Is crypto preparing for a new surge!?

19 September 2024

Since March 2024, we've witnessed a significant decline in the cryptocurrency market. During this time, the price of Bitcoin (BTCUSD) has dropped by 20-30%, and many altcoins have lost 50-70%, retesting the lows of June 2022. Market participants, especially those who bought at March highs, are growing nervous, with many questioning the future of cryptocurrencies as an investment class.

However, this correction is normal in terms of market cycles and historical metrics. Moreover, U.S. presidential candidates are using the crypto market as a key element of their campaigns. This could temporarily hold back crypto growth, allowing the winning candidate to claim future successes.

Looking closer, several powerful factors are supporting the prospects of a crypto market rebound:

• Political context: The 2024 U.S. presidential election is in full swing, and both leading candidates are focusing on blockchain technology and cryptocurrencies. This creates a favorable environment for renewed interest in crypto as an investment tool. Campaign promises and discussions around supporting blockchain could stimulate interest among both private and institutional investors, potentially driving cryptocurrency growth.
• U.S. interest rate cuts: On September 18, the Federal Reserve lowered the key rate to a range of 4.75–5%, marking the first reduction since March 2020. This move aligns with market expectations but decreases the appeal of traditional financial instruments like bonds due to their lower yields. In such an environment, investors often seek higher-yielding assets, including cryptocurrencies.
• Bitcoin halving impact: One of the key events influencing Bitcoin's price is halving — the reduction in rewards for mining new blocks. The latest halving occurred in April 2024, and its effects typically appear within 5-8 months. Historically, halving creates a supply shortage, driving up Bitcoin prices. With Q4 2024 coinciding with this period, Bitcoin could surpass previous highs, potentially boosting other altcoins as well.

FreshForex analysts believe the cryptocurrency market holds significant growth potential for the rest of the year, thanks to a combination of macroeconomic factors, political support, and the halving effect. The current correction is an excellent opportunity to enter the crypto market before the upcoming rally! Don’t miss your chance—trade and profit with us!

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