Why Crypto Is About To Skyrocket?

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As a seasoned researcher with a deep understanding of the crypto market and its intricacies, I am bullish on Bitcoin and other cryptocurrencies despite the current macroeconomic conditions. My extensive background in finance and economics has given me a unique perspective on the crypto space, enabling me to identify trends and patterns that are often overlooked by others.

Despite macroeconomic and other influencing factors that have previously restrained Bitcoin and altcoins’ prices from gaining significant attention, the cryptocurrency market is on the brink of experiencing exponential growth. This surge is driven by numerous concurrent developments, which strengthens the optimistic perspective for the crypto sector. Notably, industry insiders predict this could lead to an unprecedented short squeeze event in the history of finance.

Reasons Why Bitcoin and Crypto Market About To Explode?

As a researcher studying the cryptocurrency market, I’ve been closely following the insights of Brian Dixon, CEO at Off the Chain Capital. According to him, we’re on the brink of a significant breakout or explosion in the crypto sector. He cites numerous factors that are empowering bulls and fortifying their influence within the market.

1. Donald Trump’s Lead in Presidential Race

As an analyst, I’ve observed that the resilience of Bitcoin’s price remains unaffected despite the failed attempt on Donald Trump’s life. Trump’s stance towards cryptocurrencies has gained momentum in recent months, and his campaign has embraced crypto donations. In fact, they have amassed over $3 million through this innovative funding method.

Following the assassination attempt on former president Trump, financial expert Brian Dixon anticipates a faster adoption of digital assets, resulting in increased investments in Bitcoin and other cryptocurrencies. Additionally, he made public his support for Bitcoin by announcing pro-Bitcoin figure J.D. Vance as his vice presidential pick.

JD Vance owns a substantial amount of Bitcoin, estimated between $100,000 and $250,000. He strongly disapproves of strict crypto regulations. Vance criticizes Gary Gensler for intertwining politics with securities regulation. He has voiced worries about Gensler’s methods for overseeing blockchain technology and cryptocurrencies. In his view, the Securities and Exchange Commission (SEC) is inadvertently stifling the industry by driving innovation beyond US borders, unaware of the potential benefits of diverse crypto tokens.

As a cryptocurrency market analyst, I’m thrilled to share the exciting news that Donald Trump has announced his intention to attend and deliver a speech at the Bitcoin Conference taking place in Nashville, Tennessee from July 25-27. This groundbreaking event marks a significant milestone for the crypto industry.

2. Spot Ethereum ETF Approval

As a crypto investor, I’m excited to share that Ethereum ETFs have received a preliminary green light from the U.S. Securities and Exchange Commission (SEC). Some of these ETFs are predicted to commence trading as early as Tuesday, July 23. According to Bloomberg ETF analysts, this development might lead to an uptick in market buying activity.

According to Brian Dixon’s perspective, the demand for Ethereum Exchange-Traded Funds (ETFs) is expected to mirror that of Bitcoin ETFs. The listing and trading of Ethereum ETFs will provide a more convenient entry point into Ethereum markets, potentially influencing its price in the long run. Furthermore, he views this development as a promising sign for prospective ETFs based on other cryptocurrencies such as XRP and Solana.

3. TradeFi Investments in Bitcoin

As a researcher studying the trends in the financial market, I’ve noticed an increasing acceptance of Bitcoin and other cryptocurrencies among Traditional Finance (TradFi) institutions, as evidenced by their investment in spot Bitcoin Exchange-Traded Funds (ETFs). This development opens up new opportunities for retail investors like myself. We can now invest in Bitcoin through these ETFs using our regular brokerage accounts or apps. Consequently, the popularity and adoption of other digital assets are also on the rise. I believe this trend will continue to gain momentum over time.

According to data from Apollo Satellite’s analysis, approximately 154 entities have submitted the required documentation, known as a 13F filing, to the U.S. Securities and Exchange Commission (SEC). Nearly 80% of these institutions have boosted their investments in Bitcoin exchange-traded funds (ETFs), while just over 12% have reduced their exposure to spot Bitcoin ETFs.

4. Solana And Other Crypto ETFs

Previously, the SEC had taken a very conservative stance towards approving Exchange-Traded Funds (ETFs), especially those based on cryptocurrencies like Ether. However, there has been a significant change in the regulatory landscape at the SEC, with representatives reportedly engaging with potential ETF issuers to move forward with the approval process. It is predicted that applications for Solana-based ETFs will be under consideration in the year 2025.

Sovereign wealth funds, pension funds, and endowments are expected to significantly increase their investments in crypto Exchange-Traded Funds (ETFs), according to Brian Dixon’s analysis. However, these institutions have a rigorous investment process that can take up to 12-18 months before they can allocate substantial resources to Bitcoin ETFs.

At present, there’s growing anticipation for an XRP ETF following Ripple CEO Brad Garlinghouse’s remarks. This comes after CME and CF Benchmarks unveiled new XRP reference rates and real-time indices. Notably, the value of XRP has surged by over 40% within a week.

5. Fed Interest Rate Cuts

The international cryptocurrency market has experienced a surge in purchasing interest as a result of increased inflows into Bitcoin ETFs, greater buying from both institutional and individual investors, and robust technical and on-chain indicators. The total value of the crypto market currently stands at approximately 2.38 trillion dollars, with Bitcoin’s price hovering around $65,000.

As a researcher studying the financial markets, I’ve noticed a shift in the Federal Reserve’s stance towards monetary policy with Chair Jerome Powell expressing a more dovish view on potential rate cuts this year due to cooling inflation and a slowing labor market. Consequently, traders are now anticipating a rate cut as early as September. Similarly, Wall Street giants have made the same prediction. Furthermore, crypto research firms like Matrixport have reported an upsurge in positive momentum for cryptocurrencies, indicating that this trend is likely to persist for an extended period.

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2024-07-17 16:38