Some ‘experts’, millionaires, and influencers have been claiming that the reign of Cryptocurrency will come to an end soon. Amidst these claims and allegations, the cryptocurrency market is estimated to have an annual growth rate of 7.99 in 2024.
However, we have also seen some dramatic falls within the first few months this year due to “crypto winter. So, is crypto actually dead in 2024? Let’s see what the experts in the cryptocurrency market are saying.
In this article, we will cover all the aspects of the current cryptocurrency market and see what the experts are predicting about the future of cryptocurrency.
We will also see how the US presidential election and the revision of the Federal Reserve’s interest rate can influence the cryptocurrency market. So, ready to find out if cryptocurrency is really dead? Let’s dig in.
Is Crypto Dying?
Well to give you a straightforward answer, cryptocurrency is nowhere near its deathbed. Let’s consider Bitcoin (BTC) as an example. At the end of January 2024, BTC was valued at just 40,000 USD, but in July 2024 it is sitting at 60,000 USD.
So, while you can still expect to see turbulence at times, history teaches us that the crypto market is capable of recovering with flying colors.
Crypto Winter in 2024
June 2024 was not a great year for the cryptocurrency market. Many crypto assets including Bitcoin and major altcoins struggled during this period. The biggest fall was of course the meme token Maga (TRUMP) losing 55.29% of its original worth. This period of prolonged decline in the value of cryptocurrencies is called crypto winter.
This dip in the market is not always tied to any rel-fe incidence or economic recessions. Since the market of cryptocurrency is run by a demand-supply chain, and since cryptocurrency is a relatively newer concept the market often exhibits independent movements.
Experts say that the recent downturn in the cryptocurrency market is an after-effect of some regulations and rules imposed by countries including the USA and China that turned down many investors.
The reports also say that the negative reputation given by the media also plays an important role in the crypto winter in 2024.
However, it is also noted that the scalability issues with cryptocurrency may also factor into this struggling period of cryptocurrency.
That being said, the experts also predict a resurgence in the market in the coming days. Many experienced traders commented that the market usually follows a cyclical pattern and you just have to wait out this winter to enjoy a summer of sunshine and rainbows.
While the experts are optimistic about the cryptocurrency market, let’s see what the future holds for the crypto market.
The Future of Crypto Currency
Experts predict that the bitcoin will be worth about $200K by the end of 2024 Q3. While this prediction can seem a bit bloated, some factors can drive the market up real soon including:
- The innovation and new developments in cryptocurrency technology, that is aimed to facilitate interoperability between blockchains.
- Advancements in the cryptocurrency ecosystem supporting faster scalability
- The new regulations include January’s Securities and Exchange Commission (SEC) approval of the first spot bitcoin ETFs to trade on major US exchanges.
- Major financial institutions such as banks continue to adopt blockchain technology increasing the confidence of investors in the future of cryptocurrencies
- Cryptocurrency is getting high attention in the US due to the upcoming 2024 elections.
Additionally, the decisions of the Federal Reserve on interest rates are one of the major things to look forward to in the coming months. This will provide an update about the long-term economic projections.
Experts say that the Fed may cut the interest rates by November 2024. However, there is a 46% chance that the interest rate will remain the same.
How Does the US Presidential Run Influence the Crypto Market?
The US presidential elections have always had an impact on global trading affairs. This time the focus also comes on to the cryptocurrency market as well.
The two major presidential candidates in the 2024 elections are Biden and Trump. According to who wins the election, the cryptocurrency market could swing either way. Let’s see why.
Biden, the presidential candidate of democrats and current US president has a wary stance on cryptocurrency. People suspect that Biden may impose a tax on cryptocurrency trading and mining if he gets re-elected.
However, experts say that Trump can be a supporter of the crypto market and the possession of digital assets. So in essence, the 2024 US election can have an impact on the cryptocurrency market either way.
Real-life Uses of Cryptocurrency
Cryptocurrency is a digital asset that does not exist in real life. Users are finding more and more to use the valuable coins in real life.
With more people and financial institutions adapting to crypto, it will be with us in to foreseeable future. Some of the real-life applications include:
1. Send and receive money across borders
Cryptocurrency can be used for cross-country transactions effectively. You can send crypto to a friend or family member who lives in another country.
2. Shopping
You can now use cryptocurrencies as a payment for online purchases or online services. The companies that accept cryptocurrencies as payments include Microsoft, PayPal, Starbucks, Overstock, and AT&T.
3. Long-term investment
Many investors see crypto as a means of long-term investment option. The year-to-year net growth of the market is confidence-inducing for investors.
Conclusion
To sum up, cryptocurrency has seen several dramatic peaks and falls over the years. While it is in ‘winter’ in July, it is far from crypto’s death. However, the future of cryptocurrency is unpredictable and volatile.
In the coming months, several things can affect the crypto market to swing either way including the US presidential election, the Federal Reserve’s new interest rates, real-life applications of cryptocurrency, and more.
So, while no one can precisely predict what the future holds for cryptocurrency, you can be certain that it is nowhere near its deathbed.
