Despite the fact that the forecast of the value of cryptocurrencies always carries a certain degree of uncertainty and speculation, it is possible to identify a number of factors that will influence this indicator in 2024. On what will affect the value of cryptocurrencies in 2024 told in a comment UNN co-founder of Ukraine's first fintech ecosystem Concord Fintech Solutions Elena Sosiedka.
The expert highlighted the main factors:
- Fed Monetary Policy: The policies of the US Federal Reserve affect financial markets in general, including the cryptocurrency market. "For example, rate decisions can influence investment appetite for risky assets such as cryptocurrencies," explained Elena Sosiedka.
- Geopolitical environment: Instability in global politics and economics may contribute to increased interest in cryptocurrencies as alternative assets.
- Bitcoin halving: The upcoming bitcoin halving, which will cut the reward for mining by half, could create a supply shortage and thus increase the bitcoin price.
"Historically, such events have led to higher prices. The next halving for bitcoin is expected around April 2024. During this event, the reward for mining a block will be reduced from the current 6.25 BTC to 3.125 BTC," said Elena Sosiedka.
- Infrastructure Development: Advances and improvements in technology, including the emergence of spot bitcoin ETFs, may increase the flow of institutional investment and, as a result, support the growth of cryptocurrency prices.
- Financial Inflation and Macroeconomic Indicators and: General economic trends such as inflation can also affect cryptocurrency markets.
"For example, high inflation may encourage investors to seek out 'protective assets,' which could include bitcoin," Neighbor explained.
The expert also noted the need to take into account that the cryptocurrency market is characterized by high volatility and unpredictability, so even if there are certain trends and assumptions, the actual dynamics may differ significantly.
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Earlier in comments UNN co-founder of Ukraine's first fintech ecosystem Concord Fintech Solutions Elena Sosiedka talked about common factors affecting the value of cryptocurrencies.