There is one familiar crypto market saying, 'if you want to know if ALL is well with cryptocurrencies, follow the Bitcoin market'. Funny and factual at the same time. The bitcoin dominance must not be underestimated or you may wind up trading the dangerous directions. Nevertheless, we've seen some projects trying to defy these odds. We can really spot this in the memecoins industries with a lot of pumps and dumps. I personally wouldn't attribute this as a positive crypto move. Without stability, memecoins hypes looks more of a market fraud.
We've seen bitcoin dangling for a while, not as you expected right? Or should I first ask, what were you expecting? A market surge after the long awaited halving wouldn't have been bad anyways but this is the market with real results steered by two opposition individuals; 'the bulls and bears'. After the halving between 19th and the 20th of April, we saw some positive lights as bitcoin kicked to regain at least the 65K market dominance. We could recall the new bitcoin all time high of above $73,700 on March 14th, and investors are awaiting a new breakout.
The question of 'are we green yet' seems vital as we speak. From an all time high of above $73,700 to a low of nearly $56,500 even after bitcoin halving, what is the future of bitcoin and the altcoin market at large? The market is mixed with uncertainties, the US monthly inflation release by the Fed plays a huge part, economic and natural uncertainties coupled with human disasters are still inclusive. The Israeli war added to this. Investors pulled out to their ancient safe haven; hard metals with gold leading the way. So what do you expect when this happens? Volatile markets like crypto will bleed.
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We've seen this happen over time yet one thing remains certain, the crypto market has shown the needed resilience. Tracking green light from the bitcoin market, we can see a bounce back to nearly $72,000 dollars on May 22nd although there has been a market decline to $69,000 dollars mark as of the time of writing. Many reasons surround these positive moves but the two major drivers are the news release of the US federal reserve and the Ethereum spot ETF. The federal reserve is injecting liquidity into the banking sectors and the broader economy. Smart investors know how to leverage this for market gains.
The most interesting for me remains the ethereum spot market ETF which is believed to be scheduled for approval today the 23rd of May. money will definitely be pumping into the cryptocurrency industry and even if it be for ethereum, bitcoin and altcoin will also gather new investors. The question of 'are we green yet' depends on your level of market information. Bitcoin has moved from $56,500 dollars to 72K within three market weeks showing signs of green candles. More is boiling up, if you have been following the price of ethereum lately, you should probably sense green patterns.
We could recall ethereum trading around $4,100, it's highest price high of 2024 within March 11th to the 14th. There has been a market liquidation which followed suit yet we've seen the ETH market showing resilience and refusing to break beyond $2,800 dollars. The ETF backup has kept faithful ETH investors holding on. It's about to move to their favor, something that shouldn't surprise you much. The moment the Bitcoin ETF hit the market, the door was open and the next in line was probably the ethereum Network. Truth is, a lot of us couldn't get the better of the bitcoin ETF, maybe you'll probably grab ETH or perhaps wait for a further ETF list.
Beyond just price
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While we mostly concentrate on market prices I personally have always viewed how events in the crypto industry favors the overall productivity of the cryptoverse. Innovation remains key to a thriving crypto industry. What will investors be expecting if not a continuous positive looking market and how will it be sustained if not through continuous project innovation.
ETH will get that approval and soon other likes will follow. News of Litecoin ETF has been one of the pending rumors. The market capitalization of the crypto market is getting denser with bitcoin still leading with $1.38 trillion dollars all alone. About the future of bitcoin, the breakouts to a new all time high is very possible from the looks of things. Those who are holding on to smaller altcoins have really been bleeding and expectant of a market turnaround. Green candles is a product of green news or hypes as the case may be, and The Fed coupled with ETH ETF seems a favorable pair.
To conclude, let me add, if we are green depends mostly on when you entered the market and which assets you are clinging on to. Yet, the general market view remains this, bitcoin has always foretold much. It has shown green signs and its altcoin follower ethereum has followed suit. We'll have to await how it will spread to the general altcoin market. Keep your eyes on the news, trust me, you'll need it.
Disclaimer, if you've ever read my financial article, always note it is not an investment advice. I am not even done advising myself. financial market is a game of who wins and who loses. DYOR. Thanks for your usual understanding.
Posted Using InLeo Alpha