5 Catalysts That Could Revive Bitcoin and Crypto

A potential influx of Bitcoin exchange-traded funds, PayPal’s new stablecoin and an important Ethereum upgrade may be the catalysts that could bring crypto out of its slumber.

The crypto market has seen a slight recovery since the second half of 2022, yet the past five months have been relatively quiet, with Galaxy Digital CEO Mike Novogratz describing the market as “lackadaisical” in June.

Analysts told Cointelegraph that there are several factors that could potentially ignite the crypto market.

Henrik Andersson, Chief Investment Officer at Apollo Crypto, is optimistic about the possibility of spot Bitcoin ETFs being approved in the next six months. He noted that institutional acceptance of crypto is on the rise, and that central banks have paused rate hikes, suggesting that the worst of the macro tightening is behind us.

Andersson is also bullish on PayPal’s stablecoin launch and potential moves from X (Twitter) to include crypto payments.

Markus Thielen, head of research at Matrixport, also believes that spot Bitcoin ETFs could be a catalyst for the crypto market. He also highlighted the upcoming upgrade to Ethereum, which will introduce Proto-Danksharding to reduce fees and increase transaction throughput.

In the short term

Tony Sycamore, a market analyst from Singapore-based trading firm IG, recently suggested that investors pay attention to the minutes from the Federal Open Market Committee’s July meeting, which is scheduled to be released on Aug. 16 and is expected to keep rates unchanged.

Since mid-March, Bitcoin prices have been fluctuating within a $6,000 range-bound channel, with the resistance level just above $31,000 being too strong to break on multiple occasions, and the mid-June dip finding support at $25,000.

Additionally, the liquidity and volumes in the markets have been decreasing, leading to record lows in volatility.

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