Renowned analyst Ted (@tedtalksmacro) has offered a detailed forecast for 2024 in the crypto market. His analysis on X (formerly Twitter) touches on several critical points, from macro events, the Bitcoin Halving to fresh liquidity in the market.
This is going to be quite a long post, summing up 2023 and looking ahead to the themes to watch if you’re investing in 2024 – so please bare with me 🫡
✅ Summing up 2023
– China printed almost $1 trillion dollars but failed to push their economy out of the dumps
– US…— ted (@tedtalksmacro) January 11, 2024
#1 Spot Altcoin ETFs
Following the approval of spot Bitcoin ETFs and the anticipated approval of spot Ethereum ETFs, there is an expectation for a broader range of altcoin ETFs to emerge. Ted believes that the success of these initial ETFs will pave the way for more proposals and approvals, potentially by 2025.
He states, “The SEC has laid the precedent for many other crypto products to be proposed and approved, opening up even more avenues for large capital inflows into the crypto asset class.” Ted specifically mentions Solana and XRP as likely candidates for future ETFs. This development is seen as a significant step in attracting substantial capital inflows into the crypto asset class.
#2 The Federal Reserve Ending Quantitative Tightening
Ted forecasts that the Federal Reserve might cease or significantly slow down its current quantitative tightening (QT) program by Q3 of 2024. This prediction is based on the declining cash balance in reverse repos and aims to avoid a repeat of the funding stress experienced in 2019.
“An end to or a dramatic slowdown of the current QT programme could come even earlier though, given the scars of what happened back in 2019 following the monetary tightening of 2018,” he predicts. An end to QT could inject more liquidity into the market, potentially benefiting crypto assets.
#3 Resurgence Of Liquidity In Crypto
After a challenging period of 18 months marked by the collapse of crypto funds and exchanges and central bank tightening, Ted anticipates a return of liquidity to the crypto space. He points to stablecoin liquidity deltas approaching positive territory and the role of spot Bitcoin ETFs in attracting new capital, especially from investors seeking higher returns amid inflationary pressures.
#4 Bitcoin’s Halving Event
The anticipated Bitcoin halving in April 2024 is expected to create both a supply shock (due to…
Click Here to Read the Full Original Article at NewsBTC…
