what is moving the crypto market

The Bitcoin ushers in 2024 with the continuation of the rally that began last year and exceeds 45 thousand dollars, the highest level in almost 21 months, dragging the other cryptocurrencies with it and continuing a ride that during 2023 made it earn more than 160%. The cryptocurrency reached an intraday high of $45,519.52 overnight. This is the highest level since April 5, 2022. Bitcoin then continued its rally this morning to reach an intraday high of $45,883 before retracing around $45,600.

Possible US green light for spot Bitcoin ETF

The market continues to bet on green light from the Securities and Exchange Commission (SEC) for the first ETF who invests in the main cryptocurrency. By January 10, the American Consob will have to decide whether to approve the request presented jointly by 21Shares and Ark Investment, leader of a dozen asset management companies – including BlackRock, Invesco, Fidelity and WisdomTree – who have applied to launch ETFs that will directly purchase and hold Bitcoin, increasing demand for this asset. This would allow investors to buy a product that follows the price of bitcoin without having to directly own the cryptocurrency.

Bitcoin Halving Strengthens Bullish Trend

The Bitcoin halving – a technical event in which the rewards offered to cryptocurrency miners are halved, which reduces the supply of bitcoin on the market – scheduled for May 2024, fuels positive expectations, strengthening the consolidated bullish trend linked to this phenomenon. “Although from a quantitative point of view the halving is less and less relevant, historically it has always coincided with significant peaks in prices”, explains Ferdinando Ametrano, co-founder and CEO of CheckSig.

The digital asset market: a year of crucial turning points

2024 it announces itself as a period crucial for Bitcoin and crypto-assets. The prospect of new highs for Bitcoin, exceeding 69 thousand dollars in November 2021, – according to CheckSig forecasts – presents itself as a tangible possibility, despite the anticipated volatility and possible retracements. Some analysts even make the bold prediction of exceeding 100 thousand dollars. The horizon of 2024 is characterized by a bullish trend in the cryptocurrency market. The perspectives market are further fueled by the prediction that i interest rates will fall in 2024, creating a climate favorable for investments in digital assets.

Regulatory clarity is the engine of growth

The growing adoption in Europe signals an ever greater acceptance of cryptocurrencies as a legitimate asset class, both by institutional and private investors. The Italians, for example, at the end of June held almost over authorized operators two billion euros, which certainly increased with the growth of the market in the second half of the year. In this context, – the CheckSig analysts point out – the market particularly rewards the operations of cleaning of the sector. Regulatory interventions in the United States have addressed and condemned fraudulent actors such as Sam Bankman-Fried’s FTX and Changpeng Zhao’s Binance. This helps to instill confidence in sustainable growth, free from scandal and fraud. 2024 also marks the entry into force of MiCA (Markets in Crypto Assets), providing a clear European regulatory framework. The recent financial law in Italy and the upcoming tax clarifications in all European countries are helping to outline a clearer and more uniform regulatory and tax framework for the world of cryptocurrencies.

Potential risks in the crypto market in 2024

“In every bullish cycle – warns CheckSig – new digital assets of dubious reliability emerge. For this reason, caution is advised in enthusiasm for ephemeral news. Ether can, however, consolidate its complementary role to Bitcoin, while stablecoins will increase their utility. Tether, the leader among stablecoins, bears the responsibility of proving itself reliable. Despite progress in terms of transparency in recent months, there remain concerns about its solvency. To date, the main concerns in the market are the risks of financial gaps. In parallel, it is imperative to closely monitor regulatory developments around Binance. The company was convicted and fined for anti-money laundering failures, highlighting a loss of market share; the important thing is that unexpected shortcomings do not emerge in this context too. Finally, CheckSig recommends paying attention to HTX Global: the founder, Justin Sun, has credibility issues and the exchange holds a significant percentage of its reserves denominated in the cryptocurrency it issues.”