Translation: Blockchain in Vernacular


2023 has been a mixed year for the cryptocurrency industry. While the downturn seen in early 2022 has continued into the first half of 2023, there has been a ray of hope with applications for Bitcoin ETFs from traditional financial giants such as BlackRock. This has provided much-needed support for traditional tokens to gain value and break the spell of a prolonged bear market. Bitcoin’s halving, scheduled for early 2024, is expected to trigger a new bull run.

Given this, people are waiting for 2024 to become enthusiastic about the cryptocurrency industry. This article will outline six key events to watch in 2024 and their potential impact on the market. Understanding these events can allow you to better navigate the cryptocurrency market and seize investment opportunities. Whether you are an experienced investor or a cryptocurrency novice, this information will help you make an informed decision.
1. Bitcoin ETF Approval and Ethereum ETF Expectations The market is extremely optimistic about the approval of the ETF. The U.S. Securities and Exchange Commission (SEC) launched a Bitcoin exchange-traded fund (ETF) in January 2024. Institutional investors consider using Bitcoin as part of their diversified asset allocation strategy. This approval may open up new avenues for cryptocurrency investment and attract more traditional investors who have not yet entered the field. In addition, it is expected that after the approval of the Bitcoin ETF, the Ethereum ETF will be further expanded to provide more investment options for the cryptocurrency market.
2. Ethereum Cancun Upgrade and Token Issuance Boom The Ethereum Cancun upgrade is scheduled for the first quarter of 2024, further unleashing the potential of Ethereum and the Layer 2 (L2) ecosystem. The upgrade is expected to improve the scalability and efficiency of Ethereum-based applications. With this enhancement, projects using zero-knowledge (ZK) L2 solutions may experience a token issuance boom. The cryptographic technology implemented by ZK L2 projects ensures privacy and security while significantly reducing transaction costs and increasing transaction speeds. Many platforms are actively working on implementing ZK L2 solutions and are expected to benefit from this upgrade.
3. The impact of the US interest rate hike cycle on the cryptocurrency market The US interest rate hike cycle is nearing its end, which has brought positive sentiment to the cryptocurrency market. Interest rate cuts may occur as early as May 2024, enhancing the attractiveness of Bitcoin and other cryptocurrencies. Lower interest rates make alternative investments such as cryptocurrencies more attractive because they offer the potential for higher returns. Many platforms allow users to invest in cryptocurrencies at attractive cryptocurrency deposit rates, providing investors with the opportunity to take advantage of this trend.
4. Circle’s IPO and adoption of crypto stablecoins Circle, the issuer of the stablecoin USDC, is preparing for an initial public offering (IPO) in the first half of 2024. The move is expected to support the adoption and acceptance of crypto stablecoins. Due to their pegged nature, stablecoins offer more stable value than other cryptocurrencies. They have lower volatility and are often used for daily transactions and as a store of value. New Age bills accept stablecoin payments, making it convenient for users to pay bills with this digital asset.
5. Bitcoin Halving and Increased Scarcity Bitcoin will halve in 155 days, further increasing the scarcity of this digital asset. Bitcoin halving occurs approximately every four years and reduces the block reward received by miners by half. Historically, the reduction in supply has led to an increase in Bitcoin price due to the increased scarcity of Bitcoin. To illustrate this, let's look at the previous halvings:

Before the 2012 halving event: Bitcoin price was $12 per BTC
After the 2012 halving event, the Bitcoin price reached $260 per BTC
Before the 2016 halving event: Bitcoin price was $650 per BTC
After the 2016 halving event, the price of Bitcoin surged to over $20,000 per BTC
6. FTX Case and Regulatory Clarity The FTX case has entered the late stage and faces restructuring. With regulatory clarification, it is expected to attract new retail funds into the cryptocurrency market. Regulatory oversight is essential for investor protection and market stability. Increased regulatory clarity gives investors more confidence in investing in cryptocurrencies. Cryptocurrency trading platforms should comply with regulations, provide retail investors with safe trading options, and ensure a safe and transparent environment for cryptocurrency investment.
7. Summary The cryptocurrency market outlook for 2024 will present several key events that could shape the future of the cryptocurrency space. The approval of the Bitcoin ETF, Ethereum Cancun upgrade, the impact of US interest rate cuts on the cryptocurrency market, Circle's IPO, Bitcoin halving, and regulatory clarity surrounding the FTX case are all factors worth paying close attention to. By staying informed of these developments, you can take advantage of potential investment opportunities in the cryptocurrency market. However, please conduct thorough research before making an investment decision.