5 Catalysts Suggested by Analysts to Release Bitcoin and Cryptocurrencies From Their Stupor

Analysts predict that the introduction of new stablecoins, spot Bitcoin ETFs, and an anticipated change to the Ethereum scaling protocol will all serve as catalysts for the cryptocurrency markets.

Source: coinmarketcap.com

A wave of possible spot Bitcoin ETFs, PayPal's new stablecoin, and a significant Ethereum upgrade are a few of the potential catalysts that might awaken the crypto market from its slumber. The price of Bitcoin along with other cryptocurrencies increased in the first half of 2023 compared to the second half of 2022, but the lethargy over the previous five months increased, with Galaxy Digital CEO Mike Novogratz describing the current markets as lackadaisical in June.

Analysts did, however, tell Cointelegraph that they believe multiple catalysts might give the cryptocurrency markets a fresh boost. Henrik Andersson, the chief investment officer of Apollo Crypto, is one of many keeping an eye on the possibility of authorization of spot Bitcoin ETFs and stated that it was not unlikely to see one allowed in the upcoming six months. According to him, institutional acceptance of cryptocurrencies has been growing. He also stated that the worst of the macro tightening seems to be behind us. Also, since central banks have stopped raising interest rates, the cycle of rate increases may have reached its conclusion.

Additionally, Andersson sees the debut of PayPal's stablecoin and probable movements by X (Twitter) to accept cryptocurrency payments as encouraging signs for future acceptance of cryptocurrencies.There are further potential factors in the future, such as what plans X [Twitter] has for payments and monetary applications; cryptocurrency is a serious possibility there.

However, Markus Thielen, head of research at the cryptocurrency financial services platform Matrixport, thinks a planned upgrade to Ethereum is also one to watch out for. He has also staked his bets on spot Bitcoin ETFs. Proto-danksharding, a new method introduced by the Ethereum update, will lower costs and speed up transaction throughput.

What Comes For Crypto In The Near Future

Tony Sycamore, a market analyst with the Singapore-based trading platform, advised Cointelegraph that traders ought to keep a watchful eye on the minutes from the most recent Fed meeting. On August 16, the Federal Open Market Committee is due to issue the minutes from its July meeting, and it is anticipated that rates will remain unchanged.

Following 'Astonishing' BTC Price Activity, Bitcoin Has Bottomed From One Analyst

Since the middle of March, the price of bitcoin has fluctuated inside a $6,000 range-bound channel. Support was located at $25,000 during the mid-June slump, but the resistance just above $31,000 has been shown to be overly strong at least four times. In addition, markets have experienced record-low volatility as a result of the recent decline in volumes and liquidity.

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