In the last post I talked about where we are in the current bull market and why we’re experiencing sideways price movement. I’m now going to reveal some key fundamentals (what I refer to as Bullish Catalysts) that will drive this market to new all time highs.
We know volatility is the price we pay for gains, but embracing it isn’t always easy. This is where the bullish catalysts come in. They give us the willpower to hold through the volatility.
Once you understand these catalysts, you’ll understand the bigger picture at play here.
Bullish Catalyst #1: The Bitcoin ETFs
Exchange-Traded Funds (ETFs) are significant because they open the floodgates to millions of investors who may not have entered crypto before. And they’re bringing trillions of dollars of capital with them.
Up until now, profits in crypto have been mainly generated from retail investors, which is everyday people like you and me. Big institutions could never enter the space because the regulations didn’t exist for them to do so. They were held back by regulatory bodies like the SEC for various reasons like reporting, custody and various other reasons.
But in January 2024, all that changed.
The SEC approved 11 Bitcoin ETFs at the same time, and investors that previously would not have held Bitcoin in their portfolio now could in a regulated way – and did!
What happened next was unprecedented.
The Bitcoin ETFs had more trading volume in one day than all 500 non-crypto ETFs that were launched during 2023.
To say this made financial history is an understatement.
The predictions for Bitcoin ETF inflow trading was $14.4 billion for the entire year. We have already surpassed this figure. When over 50% of the top 25 hedge funds in the world own Bitcoin ETFs, you know it will bring huge trading volume for years to come.
It now seems inevitable that the crypto market will become a deca-trillion-dollar market.
While ETFs do bring more centralisation, we’re under no obligation to invest in them ourselves. We can let the institutional money roll in while we continue to privately own and store our crypto, so we have full control.
Bullish Catalyst #2: Ethereum ETF Approvals
So we’ve seen what happened when Bitcoin ETFs hit the market. What do you think will happen when Ethereum ETFs open for trading?
Right now, eight Ethereum ETFs have been approved by the SEC. They are still in the paperwork stage, which means they’re not yet open for trading. However, given what we’ve seen with Bitcoin, many are expecting a huge price surge. In fact, speculation is that Ethereum will reach up to US$13K. Trading is expected to open in July and this explains why there’s so much Ethereum trading happening right now.
So how high could it go? And how fast are we going to crack through a new all-time high for Ethereum?
Something to think about.
Bullish Catalyst #3: The Post-Halving Supply Shock
Now let’s talk about one of the most powerful price narratives in all of crypto – the Bitcoin halving.
The Bitcoin halving is a mechanism that controls the supply of new Bitcoin entering circulation. Every four years it gets cut in half, a clever way to ensure that Bitcoin remains a deflationary asset.
Most people think prices should climb immediately after halving, but it’s much more gradual than that. The true result of the halving won’t manifest until later this year. Think of the halving like a stone in the water – it creates the ripple effect which eventually becomes a tidal wave of potential positive price action.
Many investors become impatient with this. But this is a big mistake.
You see, this year, the halving happened soon after the institutional money from ETFs began flooding in. There are now approximately 3,000 Bitcoins per day of inflow demand, and it hasn’t slowed down.
This all points to one inevitable truth.
A major supply shock is about to collide with unprecedented demand.
Bitcoin is now considered the scarcest asset on the planet, even more so than gold. What do you think will happen to the price once reduced supply truly meets increased demand?
Bullish Catalyst #4. US Political Landscape
This year is an election year, and investible assets such as crypto are known to perform very well in elections. In fact, historically speaking, crypto prices rally after an election. This is one factor that makes the landscape look very promising for crypto, but there are many more.
The ETF approvals from the SEC have changed the regulatory landscape and introduced a softening stance from the powers that be. This trickles down to the public, lessening the fear and anxiety around potential regulatory clampdowns. But it’s also had an impact on political figures.
Perhaps the most surprising element of this bullish factor is the support from the Democrats, who have previously been quite anti-crypto. So we now have Republicans, Democrats and the SEC looking at crypto much more favorably, which is a turn of events that nobody anticipated!
Add in the fact that around 30% of people aged 18-45 own crypto in the US, it’s no surprise that political figures have started to embrace it. If they want to secure younger voters, it makes sense to be more accepting of crypto. Donald Trump has come out as a supporter, and he’s accepting crypto donations for his 2024 presidential campaign. Even Joe Biden’s campaign managers are reportedly exploring accepting crypto contributions!
This is all looking incredibly promising for crypto.
As you can see, any one of these factors is enough to get excited by, but when you combine all of them together, it becomes clear this bull market will be unprecedented. And we haven’t even talked about the US Federal Reserve hinting at interest cuts toward the end of year and into 2025!
These bullish catalysts are the key to holding our positions and executing our moves. We’ve officially entered the last cheap accumulation zone, a time seasoned investors wait years for.
If you’re reading this, know you’re on the right side of the wave, and you have an incredible opportunity to be proactive and win at this crypto game.
Make this bull market your market.
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