For several months, the cryptocurrency industry has been gray. And with good reason, on charts of traders, both insiders and experienced, the candles remain red. Actually bear market pulls out and with it its destructive effects. In this bear versus bullfighting where the unloved currently dominates, discover some events that could potentially change the situation.
Successful transition from Ethereum to The Merge
The move to The Merge is one of the most important deals of the year. Expected in 5 years, this upgrade will allow Ethereum to go from Proof-of-Work (PoW) at Proof-of-Stake (PoS). It should significantly improve the network’s scalability, transaction speed and enable the development of more complex applications. Despite the various postponements, it seems that the official launch is imminent. At present, the signals are actually green. And if this transition continues smoothly, it is likely that there will be renewed interest from investors in the global market. However, we are not immune to one pump dump.
Approval of a bitcoin (BTC) spot ETF
Another fact that could trigger a trend is the SEC’s approval of a spot Bitcoin ETF. For years, the US regulator refused to do so, claiming a high risk for this type of investment. When this old resistance gives way, bitcoin and altcoins will be more legitimized. Thus, new institutional and individual players will emerge in the market. The cash flows generated should be the end of this winter.
Lower US interest rates
Similarly, note the involvement of the United States Federal Reserve System (FED). This is the US Federal Reserve, one of the most powerful players in the global financial scene. With its printing press, it is also one of the most controversial institutions for cryptocurrency enthusiasts. The rise in the stock and crypto markets in November 2021 was strongly influenced by its light monetary policy. As it made it easier for US investors to get loans. While the Fed had so far charged almost zero interest rates, they are now in the range of 1.5% to 1.75%. Therefore, if the institution returns, things should gradually return to normal.
Increasing adoption of bitcoin as a legal tender
El Salvador and the Central African Republic are the only countries in the world that have adopted bitcoin as a legal tender. These news stories each created a lot of excitement in the crypto community and beyond. Many countries are also currently exploring this possibility. This decision, if carried by a great economic power, will be a great springboard.
A multinational accepts bitcoin as a means of payment
The fact that cryptocurrencies are not accepted by most traders is without a doubt the biggest threat to this economy. Assuming an e-commerce giant like Amazon goes down this road, we could see a real price increase.
Recently, crypto investors have been brooding. Especially since this bear market spread over time. While waiting for it to disappear, everyone tries to pass the time as best they can. Some give in to the pressure and sell all their assets. Others have fun making predictions about the price of bitcoin and altcoins. During this time, the most optimistic take the opportunity to accumulate more. Like what, it is in difficult times that opportunity lurks.
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I came to the blockchain out of curiosity and joined it out of passion. I was amazed at the possibilities it offers through its various uses. With my pen, I hope to help democratize this technology and show how it can help make the world a better place.