Puzzling predictions from yesteryears foresaw a fall in crypto prices due to adverse macroeconomic factors in 2022; nevertheless, the present landscape diverges significantly with decelerating inflation and indications from the Feds hinting at a halting of prior interest rate hikes. Interestingly, the ongoing bull run has parallels deriving positive cues from bonds and stock markets.
For instance, Bitcoin, which suffered a staggering 55% dip in value last year, ascended an impressive 80% this year, buoyed by the influx of institutional capital. Even under initial interest rate hike pressures, tech stocks have seen a surge, particularly within tech-heavy Nasdaq reaching a 52-week peak on July 12.
Contributing to this bullish sentiment is the rise of Artificial Intelligence, with stocks including the likes of Google, Amazon, Nvidia, and Apple now representing 55% of NASDAQ 100 and 27% of the S&P 500. Market analyst Lyn Alden emphasizes that the liquidity easing in the bond markets spells potentially positive news for crypto and similar liquid assets.
While there’s been a noticeable increase in market activity after the pause in interest rate hikes, assumptions of slow market growth may not necessarily apply to high-risk assets. This is all too relevant for Bitcoin’s price surge, aided by increased liquidity and newfound institutional interest.
We find the US market on the precipice of a Bitcoin Exchange Traded Fund, and with incoming Bitcoin halving, the most optimistic forecasts predict an upbeat trajectory for Bitcoin’s price. Supporting factors aren’t just limited to attractive interest rates and a booming equity market.
Recent events such as Ripple’s partial triumph over the Securities and Exchange Commission have spurred bullish optimism. Notably, the price of Ripple token XRP has held strong with a seven-day increase of over 58.92%. Meanwhile, other alternative coins, namely Cardano (ADA), Solana (SOL), and Dogecoin (DOGE), have seen appreciations of 6.17%, 16.63%, and 6.40%, respectively.
It can be conjectured that with the right combination of macroeconomic factors, regulatory advancements, and innovative technologies, the crypto market may well be on track for even loftier heights in the near future.
Source: Cryptonews
