Crypto Trends to Watch Out For in the Second Half of 2024

The second half of 2024 is going to be bullish for cryptocurrencies such as Bitcoin and Ether ETFs. Experts and analysts believe that the effects of crypto halving will continue to have a more visible impact. The demand for spot Bitcoin ETFs will substantially increase going by the present trends. Some believe that Ether ETF may not experience the same level of enthusiasm compared to Bitcoin versions owing to several factors. In this article, we will explore some of the decisive trends that can impact the prospects of Bitcoin and Ethereum in the second half of 2024. 

Factors Influencing Crypto Trends in 2024

2024 is an eventful year and there are indeed events that can indirectly influence the prospects of the cryptocurrency market. These are some of the factors that can impact the crypto markets in various ways.

US Presidential Elections 2024

In the second half of 2024, the US is going for Presidential elections. Donald Trump being one of the candidates supports cryptocurrencies more than his rival Joe Biden. The Biden administration supports tougher regulations but their views on cryptocurrency are evolving. The outcomes of the election may have a far-reaching impact on the vital policies involving the regulation of cryptocurrencies. If the next regime remains decisive, then cryptocurrencies like Bitcoin and Ethereum may benefit substantially and become more acceptable than before. 

Aftermath of Bitcoin Halving

Bitcoin halving historically had a positive impact on its price. The positive impacts usually last for over a year and a half. The last halving in April 2024 had a mixed impact on consumers, miners, investors, inflation, and overall demand. The overall demand did increase in the first half of 2024 because therefore, it is a good sign for speculators and investors. 

Increasing Demand for Bitcoin and Ether ETFs

The demand for Bitcoin and Ether ETFs will increase considerably. The new ETFs have more inflows exceeding $14.4 billion. It will also enable more self-directed investors and market analysts believe it can lead to better recommendations. Crypto products may attract more clients from asset management solutions due to the strong performance of Bitcoin and Ethereum this year. 

Proliferation of Stablecoin

Stablecoins will proliferate considerably and affect the stability of the crypto market. This is because it will be using an alternative form of collateral to back stablecoins through government debt, fiat currencies, and commodities. It may also introduce novel compliance frameworks. Moreover, there will be additional investors to users.

Novel Asset Tokenization

In 2024, more users will prefer assets that are increasingly being tokenized. This is because tokenization helps in better investment scopes, offers fractional ownership, and leads to better traceability. 

Also Read- ETFs May Change The Landscape of Cryptocurrencies

Bottom Line

Many crypto trends in 2024 can fundamentally change the landscape of the decentralized financial sector. As of now, most of the trends largely seem to be positive and will enhance the growth of Bitcoins, Ethereum, and other altcoins. However, there is some apprehension about the ongoing talks of regulations. Regulations with the right intention may yield positive results and enhance the confidence of investors. The converse is also true and some regulations may restrict the opportunities of cryptocurrencies and lead to serious problems.