Analysts at Binance Research say they remain “optimistic” about the market’s outlook, expecting upcoming catalysts to position the market “positively for the rest of the year.”
The cryptocurrency industry may have already seen the worst of the year, according to Binance Research analysts, who said in a statement: Friday Report The “gradual negative impact” may be limited as Bitcoin (BTC) regains ground lost during the brutal month of June.
Analysts acknowledged that “making profits in the current market environment has become increasingly difficult,” pointing to negative returns from newly launched projects and the absence of high-profile venture capital activity, which could “discourage talent from building.”
Despite these challenges, the Binance Research report notes that the industry is still in its early stages, with capital still “primarily flowing into infrastructure projects,” noting that available resources may be insufficient. “Redirecting some resources to developing useful, diverse, and innovative decentralized applications could help expand the crypto ecosystem and attract more users,” the analysts say.
Looking ahead, Binance is betting on the launch of Ethereum (ETH) exchange-traded funds (ETFs), which is expected to go live on July 23, as a major catalyst to “boost demand for Ethereum.” However, analysts have warned that the impact may “not be immediate,” pointing to the initial slow reaction after Bitcoin ETFs were approved in early 2024.
In addition to Ethereum ETFs, Binance identified interest rate cuts as another potential catalyst for “a variety of different markets,” along with the Bitcoin halving that took place in April. Historically, Bitcoin prices tend to rise 12 months after a halving event, according to data from CoinMarketCap. As of press time, Bitcoin is trading at $64,367, recovering from the $53,000 level it reached earlier in June, according to data from CoinMarketCap.
