Bitcoin has been trading steadily close to the $97,000 mark, defying expectations of a downturn this week. While recent employment data could have supported a more bullish environment for cryptocurrencies, the sector maintains its course thanks to perceptions of the Federal Reserve’s temporary independence. Fidelity cites key factors suggesting a bullish trend for cryptocurrencies this year.
Factors Driving an Altcoin Upswing
Contrary to predictions of an impending bear market by 2026, Bitcoin has shown remarkable strength since mid-January, climbing to new heights instead of dropping as it did in 2022. Additionally, the anticipation of slower interest rate reductions and upcoming quantitative easing (QE) provides a supportive backdrop for cryptocurrencies. Historically, these conditions have favored crypto performance.
According to Fidelity, there are four major factors pointing towards a bullish phase for altcoins:
- •Initiation of global monetary policy easing.
- •Conclusion of quantitative tightening, paving the way for QE.
- •Expected resurgence in M2 money supply growth by 2026.
- •Bitcoin’s narrowing performance gap with other investment assets.
In terms of altcoin potential, ETH is predicted to lead the charge. Analyst Poppe recently observed that a significant opportunity could spur a substantial upward movement.
“A major squeeze is happening in ETH, which might lead to a breakout next week. This is a great sign for the markets, as ETH staying above the 21-day moving average against Bitcoin indicates more risk appetite shifting towards altcoin markets.”
Progress on Key Regulatory Decisions
A delay in the Supreme Court’s expected tariff decision leaves uncertainty in the market, with a ruling now pushed to the following week. This outcome is vital in dispelling short-term negative pressures. Some speculate the delay may be connected to a possible pro-Trump decision, although the final ruling is uncertain. Analysts estimate a 70% chance of the decision supporting the removal of tariffs.
The past day’s pivotal developments include:
- •Trump’s announcement of a 25% import duty on foreign semiconductors.
- •A reduction in WTI crude oil prices below $60 as tensions with Iran eased.
- •JPMorgan’s prediction that a $130 billion crypto influx from 2025 will persist this year.
- •Ripple gaining preliminary EMI approval from Luxembourg under MiCA.
- •Zcash Foundation’s disclosure that the SEC concluded its investigation without enforcement.
- •The US finalized a $500 million Venezuelan oil deal.
- •The successful restoration of normal operations on the Sui network.
- •CZ reaffirming his belief in Bitcoin’s potential to reach $200,000, albeit with no set timeline.
With Bitcoin holding firm and the altcoin market on the verge of potential breakthroughs, the crypto landscape could be poised for significant shifts in the near future. Investors are observing these developments closely, awaiting the next big move.