– Brian Armstrong, the head of the cryptocurrency exchange Coinbase, published an article filled with numerous statistical data. Following a significant market correction this year, the value of cryptocurrencies increased by 90%, accompanied by a 60% increase in trading volume in the fourth quarter (Q4). Armstrong highlighted that currently, 425 million people worldwide own cryptocurrencies. Additionally, 83% of the G20 member countries and major financial centres have either implemented or are in the process of developing regulations for the industry. He emphasized that over 100,000 merchants and payment systems worldwide now accept payments in cryptocurrencies, including companies like PayPal and Visa. Armstrong also referenced a report by Circle, according to which the volume of international settlements in stablecoins over the last year exceeded $7 trillion. This indicates that stablecoins are assisting fiat currencies like the US dollar to exist in digital form. In countries with underdeveloped economies, such as Argentina, Brazil, and Nigeria, cryptocurrencies are becoming increasingly popular among the population. People living and working abroad use cryptocurrencies for money transfers. Crypto transfers are on average 96% cheaper than traditional methods and take 10 minutes instead of 10 days, as mentioned in Armstrong's article. Even major financial hubs, London, Switzerland, Hong Kong, and Singapore are transforming into crypto centres to expand employment opportunities in the blockchain and cryptocurrency sector. Brian Armstrong underscored that cryptocurrencies provide people with economic freedom by giving them access to their own money and allowing them to fully participate in the economy, regardless of the limitations of powerful, but outdated, financial companies.
– Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), published a post on X (formerly Twitter) on December 22, addressing the industry's non-compliance with regulations. "There are numerous violations in the cryptocurrency sphere," the post read. "It's a breach of trust resulting in many people being harmed. All they can do is wait for the court to declare them bankrupt." The community instantly reacted to the SEC head's statement, emphasizing that they had long requested the regulator to clarify the specific rules they need to comply with. It is known that Coinbase, the largest American cryptocurrency exchange, has been striving for years to get clarity from the SEC on industry regulations. Billy Markus, the founder of Dogecoin, stated that the SEC Chairman had not established real rules. Markus went on to describe Gensler as "useless in every respect." Brad Garlinghouse, the CEO of Ripple, also commented on Gensler's post. He characterized it as "staggering hypocrisy" and called Gensler "politically accountable" for undermining the integrity of the SEC's requirements. On the same day, the SEC issued a new statement, expressing "deep regret" over some mistakes made by the Commission during enforcement proceedings. Paul Grewal, the Chief Legal Officer at Coinbase, pointed out that the SEC's "regrets" about its mistakes do not negate the fact that its chairman is "intimidating the entire American industry." From a legal standpoint, these regrets hold no significance for any taxpayer or judge.
– Jan van Eck, the head of the eponymous company that also applied to launch a spot BTC-ETF, gave an interview to CNBC. "I cannot imagine any other asset overtaking bitcoin," he stated. Jan van Eck views the first cryptocurrency as the best means of saving and expects BTC to reach a record high in the next 12 months. "Bitcoin has 50 million users. It's an obvious asset that is growing right before our eyes," he declared. The head of VanEck also dismissed the idea that bitcoin is a "bubble." The businessman explained that an asset that consistently surpasses its previous highs in each upward trend simply cannot be considered "inflated."
– Bitcoin will end the year as one of the most profitable assets, largely due to the excitement surrounding applications for bitcoin exchange-traded funds (ETFs). The leading cryptocurrency, having grown by more than 163%, outperformed traditional assets, only falling behind semiconductor giant Nvidia, whose stocks more than doubled amid the artificial intelligence wave. Kaiko Research analysts believe that this year's bitcoin price dynamics can be divided into three phases: an early rally from cyclical lows, a mid-year pause, and a year-end rally, indicating the development of a new bull market. Kaiko points out that bitcoin has long been regarded as a hedge against inflation, a digital alternative to gold, or a completely new asset. However, for most of its history, its price was significantly tied to macroeconomic conditions, the strength of the dollar, and stocks. This year marked a change when bitcoin began losing its correlation with stock indices, including the Nasdaq 100. The most rapid decoupling occurred recently, when the asset surpassed the $40,000 mark, the analysts note.
– According to the forecast of Brandon Zemp, CEO of the consulting firm BlockHash, 2024 will be a favorable year for bitcoin, the launch of cryptocurrency ETFs, and the adoption of regulations for crypto-assets. Zemp, the author of "The Future Economy: A Crypto Insider’s Guide to the Tech Dismantling Traditional Banking," mentioned the collapse of the FTX exchange, the bankruptcy of crypto lenders, and the downfall of some stablecoins. He believes that the failure of crypto projects was facilitated by investors themselves, who bought colourful JPEG-format NFTs and trusted developers creating useless software. "The good news is that cryptocurrencies are here to stay, and wrongdoers are constantly being pushed out of the market. A bullish trend is again on the horizon, and it may be more stable as bad players have been removed from the scene," the head of BlockHash declared. He expressed hope that in 2024, U.S. legislators will be able to bring regulatory clarity to the crypto market. "I would not like everything to be decided in courts. I am hopeful that next year a cryptocurrency bill will be passed. Otherwise, regulators will continue to sink their teeth into the industry, and cryptocurrencies will continue to resist," added Zemp.
– Analysts at the analytical company IntoTheBlock reported that hodlers hold a record number of bitcoins and Ethereum. IntoTheBlock classifies as hodlers those who have kept digital assets for at least a year. According to their data, as of December 24, hodlers owned 70% of the circulating bitcoins and 74% of Ethereum. The chart suggests that hodlers began accumulating coins as early as 2022. In such a market situation, a supply shock could occur. In this case, an increase in the value of digital assets would be inevitable, even with a constant level of demand. IntoTheBlock experts also noted that this year Ethereum lags behind bitcoin in terms of price growth. Since January 1, BTC has increased in price by 163%, while ETH has risen only by 90%. Considering the increasing number of Ethereum blockchain users, analysts believe that in 2024, this altcoin will appreciate more than bitcoin.
– The Reserve Bank of India (RBI) announced that it has not changed its stance and continues to advocate for a complete ban on the use of cryptocurrencies as a means of payment and a tradable commodity. High-ranking government officials have indicated that the central bank sees no significant benefits in issuing licenses to cryptocurrency companies. According to central bank representatives, private cryptocurrencies threaten India's macroeconomic stability, violate the country's monetary sovereignty, expose consumers to risks, and facilitate illegal activities, including money laundering and financing terrorism. Officials assert that, at best, crypto assets should be viewed as gambling. However, the RBI considers it prudent to launch its own digital currency, as a Central Bank Digital Currency (CBDC) would be another tool to stimulate the rapid development of the digital economy. The Reserve Bank of India is confident that a digital rupee will provide consumer protection and serve as an alternative to private cryptocurrencies.
– Investor and bestselling author of "Rich Dad Poor Dad," Robert Kiyosaki, made three key forecasts for 2024. His first prediction is based on the actions of the BRICS countries (Brazil, Russia, India, China, and South Africa), which are expected to introduce their own gold-backed cryptocurrency. This, he believes, will lead to the demise of the US dollar. According to Kiyosaki, bitcoin and precious metals may benefit from this, as investors shift their funds into these assets. "The US dollar will die. Trillions of dollars will return home. Inflation will skyrocket. Buy gold, silver. Next year bitcoin will shoot up to $120,000," Kiyosaki declared. His second forecast suggests that traditional investors, who usually allocate 60% of their funds in bonds and 40% in stocks, will face significant losses in 2024. To safeguard themselves, he recommended reallocating 75% of their portfolio into gold, silver, and bitcoins, and investing the remaining 25% in real estate or oil stocks. Finally, Kiyosaki's third and last prediction is a stark warning about the severity of the upcoming market crash. Rejecting the idea of a soft landing, he asserts that a crash landing is more likely, which could lead to a full-scale economic depression.
– American venture capitalist Tim Draper has speculated that the value of bitcoin might significantly surpass the $250,000 mark in the upcoming year. He believes the route to widespread adoption of this premier cryptocurrency will be paved through stablecoins. Draper explained his confidence in bitcoin's potential, recalling his belief in the cryptocurrency even when it was valued at $4,000. He attributed the slower-than-expected growth of bitcoin to the apprehensions of a rigid U.S. government, acknowledging his underestimation of the United States' conservative stance. Draper, an avid supporter of smart contracts, envisions a future where all financial dealings, including investments, payments, salary disbursements, and tax transactions, could be conducted in bitcoin. He anticipates that stablecoins will act as a critical transitional tool, facilitating bitcoin's mass acceptance. "Stablecoins will remain functional as long as the dollar retains its viability. However, as the dollar's influence wanes, I foresee a shift where people will gravitate towards bitcoin," Draper predicted.
Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.
