Analysts tip 5 catalysts that could break Bitcoin, crypto from its stupor
Analysts tip 5 catalysts that could break Bitcoin, crypto from its stupor

A potential wave of spot bitcoin exchange-traded funds, PayPal’s new stablecoin and key upgrades in ethereum are all catalysts that could wake cryptocurrencies from hibernation.

While the price of bitcoin and other cryptocurrencies in early 2023 has improved from the second half of 2022, the past five months have been softer, Galaxy Digital CEO Mike Novogratz said in June. “Lack of vitality”.

However, analysts told Cointelegraph that they are launching several catalysts that could bring a new spark to the cryptocurrency market.

Henrik Andersson, chief investment officer at Apollo Crypto, is among those eyeing the potential approval of a spot bitcoin ETF, saying it is “unlikely” to see an ETF approved within the next six months.

Institutional acceptance of cryptocurrencies continues to rise, he told Cointelegraph, adding that “the worst of macro tightening appears to be behind us.” He said central banks have paused rate hikes, which means the rate hike cycle may be over.

Andreessen also sees the launch of a stablecoin by PayPal and the possible move by X (Twitter) to incorporate crypto payments into bullish signs for future crypto adoption.

“There are other potential catalysts on the horizon, for example, what is X’s (Twitter) plan for payments and financial applications – cryptocurrencies are a real possibility.”

Markus Thielen, director of research at crypto financial services platform Matrixport, is also betting on spot bitcoin ETFs, but said the upcoming ethereum upgrade is also worth watching.

“Two important catalysts are supporting bitcoin and ethereum prices through the end of the year: the possible SEC approval of a physical bitcoin ETF listed in the US, and ethereum’s EIP-4844 upgrade (expected in Q4 2023). “

The Ethereum upgrade will introduce a mechanism called proto-danksharding, which will lower fees and increase transaction throughput.

in short term

Meanwhile, Tony Sycamore, a market analyst at Singapore-based trading firm IG, told Cointelegraph that investors should focus on the minutes of the Fed’s last meeting.

The Federal Open Market Committee is scheduled to release the minutes of its July meeting on August 16 and is expected to keep interest rates unchanged.

“For bitcoin in particular, it will be watching for signs of stabilization in U.S. equities after Nasdaq’s second straight week of losses, and watching interest rate markets as yields have closed higher for the past four weeks.”

related: Bitcoin has bottomed despite ‘amazing’ price action – analyst

Since mid-March, the bitcoin price has been oscillating in the $6,000 range. Resistance just above $31,000 proved too strong on at least four different occasions, while support at $25,000 was found during the mid-June decline.

Additionally, market volatility has hit record lows as liquidity and trading volumes have dried up in recent months.

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