In recent months, the crypto industry has demonstrated unfailing dynamism. Towards the end of last year, most assets regained some strength. While this trend is expected to continue in 2024, several risks that could spoil the party should be remembered, particularly for investors.
Crypto between price instability and regulatory constraints
According to several recent projections, the crypto market should be in its best shape in 2024. Based on the dynamics of this market in recent months, they expect a certain resurgence of this sector after several deleterious months.
The historic approval of the first Bitcoin Spot ETF appears to have set the tone for this optimistic projection. For example, bitcoin (BTC) rose above the $45,000 threshold following the announcement of this news.
Yet the asset has since fallen back to around $43,000. A strong signal of this risk which still hovers over crypto namely price instability. This is something that every investor must keep in mind as one of the the most salient risks in crypto in 2024.
Indeed, cryptos can undergo significant fluctuations. Which would lead to significant losses for investors. The latter may also be the consequence of regulatory constraints knowing that strict regulatory standards often hinder market growth. This, by complicating investors’ access to cryptos.
Crypto and risks of fraud, cyberattack and competition
The risks of fraudsof cyberattacks and of competition The three of them represent recurring threats that the crypto industry will face throughout 2024. If there will be a resurgence of crypto in 2024, it is because these threats have been overcome or at least controlled.
It should be remembered that the crypto market still constitutes fertile ground for fraudulent activities. In 2022, for example, these malicious operations caused more than $4 billion in losses to investors.
At the very least, hackers are expected to continue to fuel these fraudulent transactions by exploiting vulnerabilities in exchanges or user wallets. This is to steal their assets. It is therefore not excluded that this dynamic will continue in 2024.
Although it must be recognized that in 2023, losses caused by hacks, scams and crypto exploits have halved to $2 billion. The ever-present threat seems to be diminishing. The same cannot be said for the rivalry within the crypto market driven by the constant arrival of new projects. This constant competition could lead to downward pressure on prices and hinder crypto innovation, vital to the evolution of the sector.
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