Will the cryptocurrency market continue to be positive in Q2?
After a volatile and surprising first quarter of 2024 with the launch of spot Bitcoin ETFs in the United States pushing BTC prices to a new peak of nearly $74,000, the second quarter of this year is expected to witness many improving factors. market, especially the Bitcoin halving event.
However, the positive effects may not be evident until the second half of April, David Duong, Coinbase's director of institutional research, said in a recent post.
'The second quarter of 2024 looks more favorable for the cryptocurrency market but positive factors are only evident starting from the end of April'.
Despite the recent US holidays and corporate finance adjustments, the cryptocurrency market has still shown surprising stability. However, Duong predicts that the approaching tax season could prompt investors to sell their holdings, potentially driving prices down.
According to Duong, the recent market volatility is due to speculative trading strategies focusing on 'Short MicroStrategy and Long Bitcoin trading'. On the positive side, he believes that many of the concerns identified earlier this month appear to have subsided, possibly creating a more favorable environment for the cryptocurrency market.
Duong's analysis also points to Bitcoin supply-demand dynamics based on two main events: halving and the review of new financial products such as Bitcoin spot ETF. Specifically, he suggested that the end of the review period for spot Bitcoin ETFs by major financial institutions, coupled with continued institutional interest, could boost demand for Bitcoin.
'On the demand side, the 90-day review period that many wirehouses use when conducting due diligence on new financial services, such as Bitcoin spot ETFs, could end as early as April 10. We think this is still unlikely to free up significant capital for US-based spot Bitcoin ETFs in the medium term.'
'Meanwhile, it appears that institutional interest in this space remains elevated based on the level of leveraged short positions in CME Bitcoin futures, which have increased to a record high of 19,917 contracts as of March 19, according to CFTC'.
On the supply side, the halving event is expected to impact supply dynamics by reducing the rate of new Bitcoin entering the market. If demand remains stable or grows, the price of Bitcoin could increase.
You should read it
- How to dig bitcoin without wasting electricity
- What is Bitcoin faucet? What is Bitcoin faucet?
- What do you need to know when buying Bitcoin or selling Bitcoin?
- Guide to digging Bitcoin for beginners
- Today's Bitcoin price, Bitcoin price update every minute
- The world only has 20% Bitcoin to 'dig'
- 10 facts about Bitcoin
- Crossing virtual walls, Bitcoin exploded in real life
- How to interpret bitcoin that your grandparents can understand
- What is Satoshi? 1 Satoshi is how many Bitcoin?
- Instructions to buy and sell Bitcoin on Remitano floor
- Bitcoin finds its heyday
Maybe you are interested
How to mining CHIA coin (XCH) on Windows operating systems Top 10 best and safe electronic wallets in Vietnam How to renew an ATM card when the ATM card expires Forgetting ATM card password, losing ATM PIN how to get it back? How to register Techcombank Smart OTP to get the authentication code What is AirPay? Which bank does AirPay link to?