Crypto Market to Flourish Despite Recent Volatility: Gemini
The crypto market is expected to continue its growth over the next 2 years, as factors continue to stack up in its favor, according to a Gemini report.
In an August 1st Gemini Institutional Insights report , the crypto exchange cited a combination of favorable monetary policy, regulatory shifts, and infrastructure developments to drive growth, even in the face of recent market volatility.
Where are we in the crypto cycle?
Some believe the crypto market hit a long-term cyclical peak in early 2024. However, we think the story might be different…
Thanks to the growing real world applications such as prediction markets coupled with favorable policies from… pic.twitter.com/CAa7odtRTx
— Gemini Institutional (@GeminiInsti) August 1, 2024
Over the past 3 months, the market has been in a period of consolidation, with major cryptos seemingly range-bound. Most significantly, Bitcoin has fluctuated between $53,550 and $72,000, while Ethereum remains between $2,800 and $3,970.
This long period of consolidation follows significant price surges earlier this year driven by the launch of Bitcoin and Ethereum exchange-traded funds . The likes of which pushed Bitcoin to a new all-time high above $73,000 in March.
Prices have since cooled, with Ethereum down about 22% from its March all-time high of $4,090. Likewise, Bitcoin has slumped by roughly 12%.
While there is a narrative suggesting that this cycle has already peaked, the broader outlook remains positive. Gemini said:
“Factors external to crypto as well as idiosyncratic to the asset class point the way to continued growth for the industry and its market capitalization.”
One of the key drivers identified is the shifting stance of global monetary policy.
After more than two years
