HoonSmart.com >> Merkel Capital looks at the cryptocurrency market as a whole. There is still high growth potential, especially for Bitcoin in the medium to long term. Meanwhile, in the short term, the Ethereum Ecosystem is another group to watch in May.
Last April there is an important event such as the Bitcoin halving that happens every 4 years, which causes the price of Bitcoin to fall by more than 18% due to the decrease in speculative pressure and no major event for Bitcoin in the short term, however, this event causes a supply of Bitcoin. What has been mined has been reduced by half, which is basically good in the medium to long term.
Mr. Woramet Chansen, Investment Advisor at Merkel Capital Company Limited, revealed the overall picture of the cryptocurrency market. There are still trends that can grow significantly, especially Bitcoin in the medium to long term. Meanwhile, in the short term, the Ethereum ecosystem is another group to watch in May. for the following reasons:
1) The first deadline for Ethereum ETFs
In May, there was an important event to keep an eye on: the final deadline for all three Ethereum Spot ETFs, which may impact other items that will be considered for approval in the future. If analyzed with the period in which the Bitcoin Spot ETF was approved, it was found that the price of $BTC rose until the day of the approval announcement, giving $ETH a chance to increase until May 23. However, they should be analyzed together with the chance that if the trend turns negative, it will have a significant negative impact on the ETH price.
2) The situation and opportunity for instant ETF approval on Ethereum
After analyzing the impact of the Ethereum Spot ETF event, next comes the analysis of its upcoming approval chances. The main difference between Bitcoin and Ethereum Spot ETF is Proof of Work and Proof of Stake. Investor confidence that the SEC would approve it was lower in March and April. But it's still higher than it was in 2023 (according to ETHE's discount or premium to NAV chart), and Blackrock has filed Form 19b-4, the final step in the review of Ethereum Spot ETFs, so Merkle Capital sees it as an opportunity for approval. . It's still high, especially on BlackRock's list.
3) Increase TVL of the Ethereum ecosystem
One of the factors that Ethereum Spot ETF has a chance of being approved for is this causing some money to flow into the Ethereum ecosystem in a big way. Especially the second tier group that has an increasing total value lock (TVL) in the short term. An additional factor is airdrop speculation using Layer 2 blockchains that do not yet have their own tokens, so the Ethereum ecosystem is a group to watch and has a great opportunity to grow in May, especially Ethereum and the Layer 2 group.
Starting this month, the first day featured in the May sell-and-go story, where Bitcoin was sold for a huge profit,” added Mr. Mana Kanyu, Chief Business Development Officer and Commercial Director, Merkle Capital Limited. The reasons behind this could be several factors, but the Fed's recent FOMC meeting made it clear that they will likely not cut interest rates. Which can be seen from the numbers and the possibility of a reduction this year may be only once and may not happen before the US elections. This puts pressure on this type of asset. However, it may be a buying opportunity for investors waiting for the right moment. Another interesting thing is Hong Kong's approval of BTC and ETH Spot ETFs. This is considered a good sign for the market.
“Reader. Infuriatingly humble coffee enthusiast. Future teen idol. Tv nerd. Explorer. Organizer. Twitter aficionado. Evil music fanatic.”