towards a year where digital assets could gain unprecedented mainstream acceptance and integration.

We're likely to witness significant strides in the institutionalization of crypto, regulatory clarity, and the practical application of Web3 technologies. As these trends converge, we will soon find out whether crypto and Web3 can carve out a niche for itself among the practical applications of everyday life.