1. Supportive macroeconomic conditions

  • Inflation rate: Continued inflationary pressure may drive more funds into the cryptocurrency market as a hedge against inflation. If the inflation rate continues to rise in the second half of 2024, cryptocurrencies, especially Bitcoin, may become a safe haven option for investors.

  • Global economic situation: Increased global economic uncertainty, such as the pandemic and geopolitical tensions, may prompt investors to seek new investment channels. Cryptocurrency may become one of the choices for investors due to its decentralized and censorship-resistant characteristics.


2. Positive market sentiment

  • Investor sentiment: Positive market sentiment usually leads to more buying behavior, driving the market up. Factors such as social media, market analysis, and expert comments can influence investor sentiment. Therefore, maintaining positive market sentiment requires continuous delivery of positive information and market outlook.

  • Continued entry of institutional investors: The participation of institutional investors not only increases the amount of funds in the market, but also improves the trust and maturity of the market. If more financial institutions and large companies announce investments or involvement in the cryptocurrency field, market confidence will be further enhanced.


3. Driven by technological progress

  • Continued progress in blockchain technology: The widespread application and continuous innovation of blockchain technology are the foundation for the development of the cryptocurrency market. If we can see more technological innovations, such as the successful implementation of Ethereum 2.0 and the expansion of the Bitcoin network, it will greatly enhance the technical foundation of the market, thereby promoting market recovery.

  • The rise of emerging blockchain projects: The emergence and rise of emerging blockchain projects have brought new growth points and vitality to the market. These projects may bring new application scenarios and business models, attracting more attention from investors and developers.


4. Policy support

  • Clarity of regulatory policies: The regulatory policies of various governments on cryptocurrencies are crucial. A clear and supportive regulatory environment will provide stability and transparency to the market and help attract more investors to enter the market.

  • International cooperation: The global nature of the cryptocurrency market determines the importance of international cooperation. Promoting regulatory standardization and cooperation on a global scale will help reduce the uncertainty and risks of cross-border transactions, thereby enhancing market confidence.


5. Optimization of market structure

  • Increased market depth and liquidity: Increased market depth and liquidity will help improve market stability and upside. More market participants and capital inflows, as well as more trading platforms and convenient trading methods, will be conducive to market recovery.

  • Security and technical level of the exchange: The security and technical level of the exchange directly affects the trust of investors and the market activity. If we can see more exchanges improve their security measures and technical level, it will help enhance the trust and activity of the market.