It goes without saying that the year 2023 has been an eventful one for the crypto industry. After a chaotic 2022, the industry continued to feel the effects of the winter with layoffs and an air of pessimism in the first half of the year. But, in the last few months, we seem to be seeing early signs of a market recovery and this has immense implications for 2024 and the crypto industry overall.
However, 2023 is not yet over and from all indications, there might be some significant developments before the year wraps up. One of the first likely developments is the price of major cryptos. Tokens like Bitcoin and Ether have seen price spikes in the last few weeks, bolstered by increased confidence in the industry, whale activity, and the decision by the Federal Reserve regarding interest rates. There has also been more use of cryptos in the last year for things like domestic payment and gambling on casinos not on GamStop along with their GamStop-listed counterparts. It seems that whatever the platform consumers use to gamble, cryptocurrency finds it way into the mix.
The newfound confidence in the industry seems to be a correction from the pessimism we’ve endured for several months as well as other factors. First, there is the highly sought-after Bitcoin spot ETF that seems to be on the brink of approval. Several companies have applied for it over the years but BlackRock seems to have the best chance of all. In anticipation of this possible victory for the industry, we can expect the price of several top tokens to rally ahead of early 2024 when the ETF is expected to be approved.
Then there is the effect that Sam Bankman-Fried’s conviction will have on the industry. The former FTX CEO is facing up to 115 years in prison for his part in the exchange’s collapse; this was followed by plans by the now-defunct company to sell off $100 million worth of crypto. While the news of the conviction has lifted investors’ spirits, a dumping of that much crypto into the market could hamper the progress we’ve made so far. It puts us in a tight spot where investors might feel compelled to buy to take advantage of an incoming bull run but are also worried about a potential token dump.
As the year comes to an end, we might also see further tightening of restrictions with regard to crypto use around the world. One of the legacies of the FTX collapse was that the industry was put under more scrutiny and this shows no signs of stopping. The US government, for example, is looking at clamping down on the activities of token mixers after linking cryptocurrency to the current developments in Israel and Palestine. It’s been suggested that Hamas was sent millions of dollars in crypto ahead of the October 6 attack and this has brought the industry under a harsher microscope than before. We can expect that a few laws might pass or be considered before the end of the year and these could put a damper on the current mood within the industry.
However, despite these setbacks, it does seem that investors are gearing up for a bull run. We’ve been in a crypto winter for over a year now and the market seems due to correct itself. Bitcoin has already topped $35,000, which was a major resistance point and other tokens seem to be following suit. The way many see it, 2024 will be the year that the market swings back and this will prompt investors to stock up on tokens for the rest of 2023. We can expect the price of Bitcoin and others to maintain their current position and even soar.