According to BlockBeats, on October 26, Bitwise Research Director Ryan Rasmussen analyzed four potential catalysts that could drive the cryptocurrency market higher. These include the U.S. election and regulatory developments, interest rate cuts and economic stimulus, renewed ETF flows, and the emergence of killer applications and exciting new releases. The details are as follows:
The uncertainty surrounding the U.S. election results is currently weighing on market sentiment. However, the cryptocurrency sector now has the most effective political lobbying and bipartisan support in Congress. Therefore, regardless of who takes office, it is expected that pro-crypto legislation will pass through Congress.
The market has entered a global monetary easing cycle. In the future, any signs of economic weakness will be met with overwhelming stimulus. Low interest rates, ample liquidity, and government support create an attractive environment for cryptocurrencies.
Major securities firms are expected to allow clients to recommend Bitcoin ETFs in the coming months. This could lead to a surge in ETF flows in the fourth quarter and into 2025, potentially driving Bitcoin prices to new all-time highs.
Cryptocurrencies are thriving due to the emergence of killer applications and new blockchains. From stablecoins to DePIN to prediction markets, multiple killer applications are expanding simultaneously. Additionally, optimism is building around new blockchains such as Near, Sui, Aptos, and Monad.
