Crypto Market Cap Outlook 2024

Blog, Digital Invest, Ausblick 2024

Crypto market cap 2024

More and more institutional investors are participating in the crypto market and are amazed that traditional market indicators such as inflation or interest rate developments have only a limited influence on price developments in the crypto sector. In fact, regulation, new business models and loss of confidence in central banks' monetary policy play more crucial roles. What does this mean for the development of crypto market capital in 2024?

From our perspective, the following points in particular are likely to shape crypto market capitalization:
1. The Bitcoin Halving: In 2024, after four years, there will be another Bitcoin halving. The reward for mining new Bitcoins is halved, which has historically led to rising Bitcoin prices. The Bitcoin halving is considered a sure indicator of positive developments in the global crypto market.

2. The monetary policy of central banks: After historic inflation, central banks find themselves in a complex situation. A further increase in interest rates would put a strain on the economy, while interest rate cuts would ease the burden on real estate financing. In contrast, the crypto market offers the opportunity to manage and invest values without the involvement and influence of banks or central banks, which means, for example, negative interest rates can be technically prevented.

3. Regulation: The MiCA Regulation provides a uniform legal framework for crypto assets in the European Union. Although the regulation takes a good approach, it significantly complicates new crypto services and business models in the EU. In the USA, however, the American Securities and Exchange Commission (SEC) lost a groundbreaking judgment against Ripple. The cryptocurrency (XRP) is not classified as a security in the USA. While the MiCA regulation in the EU makes decentralized trading more difficult, BlackRock's Bitcoin ETF is driving strong demand for Bitcoins. BlackRock's investment in crypto assets is increasing massively, and institutional investors have a low-risk partner in BlackRock, unlike most crypto exchanges before. However, the greatest performance in 2024 is expected for individual stocks and not for ETFs. Overall, nothing stands in the way of a positive development of the global crypto market in 2024. The good signs should be used to get started with your own smart contracts and DApps.

We wish you a successful 2024!

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