These Developments Should Be Monitored for the Bull Market Ahead, According to Analyst
Cryptocurrency analyst Miles Deutscher listed the developments that are ahead of the market and that can trigger a movement in the price.
Here are some of the potential crypto events to consider in the coming months and years, according to Deutscher:
Bitcoin Spot ETF Approvals:
The US Securities and Exchange Commission (SEC) has yet to approve any Bitcoin spot ETFs, citing concerns over market manipulation, fraud, and custody issues. Many cryptocurrency users hope that the SEC will change its stance and approve some of the pending Bitcoin spot ETF applications, which could increase Bitcoin demand and price.
Bloomberg analysts currently give a 65% chance of approval of Bitcoin Spot ETF applications.
Ethereum Futures ETF Approvals:
If approved, the Ethereum spot ETF will ease some of the technical and regulatory challenges of launching, but will also bring some additional risks and costs for investors. The SEC has recently approved several Bitcoin futures ETFs, which could pave the way for similar products based on Ethereum or other cryptocurrencies.
Bloomberg analysts recently gave a 75% probability that Ethereum Futures ETFs will be approved by the SEC.
Bitcoin Halving:
The next Bitcoin halving is expected to occur in May 2024, reducing the block reward from 6.25 Bitcoin to 3,125 Bitcoin.
Historically, Bitcoin halvings have been followed by significant price increases, as seen in 2013, 2017, and 2021. However, there is no guarantee that this pattern will repeat itself, as other factors such as demand, competition, regulation and innovation can also affect the Bitcoin price.
2024 US Presidential Elections:
The outcome of the 2024 US presidential election could have a major impact on the crypto industry, depending on the views and actions of candidates and their administrations regarding digital currencies.
X (Twitter) Cryptocurrency Integration:
Although no official statement has been made yet, it is thought that Elon Musk’s company X is working to establish a payment system on the platform. It is not known whether this includes cryptocurrencies, or if so which cryptocurrencies.
Ethereum EIP-4844 :
EIP-4844 is a proposal to improve the Ethereum network by adding a new type of transaction that can move large amounts of data without affecting the execution of smart contracts. This data is called a “blob” and is briefly stored in the beacon chain.
The blob will be available to rollup solutions, which are layer 2 scaling techniques that move transactions away from the main chain and only publish the final state on the main chain. By using blobs, rollups will be able to reduce gas costs and increase their efficiency.
*Not investment advice.