Despite recent downturns, there are compelling reasons to be optimistic about the crypto market in 2024. This article outlines six key factors that could drive a new bull market for altcoins and the broader crypto space.
Points
- Germany has completed its Bitcoin sales.
- Global liquidity index is rising.
- FTX and Mt Gox repayments will inject funds into the market.
- ETH ETFs are gaining traction.
- The U.S. presidential election could bring pro-crypto policies.
- Potential interest rate cuts in the U.S.
Altcoins have faced significant challenges in 2024, with many seeing their values decrease. However, several factors indicate that this could be the prelude to a new bull market. Here are six reasons to be bullish about crypto for the rest of this year.
1） Germany Done Selling But ETFs Still Buying
Germany has sold all the Bitcoin it intended to, as per Arkham Intelligence. The coins were confiscated by one of the state governments, which had to sell them due to legal requirements. This selling pressure is now off the market, allowing ETFs to continue buying without additional competition.
https://x.com/milesdeutscher/status/1813282795999142006
Liquidity in the global market is increasing, and this is crucial for cryptocurrencies. More money floating in the system means a portion will inevitably find its way to Bitcoin and other cryptos, supporting a bull market.
https://x.com/milesdeutscher/status/1813282944842408102
FTX and Mt Gox repayments are expected to inject significant funds into the market. While some of these funds may lead to selling, much of it is likely to be reinvested into cryptocurrencies, providing a bullish impetus.
https://x.com/nobrainflip/status/1813703005151375624
Ethereum ETFs are gaining traction and are expected to attract more institutional investors to the crypto space. These ETFs will settle in cash, and while this might not directly increase the supply of ETH, it enhances the legitimacy and adoption of cryptocurrencies.
https://x.com/nobrainflip/status/1813703016132059401
The upcoming U.S. presidential election is seen as bullish for crypto. Both candidates are likely to be more favorable to cryptocurrencies than the current administration. Trump’s promise to fire SEC Chair Gary Gensler could lead to a more supportive regulatory environment.
https://x.com/JoeBiden/status/1815080881981190320
Potential interest rate cuts in the U.S. later this year could further increase global liquidity, making borrowing cheaper and stimulating investments in high-risk assets like cryptocurrencies.
https://x.com/milesdeutscher/status/1813283018980925918
解説
- Liquidity: The availability of liquid assets in the market. High liquidity means assets can be easily bought or sold without affecting their price.
- Exchange-Traded Funds （ETFs）: Investment funds traded on stock exchanges, holding assets such as stocks, commodities, or cryptocurrencies.
- Interest Rate Cuts: Reductions in the interest rates set by central banks, which can stimulate economic activity by making borrowing cheaper.