Crypto Market Capitalization Outlook 2024, 2nd Half

Blog, Digital Invest, Ausblick 2024

Crypto market cap 2024

Bitcoin exceeded $73,000 per Bitcoin for the first time in March 2024 (March 14, 2024: $73,750.07 per Bitcoin). But how sustainable is this increase?

The expectation and approval of Bitcoin ETFs in the US since the beginning of the year have given the world's largest cryptocurrency record highs. Bitcoin funds can now be traded on US exchanges after the US Securities and Exchange Commission (SEC) complied with a federal appeals court decision from last year. Since 2021, an ETF (Exchange Traded Fund) has been traded in the USA, which speculates with futures contracts with Bitcoin. There are also trusts that buy and sell Bitcoin directly. However, these have not yet been approved for general stock exchange trading because the relevant applications have not been approved for a long time. The approval of Bitcoin funds also makes the cryptocurrency accessible to the mass market on Wall Street. Furthermore, the slowdown in the release of new Bitcoins, which technically occurred in April 2024, is influencing the price development of Bitcoin. As is well known, Bitcoin is limited to a total of 21 million tokens, of which around 19 million have already been released.

Does Bitcoin have the potential to double in value from $73,000 to $146,000?
The volume risk of Bitcoin, i.e. the accumulation of large Bitcoin holdings among individual market participants, increases the risk of high price fluctuations, as every sale of large Bitcoin volumes can lead to chain reactions and thus to high and rapid fluctuations in value. The launch of new Bitcoin ETFs has increased this risk. At the same time, tokens used for transactions with Dapps and smart contracts on their own blockchains, such as Ethereum (ETH), current price $3,000, BNB, current price $560, Solana SOL, current value $135 and Tron (TRX), current Price $0.12, a significantly higher probability of doubling its value. Investments in liquidity pools with transaction tokens can therefore lead to greater increases in value than investments in Bitcoin ETFs and can significantly reduce the increased risk of high fluctuations in the value of Bitcoin. In the medium term, it is therefore expected that the transaction tokens listed will be in the top 5 market caps.

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