The bitcoin market has been murky for a while. And for good reason, the candles continue to be red on the charts of traders, both seasoned and insider. Yes, the bear market continues to have terrible impacts. Find out about some things that might happen in this bear against bull combat, where the unloved is now winning.
Smooth switch from Ethereum to The Merge
One of the most significant appointments of the year is the relocation to The Merge. This upgrade will enable Ethereum to switch from Proof-of-Work (PoW) to Proof-of-Stake, which is anticipated to take five years (PoS). It should dramatically increase transaction speed, network scalability, and the capacity to build more intricate applications. Despite several delays, it appears like the formal launch is approaching quickly. Indeed, the signals are currently in the green. Additionally, it’s conceivable that investors’ interest in the global market would resurface if this shift goes successfully. We are not, however, impervious to a pump dump.
Approval of a spot ETF for bitcoin (BTC)
The SEC’s approval of a spot Bitcoin ETF is another event that might start an ascent. The American regulator declined to do this for years, citing a significant level of risk associated with this kind of investment. Bitcoin and other cryptocurrencies will gain more legitimacy as this old barrier crumbles. New institutional and individual competitors will consequently enter the market. The end of this winter should be signaled by the created cash inflows.
US interest rates are lessening
Note the participation of the United States Federal Reserve System in a similar vein (FED). One of the most influential players in the world of finance is the US central bank. It is also one of the most contentious institutions for cryptocurrency aficionados because of its printing press. Its easy money policy had a significant impact on the rise in the stock and cryptocurrency markets that was observed in November 2021. because it made getting loans simpler for American investors. While the FED had previously charged interest rates that were near zero, they currently range from 1.5 percent to 1.75 percent. Because of this, if the institution turns around, everything ought to gradually get back to normal.
Increasing use of bitcoin as currency
Only two nations in the world—El Salvador and the Central African Republic—have made bitcoin legal tender. Each of these news items sparked a great deal of interest outside of the cryptocurrency community. Many nations are currently looking into this potential. If a big economic power makes this choice, it will serve as a huge launching pad.
A large corporation accepts bitcoin as payment.
The biggest threat to this economy is probably the fact that few traders accept cryptocurrency. If a major online retailer like Amazon follows this course, there may be a significant price increase.
