South Korean crypto analysts predict the global crypto market capitalization could reach $5 trillion by 2024 according to a recent report.
crypto market cap prediction of $5 trillion
The Korbit Research Center, a South Korea based crypto analysis firm, released a report projecting that crypto market cap could grow to between $4.5 – $5 trillion next year. Jeong Seok-moon, the center’s director, stated the crypto market cap currently stands at around $1.6 trillion as of December 11, 2023.
Factors Driving Anticipated Growth
Analysts attribute the potential growth to several factors:
- Potential U.S. Federal Reserve interest rate cuts
- Regulatory approval for crypto spot ETFs (source)
- Upcoming Bitcoin halving event in April 2024
These events are believed to improve investment sentiment and drive public interest in cryptocurrencies next year. The report also notes that 2024 could see further institutionalization of the crypto market with a focus on tokenized real world assets like real estate and loans.
Regulatory Environment in South Korea
South Korean authorities aim to balance fostering innovation with investor protection in crypto regulations. However, the South Korean crypto exchange market has struggled this year with reduced trading volumes and competition. (source) Upbit, a top exchange, had over 90% market share as of June. Other exchanges like Korbit have eliminated fees temporarily due to competition. (tweet source)