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Next year looks promising for the crypto industry as major events are set to occur. Among the several benefits of the upcoming events is a stronger interest from institutional investors and wider adoption of crypto assets, a significant milestone for a sector that came into existence just 14 years ago.
CryptoPotato has put together this short list as optimism builds around the potential growth of the Bitcoin ecosystem, stemming from the network’s upcoming halving event, the spot exchange-traded fund (ETF) approvals, and the potential bull market. These Bitcoin-related events are widely anticipated by the crypto community and could unlock a new phase for the sector.
Spot Bitcoin ETF Approval
The United States Securities and Exchange Commission (SEC) is expected to approve the country’s first spot Bitcoin ETF between January 8 and 10, following a series of meetings with the applicants over the past few months.
Firms vying for the products include leading traditional finance asset managers like BlackRock, Ark Invest/21Shares, Invesco/Galaxy Digital, Franklin Templeton, Grayscale Investments, VanEck, WisdomTree, Valkyrie, Fidelity Investments, and Bitwise.
Anonymous sources revealed that the SEC reportedly asked the contending firms to submit final corrections to their paperwork before the new year, strengthening analysts’ predictions of 90% odds in favor of the approvals by January.
Nevertheless, it’s worth noting that the US securities regulator has delayed and rejected all previous applications for such products, claiming that they could be used for money laundering or market manipulation. This time, though, the tides seem to be different, especially after the arrival of BlackRock at the scene and its nearly impeccable approval rating with the agency.
The Bitcoin Halving
The upcoming Bitcoin halving is another event to look forward to in 2024. The halving is a mechanism that slashes block rewards by 50%, reducing the rate at which BTC is produced daily. Upon completion of the next one – fourth in Bitcoin’s history – the production rate will drop down from 6.25 BTC to 3.125 BTC.
The halving takes place every four years (210,000 blocks), and the next is scheduled to occur in April 2024. The crypto community is abuzz with excitement as the set date approaches because the halving is considered one of the most important events in the industry. Although Bitcoin miners will start earning fewer rewards for their operations, the upsides of the halving are far greater.
The BTC Bull Market
Historically, past halving events have triggered BTC bull runs, which drove the crypto market to new highs. Although historical data does not guarantee future price movements, it is worth mentioning that BTC skyrocketed to $69,000 after the third halving took place in May 2020. There is a high chance that history will be repeated.
Besides the expected rally post-halving, BTC has been rising due to anticipation around the potential approval of the spot Bitcoin ETFs. The asset has risen over 157% year-to-date and currently hovers around $43,000. It remains to be seen how high the leading digital asset will go after the ETFs are approved and the halving takes place.
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