The crypto market is often regarded as a proverbial rollercoaster, and the next big turn might be happening in 2024. According to Huf, the founder of a new decentralized exchange, Pear Protocol, set to launch in 2023, the first quarter of 2024 could inaugurate the next bull run stirring the collective enthusiasm of crypto-enthusiasts.
Huf’s rationale is connected to the Bitcoin halving event scheduled for 2024. As per the crypto protocol, Bitcoin’s mining rewards are halved every four years, which traditionally significantly influences the price of BTC, often sending it on an upward trajectory. This prospect gives community members a reason to be bullish.
At the same time, such bullish sentiments hinge on certain economic conditions, chiefly, the potential adjustments on interest rates by central banks. If ongoing inflation takes a downturn, banks might resort to cutting rates. This movement sparks a whole new discussion about the interplay between traditional finance and crypto markets.
For instance, amidst these anticipated market circumstances, will the United States give a green light to the first fully spot Bitcoin exchange-traded fund by 2024? According to Huf, such events could indeed be the game-changer, with the potential to significantly boost crypto adoption.
However, one must consider the flip side of the coin. Crypto markets are remarkably influenced by narratives. They may help investors make decisions, but are equally likely to generate noise and dilute the true signal. The current market’s low volatility might be due to the same money rotating from one protocol to the next, or one blockchain to another, rather than new stimulus and new money pouring in.
So, while the bullish narrative for 2024 continues to formulate, characterised by Bitcoin halving, potential interest rate cuts, and prospective BTC-ETF approval in the US, it’s crucial to maintain a balanced viewpoint. As new narratives emerge, they must be examined critically, taking into account the moving parts of both the crypto industry and wider economic contexts.
Each twist and turn in the crypto market journey provides new learning opportunities, and it’s always beneficial to listen to industry thought leaders like Huf. These insights not only help to shed light on evolving market trends but also to develop a more nuanced understanding of this exciting yet volatile domain.
Source: Cointelegraph
