2024 Outlook - What could be the next catalysts for the bull market?
What are the new innovations in the sector that could encourage people to acquire coins at any cost?
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Dear member of our community,
I hope this message finds you well and that you are closely following recent developments in the world of cryptocurrencies. We are excited to share with you some key insights into the evolution of this market.
Several external factors are favorable for Bitcoin
We are currently in a bull market that started in January 2023, largely fueled by the 13 Bitcoin ETF requests from institutions such as BlackRock, Fidelity, and Vanguard.
The imminent arrival of a new class of investors, combined with the global economic context in recession (the possibility of a rate cut by the FED in the first quarter of 2024), are catalytic factors exerting a positive influence on the market.
What will be the next internal catalysts for the market?
Despite an external environment that has become favorable to the cryptocurrency market and the anticipation of the next Bitcoin halving scheduled for April 2024, a question lingers in my mind. In my opinion, we have not yet identified triggering elements capable of fully confirming that we are in a new sustainable bullish phase.
I am referring here to new innovations in the sector that will encourage people to want to acquire coins at all costs. Let's explore together what were the driving forces behind previous bull markets to imagine what future prospects might be.
Bullrun of 2012-2013
External trigger: the start of QE3 by the FED marked a key period in this bullish phase. Quantitative easing played a role in shaping the market.
Internal trigger: Bitcoin, heavily used on the dark web, grabbed media attention with the Silk Road website seizure by the FBI. This exposure attracted the first serious investors who saw the potential for peer-to-peer exchanges outside of the financial system.
Bullrun of 2016-2017
Internal trigger: the emergence of ICOs (initial coin offerings) was a real turning point, causing a significant migration of traders from Wall Street to the cryptocurrency market. A colossal amount of $5.6 billion was raised during this period, shaping the first major bull run.
Bullrun of 2020-2021
External trigger: the impact of COVID-19 prompted central banks to lower rates and print money massively. Remote work became the norm, and the digital world took a prominent place in people's daily lives who could now understand the need for digital money and property.
Internal trigger: the first experiments with DeFi (decentralized finance) paved the way for a new wave of users seeking high yield, boosting the popularity of liquidity pools and staking platforms, especially on Ethereum network and other altcoins.
The Current bull run (2023 to 20??)
Let's explore together what the internal triggers could be, based on recent developments and activity in the last months:
1- Ordinals (tokens and NFTs on Bitcoin)
This concept, which emerged in early 2023, is already sparking passionate debates within the Bitcoin-supporting community. Indeed, transactions related to the publication of Ordinals on the network have significantly increased, to the detriment of traditional users who have seen transaction fees rise.
The future of tokens and NFTs on the Bitcoin network will depend not only on user choices but also on whether developers decide to make new updates that make this type of transaction impossible. For now, those who benefit the most are miners, whose income has increased significantly over the year.
2- DeFi on Bitcoin
Recent developments in 2023 suggest a growing interest in the development of decentralized financial platforms on the Bitcoin network. With the majority of BTC not moving from their wallets for over 5 years and the fact that bitcoiners tend to hold theirs coins for a really long time, derivatives on Bitcoin network make more sense, reinforcing the security of a network approaching $1 trillion in value.
Parallel networks such as the Lightning Network or Stacks (STX) are key elements to watch.
3- AI agents (artificial intelligence)
In 2023, AI was at the center of debates with the introduction of multiples ground breaking tools and services such as ChatGPT and Midjourney. The use of AI agents to perform online tasks offers immense potential. Remuneration in cryptocurrencies, without requiring intermediaries, opens up new perspectives and business models.
4- Adoption of cryptos in video games (GameFi)
The increasing integration of cryptocurrencies for the exchange of digital items and advertising in video games offers exciting opportunities to explore. This convergence could redefine the gaming experience, allowing players to monetize their digital items and achievements outside of games and in the real world.
5- What about a brand new unexpected concept?
As in the last bullish phases, it's the introduction of new ways to interact with cryptocurrency that has stimulated user enthusiasm. Thus, the emergence of a new concept or an innovative business model would be the dream scenario for the community.
In any case, the market needs new user-friendly platforms, as systems remain relatively complex for the general public.
In summary, it is important to stay aware of the next innovation in crypto because this one may shape the current bull market.
Julien Mbony
CEO @ ValeoX
To buy, sell, or if you have any questions about ValeoX services, we invite you to email us at info@valeo-x.com, call us at 581-980-3779, or reach out to me on Telegram (@jmbony).