Crypto had a harsh start to the year, Q1 being the worst since 2018 with March ending on a low note. But one crypto analyst says there are a few key things that could help turn things around in Q2.
Let’s take a deep dive into it and get some details about things which can change the crypto market in Q2.
Bitcoin Halving Kicks In
In April 2024, Bitcoin had halved, which means miners now can earn half as much Bitcoin as before. This means that less new Bitcoins are being made, as a result the supply would be getting smaller. In the past, this usually led to prices going up after some time. So in Q2, we might start seeing Bitcoin’s price slowly rise because of this.
Ethereum Spot ETF Approval
Everyone is waiting to see that like Bitcoin, if the U.S.will approve a spot Ethereum ETF. If that happens, it could bring a wave of money from big investors into Ethereum, just like we faced with Bitcoin in Q1 also, it would send a strong message that crypto is becoming more accepted in the traditional finance world.
Lower Interest Rates Could Boost Crypto
If the U.S. Fed starts lowering interest rates or even says they might, it could help crypto as lower rates makes it easier for the people to borrow and spend, so they might invest in crypto and tech stocks. If inflation slows down, even more people could come back into the market.
Big Companies take a deep dive Into Crypto
Big global companies like Fidelity, PayPal, and BlackRock — along with some big tech firms — have started to explore crypto. They have started doing things like offering crypto services, using blockchain, or adding crypto payment options. This helps them to make crypto feel more real and trusted, which brings more users and large investors everyday to the crypto world.
Regulatory Clarity in the U.S.
Right now, there is a lot of confusion about how crypto could be regulated. If the US government or agencies like the US Securities and Exchange Commission (SEC) comes out with clear rules then, it could open the door for new projects and investors who are waiting for things to be more certain.
