In the year that is 2024, crypto industry leaders and analysts have already placed their bets on what to expect on the future of digital assets. However, things these days are as murky as swamp water due to the unpredictable nature of the COVID-19 viral outbreak that we are currently dealing with.
Still, we did the best and pulled up some of the most head-turning and highly anticipated predictions that we have rounded up for the new year and beyond.
Prediction 1: Price Decline of Bitcoin
Since the start of April 2024, Bitcoin’s price has declined by 8%, which, according to Finder.com’s panel, believes it to be mostly (almost 90%) because of the COVID-19 situation.
According to Joseph Raczynski, Thomson-Reuters technologist, institutional investors were relatively quick to dump Bitcoin in light of the current crisis. He says the reason for the price drop in BGC is directly related to institutions quickly unloading the crypto giant into cash as soon as the COVID-19 situation was made aware of. Of course, it has impacted other digital assets, but it also proved that institutions had invested in crypto assets over the last several years.
Unfortunately, the coronavirus outbreak isn’t the only factor that bears the responsibility for the drop. In fact, half of finder.com’s panel believes that the price drop is partly because of the crypto giant’s own failure to hold their price when traditional markets fell, whereas 30% believe the plus token scam may have had an effect. The other 20% assume that loading up on BTC right before halving is to blame.
Nevertheless, it appears the corona-activated recession is justifiable as most economists now foresee a worldwide recession. Still, where does this put Bitcoin in the days to come? Apparently, 90% of the panel actually believes that Bitcoin can pull out of this global financial crisis.
However, Ben Ritchie, Managing Director at Digital Capital Management, believes that there is a wave of uncertainty in Bitcoin’s wake later on. He goes on to say that Bitcoin is viewed as a political and economic hedge that will invite numerous eyes during this tumultuous period. As the interest from institutional investors grows every time, Bitcoin continues to become a more recurring composite of their portfolios, and it is expected to escalate in the climate of today.
Genson Glier, the co-founder of BlockToken, shares the same sentiment. He goes on to say that because of the current crisis, many individuals will lose faith in their government. And it is with this lack or loss of trust that is one of many reasons why BTC was able to establish itself. He believes that people will continue to view it as an added class for wealth distribution nowadays.
Prediction 2: Major Digital Assets Face Deep Correction
The price fall experienced in Bitcoin has been followed by low volume. From the daily time frame, the key range that customers acquire is somewhere from $6,462 and the $6,800 zone. Based on the buyer’s reaction, BTC may look to discuss future movements.
Here’s the price prediction of Bitcoin from TradingView.
Top altcoin Ethereum (ETH) ‘s price drop is below the $160 mark. But even despite the rate dropping more than 7%, ETH is not the bottom of the present decline. The Relative Strength Index (RSI) hasn’t moved to the oversold zone, and the rising channel’s bottom has not yet been tested. The closest support zone is $147.
Compared to ETH, XRP has lost much less, which is 5.68%. For price forecast, however, XRP has been more bearish than ETH and BTC. At the level it is currently at, there isn’t any liquidity, and the trading volume is still dropping. One likely scenario is to find support at $0.18; the price remains as it is for a while.
Prediction 3: Big Secular Bull Market To Persist
In spite of the COVID-19 crisis, Bitcoins is still the leader in the crypto market. And its long-term chart BTC appears to be constructing a long-term basis. This chart indicates that the current bull market # 3’s pace may slow down compared to the last bull market #2. Of course, the keyword used over here is ‘might’. It’s not exactly set in stone, although it may seem to be heading in that direction.
Depending on how Bitcoin is going to be behaving with ongoing price levels, it is suggested that we’ll need to switch up our investing strategy: this could be between buy-and-hold to a mix of long-term holding with trades in the mid-term. How much, how, and when, are questions that are solved through Investing Haven’s premium cryptocurrency investing service.
The website suggests that the grand secular Bitcoin bull market is in place and so far, not going anywhere else in the future ahead. It’s the same way as they think that the grand crypto bull market is in place in 2024 and ahead. You can find out more market information over at comparebrokers.co.
Prediction 4: Quantum Computing Being The Future For Cryptocurrencies
There’s no way to ignore Quantum Computing in 2024. Google has made a revolutionary breakthrough in Quantum supremacy, publishing test results from its 54-qubit processor is that performed a competition in 200 seconds that would have otherwise taken 10,000 years. The inescapable potential of quantum computing offers stupendous implications for the crypto industry.
These days, the pseudo-random key generation leaves cryptocurrencies vulnerable to hacker exploitation. The potential within Quantum computing boosts the possibility of predicting software generated values where major security concerns can be presented.
Prediction 5: China Launches The Central Bank Digital Currency (CBDC)
Surprisingly, China was known for its anti-cryptocurrency, an anti-blockchain stance up until October 2019, and this was surprisingly largely due to the citizens rather than the government. Then in October of the same year, President Xi Jinping had announced his complete support for blockchain, which therefore resulted in innumerable research and investments being put into blockchain technology.
I’m not exactly certain how well their 2024 plans to launch the Digital Currency/Electric Payment (DC/EP) are going to be given the ongoing viral pandemic, but given that they had gotten things in better control than when it started, there may still be hope for it yet.
