As India counts votes for its general elections, the crypto market shows optimism. Experts believe the new government could influence crypto regulations and adoption.
As India counts votes for its general elections today, the crypto market is buzzing with optimism. While the elections don't directly impact cryptocurrencies, the new government could play a crucial role in shaping crypto regulations and adoption in the country. Most analysts are hinting at a bullish trend for the crypto market,
Bitcoin rally
Bitcoin is on the brink of a major rally, touching the $70,000 mark after encouraging inflation data from the US. Shivam Thakral, CEO of BuyUcoin, explains, "The soft inflation data has sparked debates about a potential interest rate cut by the US Fed in its next meeting this month. If Bitcoin breaks its all-time high again, we could see BTC approach $100,000, as predicted by the banking giant Standard Chartered."
Thakral adds that the current macroeconomic factors look favorable, and the momentum is expected to sustain. This sentiment is echoed by the CoinDCX research team, which notes that Bitcoin is consolidating between $69,000 and $70,000, with bullish signals from exponential moving averages (EMAs) and positive inflows into Bitcoin ETFs.
Ethereum and Altcoins
Rajagopal Menon, VP at WazirX, highlights the bullish trends in the crypto market, especially for Ethereum. "Ethereum continues to fluctuate around its 50-day EMA, which has been a strong support level. Technical indicators show positive signs, with the stochastic indicator beginning to overlap positively, indicating a potential bullish trend."
Menon also points out that Bitcoin is testing a crucial resistance level at $69,110.00. "A breach of this level could propel Bitcoin higher, with initial targets set at $70,645.00 and potentially extending to $73,800.00. The bullish outlook for Bitcoin remains intact as long as it stays above $67,080.00," he says.
Market structure
Institutional interest in Bitcoin is growing. The CoinSwitch Markets Desk reports that Bitcoin has steadied around the $69,000 mark, with the market structure poised for another leg up towards its all-time highs. Ethereum, too, has found its base at $3,800, with minimal selling pressure expected as ETH ETF trading is set to start later this month.
According to the CoinSwitch Markets Desk, the US state of Wisconsin’s investment in Bitcoin is a testament to the increasing institutional interest. Wisconsin has invested a small portion of its pension fund in Bitcoin and is expected to increase exposure through spot Bitcoin ETF products. Currently, this stands at 0.1% of its $156 billion in assets.
The Federal Reserve's upcoming policy meeting is a focal point for the crypto market. Analysts believe that the Fed's potential rate cuts in the coming months could further boost the market. "The anticipation of steady interest rates is contributing to the current optimism in the crypto market," says Menon. Investors are hopeful that these macroeconomic factors will continue to drive the market upwards.
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