The next year looks promising for the crypto industry as major events are about to happen. Among the many benefits of the upcoming events are increased interest from institutional investors and broader adoption of crypto assets, a significant milestone for an industry that began just 14 years ago.
CryptoPotato put together this short list as optimism grows around the potential growth of the Bitcoin ecosystem, stemming from the network’s upcoming halving, spot exchange-traded fund (ETF) approvals, and potential bull market. These Bitcoin-related events are widely anticipated by the crypto community and could usher in a new phase for the sector.
One-time approval of Bitcoin ETF
The U.S. 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 applicants over the past few months.
Companies vying for these products include major traditional financial asset managers such as BlackRock, Ark Invest/21Shares, Invesco/Galaxy Digital, Franklin Templeton, Grayscale Investments, VanEck, WisdomTree, Valkyrie, Fidelity Investments and Bitwise.
Anonymous sources revealed that the SEC would have required vying companies to submit final corrections to their filings before the new year, reinforcing analysts’ predictions that there was a 90% chance of approvals by January.
It is worth noting, however, that the US securities regulator has delayed and rejected all previous applications for such products, saying they could be used for money laundering or market manipulation. This time, however, the tides appear to be different, especially after BlackRock arrived on the scene and its near-impeccable approval rating with the agency.
The upcoming Bitcoin halving is another event to look forward to in 2024. Halving is a mechanism that reduces block rewards by 50%, thereby reducing the daily BTC production rate. At the end of the next one – the fourth in Bitcoin history – the production rate will increase from 6.25 BTC to 3.125 BTC.
The halving occurs every four years (210,000 blocks), and the next one is expected to take place in April 2024. The crypto community is abuzz as the set date approaches, as the halving is considered the one of the most important events in the sector. Even though Bitcoin miners will start earning fewer rewards for their operations, the benefits of halving are much greater.
The BTC bull market
Historically, past halving events have triggered BTC bull runs, which propelled the crypto market to new highs. Although historical data does not guarantee future price movements, it is worth mentioning that BTC surged to $69,000 after the third halving in May 2020. There is a good chance that history will repeat itself.
Aside from the expected bounce after the halving, BTC rose due to anticipation of the potential approval of spot Bitcoin ETFs. The asset is up over 157% year to date and is currently hovering around $43,000. It remains to be seen how high the leading digital asset will reach after ETF approval and the halving.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off fees on Binance Futures for the first month (terms).