The future of cryptocurrency 2024

As 2022 began, anxiety gripped cryptocurrency investors. Bitcoin (BTC -0.9%), the top token, had skyrocketed by 61%, and Ethereum’s (ETH 0.66%) ascent reached an impressive 409% over the past year. Yet memories of the dramatic rise in late-2017 followed swiftly by a plunge into frozen waters during early-2018 lingered on everyone’s minds as both major coins started to slide downwards since November of last year; Was this signifying that another abrupt market correction was looming?

The spring of 2022 saw bearish trends overpowering the primarily positive market momentum, resulting in a dip in the stock market. Contributing factors were steep inflation rates and Russia’s attack on Ukraine along with various macroeconomic challenges. Cryptocurrencies also experienced significant drops during this period, plummeting at a faster rate than S&P 500 stocks.

The upcoming 2023 calendar has the potential to provide crucial answers that were previously left uncertain, thereby charting a definitive path for cryptocurrencies and their stakeholders in the long haul. Here’s what anticipations are ahead.

As the calendar turned to 2022, cryptocurrency investors were feeling uneasy. Despite Bitcoin (BTC -0.9%) rising by 61% and Ethereum (ETH 0.66%) climbing an impressive 409% over the previous year, memories of the massive surge in value followed by a sharp decline in late-2017 and early-2018 still lingered. Adding to concerns was a trend downward for leading coins since November of last year – could this be indicative of another looming correction within the crypto market?

In a twist of fate, the predominantly optimistic market upswing in 2021 was eclipsed by bearish patterns during springtime 2022. A spike in inflation, Russia’s incursion into Ukraine and other large-scale economic quandaries caused the stock market to plummet. Correspondingly, cryptocurrencies tumbled at an even quicker pace than S&P 500 throughout this duration.

In the coming year of 2023, crucial inquiries lingering from past periods could be resolved by the calendar, which may have a significant impact on cryptocurrencies and those who invest in them. Let’s explore what is anticipated to unfold.

Cryptocurrency market in 2023.

Predicting the fate of cryptocurrency market in 2023 and beyond is an uphill task due to lack of concrete information. However, closely monitoring major crypto trends can enable one to make informed investment decisions as this fast-changing industry progresses over time.

A few critical elements should be given special attention by you.

Regulatory practices in the United States and other countries.

Cryptocurrency payments becoming commonly used by the general public.

ETFs that use Bitcoin and other digital currencies as their underlying assets.

The acceptance of Bitcoin (or other digital currencies) as an official medium of exchange by nations.

Cryptocurrency has the potential to become the primary form of currency in future.

A potential ideal possibility for 2023 and the future involves regulators internationally collaborating to establish a universal framework for crypto regulation. Yet, current viewpoints on cryptocurrency across nations differ vastly – from considering Bitcoin as an official currency in El Salvador and the Central African Republic, to deeming all transactions involving digital currencies illegal in China. Hence, it appears improbable that global uniformity on this subject will occur anytime soon.

Although sometimes adopting a skeptical approach, Yellen has been closely monitoring the crypto industry for years. Under the guidance of U.S Treasury Secretary Janet Yellen and Securities and Exchange Commission Chairman Gary Gensler, both highly qualified individuals heading an expert team, federal-level regulations on cryptocurrencies are moving forward. In 2018 at Massachusetts Institute of Technology (MIT), Gensler even taught courses regarding Bitcoin, blockchains as well as other cryptocurrency-related topics.
The future of money may not lie in cryptocurrency.

There are various ways in which a brighter future might be postponed.

It is possible that policymakers will procrastinate and be unable to establish a reasonable regulatory structure within the next few years.

It is possible for them to conclude that Bitcoin and Litecoin currencies solely facilitate illicit pursuits and immoral agents, with no place in the United States.

Retailers may refuse to accept digital currencies due to their uncertain value and prefer conventional transactions involving cash or credit cards.

The growing instances of security breaches, malfunctioning technology platforms and other hazards to the safety of payment systems based on blockchain could pose a risk to public confidence in digital currencies. One notable case is that algorithmic stablecoins were negatively perceived following the downfall of TerraUSD (USDT -0.02%) in April 2022.