Bitcoin

4 Catalysts That Could Fuel the Next Crypto Rally

Published

8 months ago

25 May, 2024

BlockChainGuardian Staff

4 Catalysts That Could Fuel the Next Crypto Rally

Bitcoin is up over 60% in 2024, driven by January crash spot ETF approval and the recent halving event.
Developers have been working to add functionality to the Bitcoin network, which could increase prices.
The red-hot crypto could also get a boost from interest rate cuts, looser regulation and the November elections.

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Bitcoin achieved records this year thanks to two catalysts: the spot ETF approvaland the recent halving event. The red-hot crypto is up more than 60% year-to-date on Friday, trading about 6% below all-time highs reached in March.

Although both drivers are expected to maintain pushing the price of bitcoin up, they are now in the rearview mirror and investors are wondering where to look for more upside. According to analysts, there are many ways in which the price of bitcoin could continue to rise.

Four future catalysts are detailed below:

1. Interest rate cuts

Investors are focused on the Federal Reserve’s outlook for rate cuts, anticipating that stocks could rise as a result. The same dynamic applies to bitcoin, which has traded as a speculative asset that appreciates when borrowing costs are lower.

In fact, 2021’s ultra-low interest rates are largely what pushed bitcoin to a record that year. The recovery then reversed when the Fed began its monetary tightening campaign.

“In the first quarter, we had the halving coming up, but mainly we had a huge adoption of ETFs. So as that gets priced in, now you’re looking at what the Fed can do,” said Galaxy CEO Mike Novogratz. told Bloomberg earlier this month.

Until short-term interest rates ease, bitcoin will likely remain in the $55,000 to $73,000 range, he said.

2. Changing regulations

At this point, the crypto community is also seeking coherence on the regulatory front, which has proven to be a frequent obstacle for bitcoin. For example, the eventual approval of spot ETFs by the Security and Exchange Commission was preceded by a judicial loss.

But legal sentiment around crypto appears to be adjusting. A future bitcoin catalyst could be the future stable currency note, Oppenheimer CEO Owen Lau told CNBC in early May. It could happen later this year.

Meanwhile, the US House of Representatives has just passed a broad regulatory framework for the crypto industry, which is being hailed as a victory for the sector. While its fate is unclear in the Senate, it would offer clearer rules to the cryptosphere.

3. November elections

But real regulatory clarity will come after the presidential election, Novogratz said. He noted that Republican nominee Donald Trump has been a growing voice of support for the industry, in contrast to President Biden’s policies.

In a May note, Standard Chartered’s Geoff Kendrick also said a Trump victory would be broadly positive for bitcoin.

He added that increased concern surrounding the US deficit and debt trends It will also likely boost bitcoin as investors begin to look for alternative investments. That could happen with both candidates, as neither has offered a plan on how to handle government spending, Kendrick said.

4. Expanded use

While perspectives on bitcoin are changing, the cryptocurrency itself is undergoing something of a makeover.

According to Bloomberg, developers have been working hard to add functionality to the bitcoin network. These efforts seek to make crypto more than just a speculative asset to hold, and with projects quickly coming online, they could offer another catalyst.

For example, the recently launched Ordinals protocol allows users to store more than just bitcoin on the BTC blockchain, but start trading assets like non-fungible tokens. The Ordinals market has already seen daily trading volume reach $3.42 million in mid-May, said Bitget managing director Gracy Chen. wrote on X.

“The advent of Ordinals in Bitcoin in 2023, the later created BRC-20 token standard, and now the Runes token standard have helped drive interest in thinking about Bitcoin as a platform network, not just a monetary network.” Galaxy wrote in a note. And now, those projects are attracting considerable attention from venture capitalists, he said.

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BlockChainGuardian Staff

We are the editorial team of BlockChainGuardian, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on BlockChainGuardian, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Bitcoin

‘This is huge’ — Billionaire Mark Cuban issues ‘incredible’ Bitcoin and crypto prediction amid price slump

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

'This is huge' — Billionaire Mark Cuban issues 'incredible' Bitcoin and crypto prediction amid price slump

Bitcoin
Bitcoin
came back with a vengeance this year when former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.

Subscribe now to Forbes CryptoAsset and Blockchain Consultant and “discover blockchain blockbusters poised to generate 1,000%+ gains” after the bitcoin halving earthquake!

The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcointhough it fell again this week, falling below $65,000 after the Federal Reserve kept interest rates steady.

Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.

Sign up for free CryptoCodex now—A daily five-minute newsletter for traders, investors, and crypto curious people that will keep you up to date and ahead of the bitcoin and crypto bull market

ForbesElon Musk Suddenly Breaks His Silence On Bitcoin After Issuing Shocking Warning Of US Dollar “Doom” That Could Trigger Cryptocurrency Price BoomBy Billy Bambrough

Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.

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The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.

“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.

“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”

John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”

Sign up for CryptoCodex now—A free daily newsletter for the crypto-curious

ForbesCryptocurrencies Are Suddenly Bracing For A ‘Very Major’ U-Turn In China After Wild Price Swings For Bitcoin, Ethereum, XRPBy Billy Bambrough

Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.

Forbes Digital Assets

Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.

According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”

The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.

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Bitcoin

MicroStrategy’s Cash Flow Amid Bitcoin Rally Raises Some Eyebrows

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

MicroStrategy’s Cash Flow Amid Bitcoin Rally Raises Some Eyebrows

Analysts are starting to pay more attention than usual to Bitcoin-proxy’s underlying enterprise software business MicroStrategy Inc.

How to better invest cash generated from operations is what originally prompted co-founder and CEO Michael Saylor to turn to Bitcoin four years ago. Since then, the Tysons Corner, Va.-based company has adopted a two-pronged strategy of investing in the cryptocurrency instead of traditional assets like short-term Treasuries and ramping up its software operations.

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Bitcoin

Large Bitcoin (BTC) Holders Added $5.4 Billion Worth of BTC in July, Data Shows

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

Large Bitcoin (BTC) Holders Added $5.4 Billion Worth of BTC in July, Data Shows

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Bitcoin

Bitcoin (BTC) Hits Six-Week High After Trump’s Pro-Crypto Speech

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

Bitcoin (BTC) Hits Six-Week High After Trump’s Pro-Crypto Speech

Bitcoin has retreated from a six-week high as investors shift their focus to speculation the U.S. may sell seized tokens just days after Donald Trump vowed to create a government stockpile of the cryptocurrency if he is elected president again.

The US transferred $2 billion worth of Bitcoin to a new digital wallet address on Monday, blockchain research firm Arkham said in a publish on social media platform X. Market analysis firms have speculated that the tokens are from the Silk Road marketplace, where customers used virtual currencies to buy illegal drugs and hacking tools before it was shut down.

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