After a grueling two-year period for Bitcoin and altcoins, we witnessed levels in 2024 that had not been seen for a long time. The tough bear market environment experienced by crypto investors at the end of 2023 and the beginning of 2024 was somewhat forgotten. So why do analysts expect even more rises despite the recent price increases?
Will Cryptocurrencies Continue to Rise?
In recent days, cryptocurrencies have remained strong despite being somewhat shaken by the Fed. However, experts expect price increases to continue despite short-term market fluctuations. So what are the reasons for their strong belief in the rise?
Stablecoins
According to the latest data shared by blockchain analytics firm IntoTheBlock, the stablecoin market capitalization is recovering strongly. We saw growth of over 9 billion dollars in all stablecoins, including USDT and USDC. The cumulative market value reached 133 billion dollars.
This increase reflects the renewed strength in the stablecoin sector and the power of liquidity entering cryptocurrencies. It also resembles periods historically where markets experienced more recovery with increasing investor confidence.
IntoTheBlock wrote about this;
“The stablecoin market value is recovering strongly and has gained over 9 billion dollars in value since October 2023. The sustained upward trend strengthens the possibility of an upcoming bull market cycle.”
Crypto analyst Zyre said that stablecoins, which act as a bridge between traditional finance and crypto, will continue the current growth trend as more investors come in.
Halving and ETF
In addition to the growth in the stablecoin market, the halving expected to occur in April also indicates that the recovery in the markets could continue. If you recall our market research published a few days ago, 84% of investors think this event will increase the price.
“More than half of the participants predict that Bitcoin prices will range between $30,000 and $60,000 during the halving (around April 2024), while 30% believe the price will exceed $60,000.”
Likewise, spot Bitcoin ETFs will assist the bulls in these few years as a price catalyst never seen in any four-year cycle before. Bitwise CIO Matt Hougan said;
“Spot Bitcoin ETFs alone achieved a net inflow of 700 million dollars just this week. Absolutely incredible. People have overestimated the short-term impact of ETFs and continue to significantly underestimate their long-term effect.”
