Markets
US Crypto Market Expected to Reach $32.9 Billion by 2028
A little over fifteen years after their introduction into the world of finance, cryptocurrencies have now become commonplace. With Bitcoin leading the way, the crypto market is growing in several developed countries, including the United States.
According to data recorded in 2023, 17% of American consumers’ savings are made in cryptocurrencies. It is the second most popular savings method in the United States. This shows how invested the American population is in a multi-billion dollar industry. It is for this reason that financial experts are taking a keen interest in the market and reviewing its projections for the coming years. Currently, they are forecasting unprecedented growth over the next four years, which is good news for crypto users.
Current data shows that the US crypto market will be valued at $32.9 billion by 2028. This would represent an annual growth of 9.10% over the next four years. That’s not all, because user penetration at best crypto casino sites is expected to reach 29.12% as more users begin to see the benefits of using these sites over standard online casinos.
In this guide, we will shed some light on these numbers. We’ll examine the factors propelling this growth, potential obstacles, and its impact on the U.S. crypto industry and the country’s economy.
History of the cryptocurrency market in the United States
Before we look at the future of the market, it would be good to learn lessons from its past. And we can all agree that history is the best teacher.
The history of cryptocurrency in the United States dates back to the emergence of Bitcoin in 2009. During its early years, the market experienced significant volatility, leading to excitement and caution among traders and investors . Many would agree that this is the case so far, as prices still fluctuate.
Looking back, the central point is that the government is actively involved in the development and regulation of cryptocurrencies. One example is the 2014 Internal Revenue Service (IRS) ruling that Bitcoin is taxed as property. Another example is the 2022 framework granting regulatory authority to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The SEC already regulates the industry, as evidenced by its long list of filings against crypto-centric companies and projects. However, the ongoing battle between regulators and the cryptocurrency industry demonstrates that the United States continues to grow, regardless of the frameworks implemented.
The current state of the crypto market and the factors driving projected growth
The income in the global cryptocurrency market is expected to reach $51.5 billion this year. The United States will be a major player, contributing more than 50% to this growth. This is great news as 2024 is an eventful year for the market, with the recent BTC halving and an expected bull run.
If you’re a crypto enthusiast, you know that the bull run won’t last forever. Why, then, do experts predict the market will surpass $30 billion in the next four years? Well, there are other things that contribute to the growth rate. These include institutional adoption, growth in retail investments, technological advancements, etc.
Let’s take a closer look at these factors to get a better understanding.
Increase acceptance and adoption
The crypto industry has only been around for fifteen years. During this period it has developed remarkably but has not yet reached its full potential. With the crypto market growing daily and the number of people interested in digital assets increasing, we can expect an increase in their adoption.
The cryptocurrency market overview reveals that individuals and businesses will turn to cryptocurrencies in the coming years because they are secure and efficient. It will also serve as a hedge against inflation. For US businesses expanding into new horizons, cryptocurrencies would be beneficial due to lower transaction fees.
Technological advances
Technology is key to advancing the cryptocurrency market. As blockchain technologies become more innovative, the scalability and speed of crypto transactions improve. This will be reflected in the market revenue growth. Additionally, cryptocurrencies would be integrated into more industries, such as real estate and digital content creation.
Areas where technological advancements are expected include DeFi (decentralized finance) and NFTs (non-fungible tokens). Their use cases would primarily be smart contracts, decentralized applications (DApps), and asset tokenization. These aspects of blockchain technology will open new avenues of investment and application, attracting a new generation of investors.
Regional factors and regulatory developments
In the United States, the crypto market is influenced by various regional factors and regulatory developments. Even though the country has major players in the sector, regulatory clarity remains a challenge. The Securities and Exchange Commission (SEC) has attempted to crack down on several crypto initiatives, which has created uncertainty for investors and businesses.
The SEC has not been successful in its efforts and is expected to compromise its regulations. This compromise might not be favorable to the industry, but it would allow Bitcoin Exchanges enter the US market, bringing healthy competition and maturity to the industry. This, in turn, would increase the number of investors and lead to increased revenue.
Potential challenges and risks
Despite the optimistic outlook from industry experts, the path to $32.9 billion is fraught with challenges. The crypto market is filled with ups and downs, and as we have looked at the ups, we must also look at the potential downsides. Let’s briefly review the potential risks.
Regulatory uncertainty
The major problem in the United States must be the regulatory framework. The SEC is currently in a tug of war with crypto-centric companies and projects over their crypto products and services. If this becomes a theme in the country, it could potentially deter investors and slow market growth.
Market Volatility
Market volatility is another major risk. Cryptocurrencies are known for their dramatic price fluctuations. While this volatility can lead to high returns, it can also lead to substantial losses. This inherent risk makes cryptocurrencies an unstable investment. If the slowdown is significant, it could dampen market growth.
Final Thoughts: Future Outlook and Impact on the Economy
Beyond 2024, the future of the US crypto market looks promising but uncertain. Potential trends include the widespread adoption of cryptocurrencies, the development of crypto regulations, and the integration of blockchain technology across various industries.
Economically, this could lead to job creation and new investment opportunities. On a societal level, cryptocurrencies could democratize finance by providing access to financial services to those who are currently unbanked.
The projection that the US crypto market would reach $32.9 billion by 2028 is based on current trends and factors. Although challenges exist, the potential benefits to the economy and society make this a development worth monitoring.