According to industry experts, the cryptocurrency market is expected to remain unpredictable in the coming months.
Continued Volatility in the Coming Quarters
The introduction of spot Bitcoin ETFs has led to challenges in the second and third quarters of 2024. Coinbase’s research team highlighted the impact of supply overhangs due to significant Bitcoin selling. They anticipate choppy price movements in the market due to a lack of substantial narratives.
Looking ahead to the final quarter of 2024, analysts see a more positive outlook.
Potential Market Recovery in Q4 Influenced by Macro Factors
Factors like potential interest rate cuts and the US election in November could influence market dynamics. Despite caution around economic downturn concerns, analysts believe rate reductions could attract more retail participation if the economy remains robust.
Anticipating the US election, fiscal expansion could bolster Bitcoin as a viable investment option amid uncertain financial conditions.
Similar Positive Forecasts by JPMorgan Analysts
Contrary to differing timelines, JPMorgan experts align with Coinbase’s prediction of potential market recovery, suggesting a comeback in August.
Impact of Spot ETF Approvals
Notable legislative approvals, such as SEC permitting spot ETH ETFs and receiving SOL ETF applications, indicate positive momentum for the crypto industry. While the effects on ETH prices remain uncertain, experts believe these developments will position ETH favorably.
This could lead to unexpected market performance and ongoing support for ETH, despite potential delays in actualizing these changes, as per Coinbase analysts.
Featured image from Norris Inc., chart from TradingView
