Following a turbulent stretch made more difficult by the SEC’s legal aggression and the lack of clear regulations around the cryptocurrency market, all signs are pointing to a pending crypto spring. Bitcoin is leading the charge, pushing up over $35,000 for the first time in 18 months, while Ethereum can now be found across 100 million individual addresses, illustrating how widespread crypto is becoming.
Part of the surge is related to the SEC’s any-minute-now approval of a Bitcoin ETF application, which many view as a step forward in making cryptocurrency more accessible to more investors. A Bitcoin ETF is anticipated to drive up demand for BTC, meaning prices are climbing as the approval edges closer and those with holdings are doubling down.
The impending halving of Bitcoin in 2024 is also projected to cause a rise in demand as the supply decreases. Traditionally, BTC halvings have been both preceded and followed by bull markets, creating a cyclical pattern that’s currently on the upswing.
Bitcoin isn’t the only crypto coin coming out ahead. While Bitcoin is being actively scooped up by whales, Ethereum is being gobbled up by minnows – a hundred million of them. It’s the first time Ethereum has hit the milestone of 100 million individual addresses (with those with “insignificant” holdings not included in the count), showcasing how Ethereum effectively serves as the silver to Bitcoin’s gold.
It’s easy to see why Ethereum in particular is climbing up as its network is both faster and cheaper to run, giving it more utility than Bitcoin. While both are built around the foundation of decentralized finances (DeFi), Ethereum takes the edge in its usability for DeFi applications. In other words, Ethereum has a high potential ceiling due to its solid infrastructure, and it’s climbing toward it thanks to momentum from DeFi transactions.
Diversification seems to be the focus of investors of all sizes as altcoins in general are seeing a lift. It’s a self-perpetuating cycle: The more whales – or those holding a significant amount of a cryptocurrency, such as 1,000 BTC – invest into different kinds of cryptocurrency, the more minnows are inspired to invest in it as well.
Of course, prices going up in the cryptocurrency sphere isn’t a sure sign that they will continue to rise. However, given that cryptocurrencies are increasingly being viewed as an alternative to fiat currencies – which are continuing to decrease in value based on inflation – it’s clear why more and more people are choosing to invest in crypto.
In the U.S., inflation isn’t quite as severe as it is in other countries. Places where it is severe, such as Turkey, are seeing exponential growth in demand for cryptocurrencies as people are looking to shift their investments out of unstable fiat currencies and into the future of finance – a future that is rapidly becoming the present. For their part, countries around the world are responding in kind, with many establishing cryptocurrency regulations to ensure the safety of investors.
It’s all pointing toward a crypto spring as widespread adoption becomes the norm. What lies beyond that remains to be seen, but for longterm investors, the summer looks bright indeed.