- Anticipate Positive Developments: Bitcoin ETF approval, halving, and Ethereum upgrades are set to drive cryptocurrency prices higher in 2024.
- Prepare for Market Volatility: Cryptocurrency markets can be highly volatile, so consider dollar-cost averaging to mitigate emotional fluctuations.
- Beware of Airdrop Scams: Be cautious when participating in airdrop activities during bull markets to avoid falling victim to fraudulent schemes. Seek reliable information sources and communities to stay informed.
As we look forward to 2024, the market is brimming with optimism. Various media outlets and investment firms predict that Bitcoin (BTC) could reach at least $60,000, and possibly even $100,000, while Ethereum (ETH) is expected to hit new historical highs of $8,000. Although the exact figures remain uncertain, the consensus is that 2024 will be a record-breaking year, with few believing that prices will fall below current levels. Even the notion of maintaining the status quo seems overly conservative in the current market atmosphere.
One reason behind this optimism is the dramatic shifts over the past year. Initially viewed as the darkest year, many investors deleted their cryptocurrency apps at the start of 2023, shifting their focus away from the investment lows until the end of the year when they realized that prices had quietly risen. The recent quintupling of SOL’s price in just two months has ignited excitement, but also a sense of ‘FOMO’ among those who missed their chance to buy in.
Even more encouraging is the prospect of at least three major positive announcements early in 2024: the Bitcoin ETF, Bitcoin halving, and the Ethereum Cancun upgrade.
The first thrilling news is the SEC has approved the long-awaited spot Bitcoin ETF, easing technical and regulatory restrictions for institutional investors. This pioneering progress potentially attracts more fresh capital to the crypto market and drives up cryptocurrency prices.
The second piece of news to anticipate is the upcoming Bitcoin halving, which is expected to occur in April 2024. Bitcoin’s production rate halves approximately every four years, and each halving in the past has led to astonishing price increases. The halvings in 2012, 2016, and 2020 saw price surges of 80-fold, 4-fold, and 6.5-fold, respectively (with prices skyrocketing from $8,600 to $55,901 within a year in the latest halving). This history fuels investor optimism for this year’s halving.
The final reason for optimism is Ethereum’s Cancun upgrade (Cancun-Deneb), expected to be implemented within 2024. This upgrade will enhance the performance of Ethereum’s second-layer networks, such as Arbitrum and Optimism, potentially reducing transaction costs by 10 to 100 times. Considering the recent transaction fees of $0.08 for Arbitrum and $0.04 for Optimism, a further reduction could render costs nearly negligible.
For users, the Cancun upgrade means not only enjoying lower transaction costs but also stimulating developers to innovate on the blockchain, creating applications beyond finance.
However, looking ahead, despite the hopefulness, we mustn’t be overly optimistic. Holding on to Bitcoin from 2010 until 2024 may seem easy at first glance, but it actually requires a cautious approach. If 2024 turns out to be the bullish market as anticipated, here are some suggestions to prepare for it, aiming to assist readers in achieving better investment performance and readiness.
How to Prepare for the Crypto Bull Market?
1. Cryptocurrency markets are highly volatile
During a bull market, price fluctuations can be extreme. For instance, in the 2021 bull market, Bitcoin’s price halved from its all-time high of $60,000 but later reached new highs. Some may think of waiting for a significant dip to enter the market, but such a wait-and-see approach is distressing as prices rise and makes predicting market trends difficult when prices fall.
2. Regular, fixed-amount investing is more stable
By investing consistently, even amid severe market volatility, one is less affected by emotional swings. However, this approach has the downside of slow asset accumulation; even if prices double in a year, it won’t lead to overnight wealth. This method is particularly suitable for investors not adept at short-term trading.
3. Frequent airdrop events occur during bull markets
These events are meant to encourage participation and provide rewards. However, it’s often scam groups that pay for advertising to lure investors into carefully crafted fraudulent airdrop schemes. To mitigate risk, it’s best to participate cautiously. Dividing your assets into two categories: a wallet for petty cash and a vault for the main assets is recommended. Since airdrops are typically distributed to active addresses on the blockchain, the loss of petty cash is less distressing.
4. The cryptocurrency market is noisy with information
During a bull market, information can be chaotic, and finding a reliable community is vital for accessing trustworthy information. If clear information isn’t available online, asking in reputable communities may provide reliable answers from other users. Knowledge accumulation takes time and effort, but when the bull market arrives, extensive knowledge can help navigate the market and make money more valuable.
As we stand on the cusp of what may be an explosive year for crypto, it is essential to balance optimism with a strategic approach. Investors must navigate the high seas of market volatility, potential regulatory changes, and technological advancements with prudence. Whether it’s through regular investment, vigilant participation in airdrop events, or sifting through the cacophony of market chatter for solid information, the prepared investor is one who can potentially ride the bull market.
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