Bitcoin ETF, AI in Crypto, U.S Crypto Police Here's What To Expect As We Enter 2024

First of all Happy New Year from Australia everyone! Hope you're having a wonderful end to 2023 and as we step into 2024 the crypto currency market is there are significant developments to look out for that could reshape its dynamics.

Among the key focal points are the potential approval of a Bitcoin spot ETF, the increasing use of AI in crypto trading and the evolving global regulatory landscape.

2024 is set to be a big year for Centralised Exchanges (CEX) as they come under more scrutiny by the United States as well possible growth and acceptance around the world for Decentralised Finance (De-Fi).

Let’s take a look at some of the big news that 2024 has in store for us

Bitcoin ETF A Potential Sell the News Event

Recent analysis from CryptoQuant suggests that the approval of a spot Bitcoin ETF could trigger a "sell the news" event causing the Bitcoin price to potentially dip to USD32,000. The rationale behind this prediction lies in the current high unrealised profits held by short term Bitcoin holders and miners.

Historically, such situations have preceded price corrections. As Bitcoin approaches the USD 40,000 mark, short-term holders are experiencing unrealised profit margins of 30%. A scenario that has historically led to corrections.

According to the report there have been increasing miner sell offs in recent weeks coupled with elevated transaction fees, indicates a potential correction. Bloomberg Intelligence analysts assign a 90% probability of a spot Bitcoin ETF approval by the U.S. Securities Exchange Commission in Q1 2024, with major firms like BlackRock, WisdomTree and Valkyrie eagerly awaiting the green light.

AI Growth in Crypto Trading

In 2024, we anticipate a surge in the use of Artificial Intelligence (AI) in crypto trading. Traders are increasingly relying on new technologies to predict market movements and identify trading waves.

This shift towards AI-driven trading strategies reflects a growing recognition of the benefits of automation and predictive analytics in navigating the complexities of the crypto market.

As AI continues to evolve, it is expected to play a pivotal role in enhancing trading efficiency and decision making not only in De-Fi but broader financial markets including traditional finance and stock market trading.

U.S Emerges and Global Crypto Police

The United States has taken a leading role in enforcing legal actions against crypto companies In 2023, heavyweights like Binance faced a USD 4 billion settlement and the Securities and Exchange Commission (SEC) sued both Coinbase and Binance.

The U.S. has been at the forefront of adopting formal laws and regulations for the crypto industry. Despite criticisms of a "regulation by enforcement" approach, U.S. regulatory bodies including the SEC, Commodity Futures Trading Commission (CFTC) and Treasury’s Financial Crimes Enforcement Network (FinCen).H have actively policed the space.

While other regions have developed comprehensive regulatory frameworks the U.S. remains unparalleled in its enforcement actions against major crypto players.

Top Movers of 2024

Bitcoin(BTC) : Despite potential ETF-induced volatility, Bitcoin remains a focal point for investors. As institutional interest grows, BTC is expected to secure a more prominent place in investment portfolios.

Ethereum (ETH) : Ethereum, with its dominant position in the smart contract and decentralized finance (DeFi) space, continues to be a top contender. The upcoming Ethereum 2.0 upgrade further enhances its appeal.

Solana (SOL) : Solana has surprised many with its resilience and strong ecosystem development efforts. However, a possible price correction looms if FTX, the exchange associated with Solana, initiates a sell-off of their holdings.

Don't Forget

We've also got NFTS launching on Hive-Engine, Tribaldex with a set circulating supply of 50,000 tokens and will be moving to establish a Hive/NFTS Pool on Hive Engine as well as a curation account. So get in while you can.

Predictions for the Regulatory Landscape in 2024

As we navigate the crypto landscape in 2024, the potential approval of a Bitcoin spot ETF, the increasing integration of AI in trading and the evolving regulatory environment will shape the market's trajectory.

Traders and investors must remain vigilant considering the possibility of a "sell the news" event while capitalising on the opportunities presented by advancements in AI and a maturing regulatory landscape.

The U.S. continues to lead the charge in regulatory actions, but global efforts indicate a broader commitment to creating a secure and regulated environment for the cryptocurrency industry.

Image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.