It’s no secret the past few weeks have been tough for crypto investors. In March, Bitcoin fell off a proverbial cliff, tanking from $7,700 to a low of $3,800 in the span of a single day. Altcoins followed suit, actually falling even more than the market leader.
And as a result, millions of dollars worth of cryptocurrency were liquidated, sentiment hit rock bottom, and many traders and investors threw in the towel, accentuated by the recent decrease in the Bitcoin market’s liquidity.
But, analysts are starting to come to the conclusion that the stars are aligning for the crypto market, especially for Ethereum and certainly for Bitcoin.The crypto stars are aligning
Cyrus Younessi, part of the Risk team at Ethereum-based DeFi application MakerDAO, summed up this cheery sentiment nicely when he published the crypto-viral tweet on Apr. 6, simply explaining that “not since 2017 have so many bullish crypto narratives aligned at once”:The growth of decentralized finance (DeFi): DeFi’s growth, analysts say will dramatically boost crypto adoption as consumers pick up on the relatively-high interest rates these blockchain solutions provide. The imminent arrival of Ethereum 2.0: The upgrade is slated to increase the blockchain’s efficiency in terms of transaction speeds, transaction throughput, and functionality. Researcher Justin Drake said earlier this year that he has “95 percent confidence we will launch in 2020.” May 2020’s block reward halving: This has been seen as a decisively positive event. Per previous reports from this outlet, a quantitative model says the fair value of Bitcoin will rise to at least $55,000 in the wake of the event. Gold’s rally over the past couple of weeks: Mike McGlone, an analyst at Bloomberg Intelligence, explained in an extensive report published this month that gold’s strength should act as a boon for Bitcoin and, thus, the rest of the cryptocurrency market. Federal Reserve’s repo and open market operations: ...