Cryptocurrencies are the most unstable and volatile financial instruments in today's market. The value of some assets can change by thousands of percent in just a few days, a phenomenon rarely seen in traditional financial markets. While this volatility presents unique profit-making opportunities, it also involves high risk.

To mitigate these risks, it's crucial to employ risk management tools, analyze market trends, and consider well-informed cryptocurrency forecasts. Let's review the crypto market landscape in 2023 and explore expectations for 2024, helping investors plan their asset portfolios and trading strategies more effectively.

Crypto Trading in 2023: A Year of Transition

The start of 2023 continued the bearish trend that had dominated the cryptocurrency market for over two years. During this period, Bitcoin’s value hovered around $16,500, the lowest since its peak above $65,000 in November 2021.

A bearish trend in the financial market indicates a prolonged decrease in asset value, opposite to the bullish trend of rising asset prices. Trends are easily identified on charts using D1 timeframes and above.

However, from mid-January 2023, the value of Bitcoin and other altcoins began to rise gradually. By mid-December, Bitcoin reached approximately $47,000, marking a 158% increase over the year. Ethereum, the second-largest cryptocurrency by volume, increased by 86% over the same period.

This upward trend was reflected in the overall market capitalization of cryptocurrencies, which grew by over 107% throughout 2023, signaling an end to the prolonged bearish market and a resumption of bullish momentum.

Several fundamental factors contributed to this shift:

• The end of rising key interest rates by central banks;
• Stabilization of global inflation and government bond yields;
• Introduction of new regulatory tools and elimination of unscrupulous market players, especially after the FTX exchange collapse.

July 2023 saw a significant development when the U.S. Securities and Exchange Commission (SEC) began reviewing requests to launch spot Bitcoin ETFs from major players like BlackRock, VanEck, Invesco, Fidelity Investments, and WisdomTree.

Spot BTC-ETFs, which invest in Bitcoin without the need for wallets or cryptocurrency storage, are a convenient and safe option for individual investors. When investing in a BTC-ETF, you're buying shares that reflect the price of Bitcoin, making it a straightforward way to participate in the cryptocurrency market.

The year 2023 witnessed minimal inflows into stablecoins, suggesting that market liquidity grew organically due to increased demand and participants, rather than from "cheap money."

Future Trends in Crypto Trading

The forecast for cryptocurrencies remains positive for 2024-2025, influenced by several factors:

• The anticipated full launch of spot BTC-ETFs in the first half of 2024;
• The 4th Bitcoin halving expected in April 2024;
• Political and economic activities in the USA related to the presidential elections;
• Developments like Bitcoin staking on the Lightning Network.

Most market participants believe Bitcoin’s value will peak in the fourth quarter of 2024, with the trend likely continuing into 2025.

Views from Major Crypto Exchange Representatives

The CEO of KuCoin predicts that 2024 could mark the beginning of an even more significant bullish movement, expecting new products, strengthened partnerships, and industry mergers to positively impact the market.

Becky Sarvate, Head of Communications at CEX.IO, emphasizes the importance of global regulation. "To truly welcome newcomers, we need to limit jargon and technical language, showcasing the real opportunities in the space...regulation is key to global cryptocurrency adoption," she explains, highlighting the need for new rules and fair play.

Edward Chen, General Manager of Asset and Commercial Operations at Huobi, notes that partnerships with traditional finance players, a strong research team to identify market trends, and risk management tools for users are crucial strategies for maintaining market positions.

Representatives from major exchanges agree that the future will involve active regulation and taming of previously unfair players (referring to Binance), likely making the investment climate more attractive, especially after the high-profile scandals and billion-dollar frauds with Initial Coin Offerings (ICOs) in 2019-2020.

As of late 2023, the cryptocurrency market was valued at just over $1.5 trillion. However, most agree that the full potential is far from being realized. Many analysts predict that in 10-20 years, Bitcoin and many altcoins could be worth hundreds of thousands of dollars.

Conclusion

As we navigate the ever-evolving landscape of Bitcoin trading, it's crucial to choose a broker that aligns with our needs for flexibility, affordability, and reliability. That's where our brokerage, nomo, comes into play, offering a comprehensive solution for those looking to delve into the dynamic world of crypto trading.

At nomo, we understand the importance of having an edge in the volatile crypto market. That's why we offer the ability to trade cryptocurrency pairs with leverage. We also recognize that each trader has unique strategies and preferences. To cater to this diversity, nomo provides flexible settings that can be tailored to individual trading styles and goals. 

Moreover, we're committed to making cryptocurrency trading accessible to a wider audience. With a minimum deposit of just $250, we open the doors to the crypto trading world for many who might have thought it was out of their reach. This low entry barrier, combined with our robust platform, provides an excellent opportunity for traders to embark on or continue their crypto trading journey.