The U.S. Securities and Exchange Commission (SEC) recently approved Bitcoin spot exchange-traded funds (ETFs).
This approval is a major step in the crypto world. Since rumors began, Bitcoin’s value has soared, increasing by 140% in the last year.
Yet, Bitcoin ETFs aren’t the only factors influencing crypto this year. Bitso, a Mexican exchange, released a document outlining five crucial predictions for 2024’s crypto industry.
These predictions are:
1. Regulatory Focus and Fraud Prevention
Bitso predicts that regulation will positively impact the industry’s credibility. This year, discussions on regulation will be crucial, especially in regions like Brazil and Colombia.
Regulatory advancements are likely to boost cryptocurrency adoption in these areas.
2. Stablecoins’ Growing Importance
Bitso emphasizes the ongoing significance of stablecoins in Latin America. These currencies, like USDT issued by Tether, offer protection against currency volatility.
The report highlights USDT’s record-high market capitalization, indicating stablecoins’ enduring relevance.
3. Crypto as an Investment Tool
Crypto investors anticipate a price increase, often referred to as a “summer.” Bitso foresees digital currencies becoming more popular as investment tools.
Diversification across various assets will help people protect and grow their wealth.
Certainly, The industry will develop tools to help investors track currency performance and make informed decisions, potentially using data analysis and artificial intelligence.
4. The Rise of DeFi and Web3
Bitso expects DeFi to play a vital role in the growth of Web3. Web3 aims to decentralize the internet, increasing data ownership and privacy control.
In 2024, major players in the ecosystem will likely introduce products that enhance asset and identity control.
5. Bitcoin’s Next Big Moment
Bitcoin is set to experience another halving this year, expected to increase its price.
Although the exact date is unknown, it’s projected for the year’s first half. So, this event could boost Bitcoin’s value in subsequent months.
In addition, The report also notes the significant impact of Bitcoin ETFs. The Chilean crypto exchange Orionx highlights the importance of these ETFs.
They provide greater accessibility for a broad range of investors and simplify Bitcoin’s integration into wealth management strategies.
Linking Bitcoin ETFs to well-known brands could attract older, wealthier investors.
In conclusion, This move offers legitimacy and a clear regulatory framework, potentially making Bitcoin a common investment strategy choice.