The cryptocurrency market is set to experience a landmark year in 2024, according to enthusiasts and analysts, as Bitcoin and Ethereum prices soar following significant regulatory approvals. The approval of multiple Bitcoin and Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has catalysed this bullish sentiment, marking a pivotal moment for digital assets.
The recent surge in Bitcoin’s value, which has risen by more than 70% to an all-time high in just two months, is largely attributed to the SEC’s approval of Bitcoin ETFs earlier this year. This has created a wave of optimism that has reverberated through the cryptocurrency market.
In a groundbreaking move, the SEC approved eight funds aimed at launching spot Ethereum ETFs. This decision is expected to fuel further gains in the cryptocurrency market, with analysts predicting a continued bull run in the second half of the year driven by strong institutional interest.
Investors are now eagerly anticipating the SEC’s approval of other alternative coins, following the regulator’s May 23 rule change for ETFs that invest in Ethereum, the world’s second-largest cryptocurrency. Major financial institutions, including BlackRock and Fidelity, are among those that have secured approval for their Ethereum ETFs.
If Ethereum mirrors Bitcoin’s recent performance, it could see its price double to around $6,000 by the end of July, up from $3,867 as of May 29, according to data from coinmarketcap.com. This projection reflects the growing confidence in Ethereum’s potential as a significant player in the digital asset market.
Sanjay Popli, chief executive of Cryptomind Advisory, highlighted the upward trajectory of Ethereum prices since May 20, despite uncertainties about the SEC’s endorsement of all the proposed funds. “Politics play a role as Donald Trump, the key opposition to the Biden government, has a policy that supports digital assets,” Popli noted. As the U.S. election approaches, the government appears to be adopting a more favorable stance towards digital assets, given that approximately 20% of American voters hold crypto assets.
Popli predicts that Ethereum prices could reach $6,000 in the short term and potentially soar to $10,000 by the end of the year. Meanwhile, Bitcoin could climb to between $80,000 and $100,000 as institutional investors increase their stakes in the cryptocurrency market. “We can say 2024 is a bull run year for cryptocurrencies, with BTC prices surging since the start of the year,” he said. “The momentum will continue throughout this year with spot Ethereum ETFs joining the trend in the second half, along with other alternative coins that are expected to be launched later, such as Near Protocol and Solana.”
Additionally, Popli pointed out that coins related to artificial intelligence are expected to gain popularity among investors this year. He also emphasized that any potential interest rate cuts by the Federal Reserve would further boost liquidity in the market, providing additional support for cryptocurrencies.
However, Popli cautioned that investors should remain vigilant about geopolitical conflicts, which could pose significant risks to the cryptocurrency market. Despite these challenges, the overall outlook for cryptocurrencies in 2024 remains exceptionally positive, with key regulatory approvals and increasing institutional interest driving what many are calling a ‘golden year’ for digital assets.