Crypto Market Outlook 2024 : The Potential of Altcoins in the Wake of Bitcoin ETFs
The year 2024 started on a high note with the groundbreaking approval of spot ETFs for Bitcoin by the U.S. Securities and Exchange Commission (SEC). Despite Bitcoin’s stable pricing in the $45K-$47K range, the altcoin market witnessed a surge, notably Ethereum Classic (ETC) soaring by 48%, leading the way for other major altcoins such as Ethereum (ETH), Cardano (ADA), and Avalanche (AVAX) with double-digit gains.
The recent surge in altcoin prices seems to be fueled by rising expectations within the crypto community regarding the SEC’s potential approval of spot-based ETFs for major alternative cryptocurrencies. Crypto analyst Lark Davis, popularly known as “Crypto Lark,” speculates that Ethereum spot ETFs might receive approval around May, representing a significant step forward for the second-largest cryptocurrency. Even Bloomberg analyst Eric Balchunas has predicted a 70% chance of Ethereum ETF in May.
Having said that, A16Z general counsel Miles Jennings suggests that the SEC’s approval of Ethereum futures products implies a favorable stance on Ethereum not being categorized as a security.
Plus, Crypto Lark has also noted the possibility of an XRP ETF in the future, considering the landmark ruling in the Ripple SEC lawsuit, which determined that XRP is not a security. The crypto community eagerly awaits the next big ETF approval after Bitcoin, with Valkyrie Funds’ co-founder and chief investment officer, Steve McClurg, hinting at the potential for Ethereum or XRP ETFs.
Altcoin Boom in 2024—Incoming?
Moreover going beyond these developments, 2024 holds other significant events, including the Ethereum Dencun upgrade and the Bitcoin halving. Analysts predict an unprecedented altcoin boom in 2024, with Lark Davis envisioning it as “the biggest altcoin party ever seen.” This optimistic outlook is partly fueled by the historical precedent where the approval of BTC futures funds by the SEC led to a remarkable rally in altcoins, surging over 500%.
If this historical trend repeats, Ethereum, XRP, and other altcoins could see substantial growth in 2024, potentially overshadowing Bitcoin in terms of market dominance. Overall, the crypto community is poised for a year filled with anticipation, driven by regulatory advancements and key events shaping the trajectory of various cryptocurrencies.
