Dragosz highlighted the impact of the Bitcoin halving, stating that it has propelled the market towards recovery and predicts that the asset’s future growth will be driven by a supply shortage.
“The positive impact of the Bitcoin halving is already evident and is expected to fully manifest itself around July 2024 – approximately 100 days after the event.”
Additionally, the report states that Ethereum has outperformed Bitcoin amidst a stagnant bullish rally and a general rotation of altcoins. The dominance of altcoins over BTC has reportedly increased, with at least 65% of coins showing better performance than the first cryptocurrency.
According to Dragos, ETC Group’s Crypto Sentiment Index has risen from yearly lows but still indicates a prevailing bearish sentiment. The stock market is also experiencing a decline in investor interest in high-risk assets, as per the research.
Dragos believes that the surge in Ordinals, which has resulted in higher transaction fees, could pose a significant obstacle for Bitcoin. This is coupled with the fact that the number of active addresses for the cryptocurrency has reached a yearly low.
“As transaction fees become increasingly expensive for some users, it will lead to lower network usage since users will anticipate lower value.”
In a separate development, former Goldman Sachs executive Raul Pal predicted that by 2030, half of the world’s population will own cryptocurrencies.