Currently, the cryptocurrency market is experiencing a period of volatility in the value of major cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin and the market has also seen a rise in the number of altcoins, or alternative cryptocurrencies, with unique features and use cases.
There are several growth factors driving the growth of the cryptocurrency market, including increasing acceptance and adoption of cryptocurrencies by individuals and institutions, growing interest in decentralized finance (DeFi) platforms, and the potential for cryptocurrencies to serve as a hedge against inflation and political instability. Inflation occurs as a result of several factors, including:
Monetary Policy: Central banks control inflation through tools such as interest rates and the money supply. An increase in the money supply can lead to inflation when demand for the same amount of goods and services increases.
Demand-driven inflation: occurs when aggregate demand exceeds aggregate supply, causing prices to rise, often during periods of strong economic growth or high government spending.
Cost-induced inflation: Increases in production costs such as wages or raw materials lead to increased prices for goods and services.
In addition, advancement in blockchain technology and increasing use of cryptocurrencies for cross-border transactions are also contributing to the growth of the market. So it is expected that the cryptocurrency market will continue to grow in the coming years.
The increasing adoption of cryptocurrencies by businesses and individuals, coupled with the continued development of DeFi and other blockchain-based platforms, is likely to fuel this growth. However, the market may witness fluctuations and corrections, as is usual in any emerging and rapidly developing market, and one of these expectations is that revenues in the cryptocurrency market will reach 5.2 million US dollars by the end of 2024.
Revenues could also record an annual growth rate (CAGR 2024-2028) of 6.67%, leading to an expected total amount of US$6.7 million by the end of 2028.
Note that the average revenue per user in the cryptocurrency market reaches $17.1 by the end of the year.
Statistics from a global comparison perspective indicate that the highest revenues reached in the United States were ($23,220.00 million until April 2024).
So, the number of users in the cryptocurrency market is expected to reach 357.30 thousand users by 2028.
Therefore, the user penetration rate will reach 16.40% in 2024 and is expected to reach 18.24% by 2028.
As for prices, Bitcoin (BTC) is expected to reach a new record high of $88,000 (82,000 euros) over the course of the year, before stabilizing at around $77,000 at the end of 2024, according to a new report.
The current price of the cryptocurrency is around $86,000.
It found that the average price of Bitcoin is likely to reach $87,875 by the end of 2024, and some experts expect it to rise to $200,000.
On the flip side, the average lowest price Bitcoin could reach by the end of 2024 is $35,734, the report said, with some predicting it will drop to $20,000.
A halving event refers to a period every few years in which the reward for mining Bitcoin transactions is halved. As it stands, those who validate Bitcoin transactions currently receive 6.25 BTC, which could drop to 3.125 as halving events cause supply to decrease, with fewer Bitcoins available, causing prices to rise.
On the other hand, many experts expect there will be more buyers in the market after the US Securities and Exchange Commission recently approved 11 Bitcoin exchange-traded funds (exchange-traded funds), making it easier for individual investors to trade Bitcoin-related investment funds on US exchanges.
The price could rise further once the US Federal Reserve lowers its historically high benchmark interest rate, with analysts expecting more liquidity to flow into Bitcoin as a result. However, John Hawkins, a senior lecturer at the University of Canberra, believes the cryptocurrency is still just a bubble. Speculation.
There are statistics that indicate that Bitcoin is expected to rise to $122,688 (€114,310) in 2025 and $366,935 (€341,878) in 2030. However, the mean lump, which is a statistical measure of central tendency, puts the expected price at around $220,708 (€205,636) by 2030.
Overall, the majority (58%) of Bitcoin Expert members believe that now is the time to buy Bitcoin; Therefore, 38% of them advise keeping it, while 5% of them support selling.
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