Currently, the cryptocurrency market is in a bull market. Retail investors are gradually returning, and the price of Bitcoin is hovering near the historical high in 2021 or even slightly breaking through. The future situation seems to be very good. For those who have been closely watching the market dynamics throughout 2023, it is exciting to see that the price of Bitcoin can start with "7".
As the industry continues to mature, the scope of the market has expanded dramatically. From modular blockchain infrastructure to meme coins on the Solana chain, to Bitcoin NFTs (and more emerging areas), there are more areas that need the industry’s attention than ever before.
But at present, except for Bitcoin which is relatively strong, the altcoins have not seen much improvement. Is the market over?
Bitcoin
From a long-term perspective, the performance of mainstream currencies can be described as quite strong. For example, Bitcoin hit a historic high monthly closing price on March 31, which is the seventh consecutive month that Bitcoin has shown an upward trend. With the approval of the Bitcoin ETF and the joint bullish sentiments of BlackRock CEO Fink and MicroStrategy CEO Saylor, the market has undoubtedly been injected with a shot of adrenaline. With only a few weeks left before the Bitcoin halving, the market generally expects that the halving will further drive the price of Bitcoin up. Therefore, judging from the current trend and various factors, it is hard for me to imagine that the Bitcoin bull market will come to an end in the second quarter.
Ethereum
The market seems to have priced in most (if not all) of the negative expectations regarding the rejection of the Ethereum ETF. The first Ethereum approval deadline is May 23, when we will get more news.
In addition to traditional spot ETFs, several leading ETF issuers have submitted applications to include staking services in spot ETFs themselves. I think this is a natural and logical move, as traditional financial institutions favor yield, and staking yield is an inherent feature of the Ethereum protocol itself. In addition, given that:
The success of Bitcoin spot ETFs;
BlackRock’s successful track record in applying for ETFs;
Coinbase continues to fight for regulatory clarity;
Ethereum futures ETFs are closely correlated with spot ETFs;
The SEC Chairman’s previous contradictory statements on virtual currencies;
I firmly believe that an Ethereum ETF will be approved this year.
Solana
As early as August 2023, I was bullish on Solana, and now I am very pleased to see its potential gradually realized in reality. Although there are many doubts about Solana's development path, it is these challenges and controversies that make me more confident about its prospects. Facts have proved that Solana has consolidated its position as a top player in the industry, and I firmly believe that Solana's development momentum will be even stronger in the second quarter.
Solana has undoubtedly found the perfect fit between product and market, from easy-to-use on-chain casinos to innovative real asset tokenization (RWA) and decentralized physical infrastructure network (DePIN) protocols, the breadth and innovation of its application areas are remarkable. The rapid iteration capabilities demonstrated by the Solana core team and ecosystem builders are even more impressive, constantly driving the development and progress of Solana.
The second quarter will be a period of intensive token releases for protocols. Solana, with its unique charm, first attracted a lot of attention through Meme coins, and then retained users with decentralized applications (dApps). It is obvious that other L1/L2/L3 ecosystems are eager to replicate Solana's success model. With the end of FTX, I think Solana is expected to continue to advance in the second quarter and show its strong development momentum after the previous consolidation period.
Finally, once the spot Ethereum ETF is approved, I expect this will be a catalyst for traditional finance (TradFi) to enter the Solana space. Institutional demand for Solana has long been evident, as can be seen from past digital asset fund flows and Grayscale's SOL trust product. The approval of the Ethereum spot ETF will focus the market's attention on Solana, the third largest cryptocurrency in the world, and further promote its rise in the cryptocurrency market.
All in all, I am very bullish on Solana’s prospects. When the overall market sentiment remains on the sidelines, this can only mean one thing: the price will rise significantly.
In addition to the factors mentioned above, here are some other positive information worth noting:
Bitcoin halving: Expected to happen around April 20, it may be good for Bitcoin prices;
Robinhood earnings report: to be released on April 24, the market will focus on its potential impact on the cryptocurrency market;
Doge futures trading is launched on Coinbase: scheduled for April 29, which may increase the trading volume and attention of Dogecoin;
Coinbase earnings report: tentatively scheduled for release on May 2, its performance may affect market sentiment;
Ethereum spot ETF approval deadline: May 23. This event and subsequent ETF-related decisions may have a significant impact on Ethereum prices.
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