The year 2024 holds promise for the cryptocurrency market with several key developments that could benefit the sector. Institutional investors are showing increased interest, and wider adoption of cryptocurrencies is expected, marking a significant milestone for a market that emerged just 14 years ago. Developments surrounding Bitcoin‘s upcoming block reward halving, the potential approval of spot exchange-traded funds (ETFs), and a possible bull market are all contributing to the growth of the Bitcoin ecosystem.
The U.S. Securities and Exchange Commission (SEC) is anticipated to approve the country’s first spot Bitcoin ETF by January 10, 2024, following a series of meetings with applicants. Leading asset management firms such as BlackRock, Ark Invest/21Shares, and Fidelity Investments are among those competing to offer an ETF. Anonymous sources suggest that firms updating their applications before the new year may have a 90% chance of approval.
However, it’s important to note that the SEC has previously postponed or rejected such investment products over concerns of potential use for money laundering or market manipulation. This time, expectations are heightened, especially with BlackRock’s entry into the scene, which boasts a near-perfect ETF approval rate with the SEC.
The upcoming Bitcoin block reward halving, expected to occur in 2024, is another bullish trigger. The event will reduce the block reward for miners by 50%, decreasing the rate of new Bitcoin created daily. After the fourth halving, the reward per block will drop from 6.25 BTC to 3.125 BTC. This quadrennial event (every 210,000 blocks) is highly anticipated in the crypto world, as it’s considered one of the most significant occurrences in the industry.
Historically, past block reward halvings have triggered bull runs in Bitcoin, propelling the cryptocurrency market to new heights. Although past performance is not a guarantee of future price movements, it’s noteworthy that after the last halving in May 2020, Bitcoin’s price soared to $69,000. The possibility of history repeating itself is quite high.
In addition to the rally expected post-halving, Bitcoin is also close to a bullish trend due to the anticipation surrounding the potential approval of spot Bitcoin ETFs. The largest cryptocurrency has already surged over 150% since the beginning of the year, driven by these expectations, and is currently trading above $42,000. The price trajectory of Bitcoin will become clearer after the ETFs are approved and the block reward halving takes place.
