The world of trading is ever changing, shape-shifting quickly in the face of economic uncertainty and evolving geopolitical and technological factors – so it’s little wonder it has seen so much upheaval over the past few years. Back in 2019, cryptocurrencies like Bitcoin and Ethereum were constantly hitting the headlines as they reached all time highs in value, quickly making cryptocurrencies one of the most popular assets amongst both seasoned and amateur investors. But since then, things have been rather turbulent, and it’s not just digital assets like these that have borne the brunt of the various types of global instability being faced.
There’s no denying it’s been a tough few years for the financial markets, but for traders, there have been some great opportunities for those prepared to play the long game, and as economies continue to gain ground over the next twelve months, those who made the right moves could be about to see them come to fruition.
In 2024, we’ll take a more sustainable approach to investing and further leverage advancements in artificial intelligence, with trading platforms like Trader AI offering enhanced signalling capabilities as well as a range of other tech innovations – and, as global economies finally make some headway in their post-Covid economic recovery, things could look very different over the new year ahead. Here, we take a look at the top trends we can expect to see reshaping financial markets and changing the trading game in 2024.
Artificial intelligence to take centre stage
There isn’t an industry that the evolution of artificial intelligence (AI) technology hasn’t revolutionised over recent years, or at least got the ball rolling with a view to doing so. In trading, AI and machine learning are already playing a significant role, with AI-driven systems now possessing an impressive ability to analyse market sentiment and news more rapidly than humans can. By processing such enormous amounts of data in real time, they are paving the way for faster and more efficient trading for those who use them, and as AI continues to be integrated into the top trading platforms in new ways, it’s set to transform the way we make those big moves in 2024 and potentially, enhance financial returns as a result.
Cryptocurrencies will mature
Having cemented their status as a mainstream asset class, cryptocurrencies are here to stay and as the market begins to stabilise following several years of dramatic turbulence, our appetite for them is expected to continue into 2024 and far beyond. Regulatory clarity and institutional adoption are set to be huge driving factors in their growth next year, and with the capabilities of blockchain – the technology that underpins them – become increasingly better understood and applied more widely, their value is only set to surge in the long run. Beyond leading digital assets like Bitcoin and Ethereum, we’ll see stablecoins, NFTs and decentralised finance (DeFi) offering new opportunities in cryptocurrency trading, and all in all, it’s likely to be an exciting year that is ripe with possibilities.
DeFi will gain ground
On that note, the DeFi sector is likely to gain impressive momentum in 2024. Leveraging blockchain technology to create financial services outside of the traditional banking system, platforms are already serving up lending, borrowing and trading opportunities without the need for intermediaries, and their capabilities will expand further over the coming months. While currently, they remain somewhat niche, next year, we’ll see them becoming increasingly user-friendly in a bid to attract a wider range of users, but unsurprisingly, it is likely to face some regulatory scrutiny along the way. This could slow down its pace somewhat, but overall, we’ll see DeFi flourish.
Regulation will take the spotlight
So it goes without saying, then, that there will almost certainly be a greater focus on regulation across the board in 2024. Increasingly, authorities are scrutinising financial markets in order to ensure operations are both fair and transparent, and for traders, this could mean reporting requirements are increased and there will be a more robust set of rules to adhere to. Self regulation, too, will gain momentum, with trading platforms and other industry organisations creating their own codes of conduct to ensure integrity is maintained.
Disclaimer: Investing money carries risk, do so at your own risk and we advise people to never invest more money than they can afford to lose and to seek professional advice before doing so.
