Crypto market will continue to expand over the next two years, according to Gemini
The post Crypto market will continue to expand over the next two years, according to Gemini appeared on BitcoinEthereumNews.com.
Gemini’s latest institutional investor crypto research report suggests that despite recent declines in major crypto prices, several factors could drive crypto expansion over the next one to two years. In the report shared with crypto.news, Gemini researchers present a positive outlook for the crypto market amid easing monetary policies, improving regulatory conditions, and potential consumer applications. The report suggests that some crypto supporters feel that the market lacks new participants despite the launch of spot Bitcoin (BTC) and Ethereum (ETH) ETFs and selling by long-term holders. Another pessimistic view is that the previous crypto rally was fueled by an extraordinary global pandemic, and current demand does not match the significant block space supply generated by new scaling solutions. Gemini’s report suggests the crypto industry and its market capitalization are expected to continue growing due to external and idiosyncratic factors. “Nothing is certain, but on balance, factors external to crypto as well as idiosyncratic to the asset class point the way to continued growth for the industry and its market capitalization,” the report read. Global monetary policy One significant point highlighted in the report is the shift in global monetary policy. Previously tight monetary policies are being relaxed, like in the case of the European Central Bank and the Bank of Canada cutting rates and a friendly bias emerging in interest rate markets. This environment could lead to a depreciation of the US dollar, potentially benefiting crypto prices as they rise against the weakening currency. “In the US, the last time these conditions emerged was in the first few months of 2019, as the Fed halted its tightening cycle, shifting its outlook in a dovish direction,” per the report. Recent moves by central banks to shrink their balance sheets and manage inflation have led to higher long-term real interest rates. Now…
Filed under: News - @ August 3, 2024 4:16 pm