Coinbase predicts an optimistic outlook for the crypto market in 2024, according to

© Reuters Coinbase predicts an optimistic outlook for the crypto market for 2024

In a recent report, Coinbase (NASDAQ: ) provided an optimistic outlook for the crypto market in 2024. Titled “Coinbase 2024 Crypto Market Outlook,” the report highlighted the resilience and potential growth of cryptocurrencies despite the challenges they faced in the past year.

According to the report, the total market capitalization of cryptocurrencies has doubled in 2023, indicating that it has already ended its “winter” and is now in the middle of a transition.

“However, we think it would be premature to label this or see the positive performance as a vindication against cynics who reveled in the vastly exaggerated demise of cryptocurrencies. What is clear, however, is that despite the headwinds heading into the asset class, the performance we’ve seen in the past year has exceeded expectations. They are proof that cryptocurrencies are here to stay. The challenge now is to seize this moment and build something better,” the report said.

Key themes for 2024:

Institutional Bitcoin Investments: Coinbase predicts that institutional flows into cryptocurrency will continue to focus primarily on Bitcoin until at least the first half of 2024. This trend is expected to be driven by the growing interest of traditional investors in the crypto market.

Favorable macro tailwind and regulation: The report predicts favorable macroeconomic conditions for risk assets in 2024. More importantly, it predicts continued efforts to create regulatory frameworks for cryptocurrencies that will facilitate long-term adoption.

Development of real-world use cases: Another significant trend highlighted is the constant effort of developers to create real applications for cryptocurrencies, the basics of which are already obvious.

Improving user experience: Finally, Coinbase underscores the importance of improving the user experience in the crypto space, the foundations of which are being built. The report suggests that improvements in this area will be key to moving from early adopters to mainstream users.