Outlook Report 2024: Macro and Cycles The Road Ahead for the Rise of Crypto

As early 2024 approaches, the possibility of a U.S. ETF becomes more tangible, and with the upcoming halving of Bitcoin in April, the year ahead is set to be a very positive one!

1. 2023 Cryptocurrency Market Review
We learned to operate conservatively through a tough market in 2023. For most of the year, the market was in a bear market, but towards the end of the year, multiple news brought hype and we saw a significant shift in the crypto market. This growth indicates a major shift from the previous slow phase and has surpassed the cryptocurrency winter. While it is too early to identify this trend, the resilience and progress of the market clearly demonstrates its staying power. 2023 is the year to overcome the challenges and set the stage for further innovation in the crypto world.

1.1 Cryptocurrency Market Expansion and Record-Breaking Growth
The cryptocurrency landscape saw significant growth in 2023, with leading tokens such as Bitcoin, Ether, USDT, and SOL at the forefront. This spike in value is particularly evident in Bitcoin and Ether, in line with overall market trends, where the top 10 market capitalization tokens have made significant strides. Among other things, the market capitalization of stablecoins has also risen significantly due to the booming crypto space. This trend is not just about numbers. It highlights the growing importance of cryptocurrencies in the financial world, which will overtake traditional assets by 2023.

2024 Outlook Report: Macro and Cyclical, The Road Ahead for Crypto’s Rise  BTC Asic Miner

Source: CoinMarketCap

1.2 Expanding Bitcoin Adoption: The Shift to the Mainstream
2023 will be a landmark year for Bitcoin, marking a shift towards wider adoption and increased interest from new investors. Glassnode’s data shows an increase in smaller bitcoin holdings (over 0.01 BTC), demonstrating the growing participation of retail investors. Despite the volatility of financial markets, Bitcoin continues to be hailed as a safe and attractive investment option, attracting the attention of mainstream investors. This shift highlights Bitcoin’s journey from a niche asset to becoming a key player in the mainstream financial sector.

Outlook Report 2024: Macro and Cyclical, The Road Ahead for the Rise of Crypto Source: Glassnode

1.3 The Rise of Bitcoin: Shaping the Future of Institutional Investing
Bitcoin’s recent accomplishments go far beyond expanding its market. It has triggered a major shift in the way large financial institutions and publicly traded companies handle and invest in cryptocurrencies. These institutions now hold large amounts of Bitcoin, demonstrating a spike in overall investor confidence. The key factor in this change is that Bitcoin’s clever integration of new financial products into its decentralized setup has attracted the interest of long-established financial institutions and major publicly traded companies. Even with the ups and downs of the market, these traditional financial giants are doubling down on their bitcoin investments, as evidenced by their growing investments, especially those with large bitcoin portfolios. The continued investment by these influential players, as well as the spike in institutional interest at the end of the year, underscores the strength of Bitcoin and its growing popularity in the evolving cryptocurrency market.

Outlook Report 2024: Macro and Cycle, The Road Ahead for the Rise of Crypto  https://www.Hominers.com/

Source: Buy Bitcoin Worldwide

2. 2024 Macroeconomic Forecast
Looking ahead to 2024, U.S. economic indicators signal a possible shift to a strong bull market. The Federal Reserve Board may stop raising interest rates and possibly cut them, which bodes well for the economy, especially in an election year. While the unemployment rate is expected to rise slightly, largely due to changes in the demographics of the labor force, the overall economic outlook remains positive, with GDP expected to grow strongly to 2.5 , driven by stable consumption, disposable income growth, and a resilient labor market.

2024 Outlook Report: Macro and Cyclical, The Road Ahead for the Rise of Crypto

Source: Goldman Sachs Global Investment Research, Bloomberg

2.1 Guiding the Economy to a Smooth Soft Landing
Recently, the Federal Reserve Board (Fed) has been trying to steer the economy through these choppy waters, especially as they try to control inflation. As we overcome inflation, the usual economic rules begin to apply again. One key thing to watch is how rising interest rates may slow economic growth.