This year is being hailed as a significant period for cryptocurrencies, especially following the approval by the US Securities and Exchange Commission (SEC) of eight funds set to roll out spot Ethereum exchange-traded funds (ETFs). Analysts suggest that the bullish trend in the market is poised to continue in the latter half of the year, driven by substantial interest from institutional investors.
There’s an optimistic outlook among investors who anticipate that additional alternative coins could secure SEC approval, spurred by the regulator’s decision on May 23 to greenlight a rule change for ETFs acquiring and holding Ethereum, the world’s second-largest cryptocurrency. Noteworthy financial firms such as BlackRock and Fidelity have also shown interest.
The direction was set earlier this year with the approval of spot Bitcoin ETFs, marking a crucial milestone for the digital asset industry. Bitcoin’s price surged over 70% to reach a historic peak in the two months post the Bitcoin ETF approval.
If Ethereum (ETH) follows a comparable trajectory, it could potentially drive the ETH price to a new high of approximately US$6,000 by the conclusion of July, up from $3,867 recorded on May 29 according to coinmarketcap.com.
This positive sentiment is linked in part to how investors interpret the Federal Reserve’s Federal Open Market Committee minutes, with recent macroeconomic information hinting toward a dovish stance.
Sanjay Popli, the chief executive of Cryptomind Advisory, notes that the price of ETH has been on the rise since May 20, despite uncertainties regarding the SEC’s endorsement of all funds this time around. Political dynamics are in play, with Donald Trump’s support for digital assets casting a favorable light.
Ahead of the US elections, the government is adjusting its approach to be more crypto-friendly, given that about 20% of US voters hold crypto assets. Popli foresees ETH prices potentially hitting $6,000 in the near term and $10,000 by year-end, while also predicting Bitcoin to reach $80,000-$100,000 as institutional investors increase their involvement.
There’s a general consensus that 2024 is shaping up to be a bullish year for cryptocurrencies, with BTC prices steadily rising since the year began. The momentum is expected to carry through this year, especially with the inclusion of spot Ethereum ETFs in the latter half and the introduction of other promising altcoins such as Near Protocol and Solana.
Coins associated with artificial intelligence are set to be popular investment choices this year, according to Mr. Popli. Furthermore, any potential interest rate cuts by the Fed could inject additional liquidity into the market, which could further support cryptocurrencies.
However, Popli highlights that geopolitical tensions remain a risk factor for cryptocurrency investors to keep an eye on as they navigate the volatile market.
