Michelle Legge
By Michelle LeggeHead of Crypto Tax Education
Updated Apr 19, 2024
This article has been fact checked and reviewed as per our editorial policy.

Is Crypto Dead in 2024?

It feels like every year some expert claims Bitcoin (and crypto) is dead. But with the market turnaround in 2024 and new all-time highs, is crypto dead in 2024?

Following the fallout of FTX, Voyager, and Celsius, as well as several network collapses like Luna and Ronin Bridge, many so-called experts proclaimed the death of crypto. However given the market turnaround, with Bitcoin reaching new historic all-time highs in recent weeks, is crypto dead in 2024?

Is crypto dead?

No. Crypto is far from dead in 2024. Since Bitcoin began in 2009, every year someone has predicted the downfall of crypto, but despite all the adversity faced throughout the so-called crypto winter, the market has bounced back, with Bitcoin reaching a historic high of more than $73,000 in March 2024.

Read next: Is crypto a good investment?

What is a crypto winter?

A crypto winter refers to a prolonged period of declining cryptocurrency values, affecting major players like Bitcoin and Ethereum as well as lesser-known altcoins.

These downturns aren't always synchronized with broader economic recessions or bearish trends in the stock market. Cryptocurrencies, being a relatively nascent asset class, often exhibit independent movements from other financial markets.

Recent crypto downturns stem from factors such as regulatory ambiguity, shifts in market sentiment, and market events. Instances of regulatory crackdowns, adverse media portrayal, and obstacles like scalability issues have collectively contributed to the ongoing downturn.

These factors can significantly impact investor confidence and market dynamics, leading many to adopt a more cautious stance, prioritizing capital preservation. However, despite these challenges, crypto winters follow a cyclical pattern, often followed by periods of resurgence and renewed industry expansion. Moreover, they serve as catalysts for innovation and consolidation within the cryptocurrency and blockchain sector.

Read next: Crypto bull market strategies

What defines a crypto winter?

Other traditional markets have more distinct definitions of what determines a market downturn, but as a newer market, crypto doesn’t yet. For example, in the stock market, a bear market is defined as when prices drop by 20% or more from recent highs. Crypto is far more volatile and prone to drastic increases and decreases though, so this definition may not be suitable to define a crypto winter.

Read next: Crypto bear market strategies

What’s the future of crypto?

Although crypto has been around for more than a decade, in the grand scheme of things, the market is still in its infancy compared to other markets. All this to say, there’s plenty of room for either growth or failure in the future. We can look at both the indicators that the future is bright and the potential risks down the line for crypto to get a clearer picture.

Indicators of a positive future for crypto

There are many indicators of resilience for crypto, including:

  • Ongoing development and innovation in the cryptocurrency ecosystem

  • Advancements in blockchain technology, including projects like Chainlink facilitating interoperability between blockchains

  • Increasing institutional adoption including the approval of Bitcoin ETFs by the US SEC may signify the integration of cryptocurrencies into mainstream financial systems

  • Blockchain technology continues to be adopted by more industries, including major banks embracing blockchain technology

Read next: What's the best crypto to buy in 2024?

Risks for crypto in the future

Of course, there are risks for crypto in the future as well, including:

  • Regulatory challenges such as recent SEC actions against major exchanges like Binance and Coinbase

  • Doubts will always be raised about the legitimacy and long-term viability of cryptocurrencies

  • Obstacles to adoption include regulatory uncertainty, lack of clarity on compliance, and security concerns

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