In the world of cryptocurrency, analysts at Swyftx are eyeing a potentially optimistic end to the year. Despite facing obstacles due to U.S. political upheaval and a government shutdown, there is still an opportunity for growth. Analysts at Swyftx believe the December quarter could usher in a positive trend for cryptocurrencies, with macroeconomic factors bolstering investor sentiment.
What Is Driving the Optimism?
Economic growth and inflation statistics in the United States are two macro factors that could boost the crypto market in the final quarter of the year. Pav Hundal, lead analyst at Swyftx, noted that these are crucial indicators to watch.
The key things I’m watching in the market are growth, inflation as well as liquidity…When we do see inflation tick up like we are starting to slowly see now, it’s not going to show up in the major economic models until maybe a year down the track, but in the short term it’s a great signal for assets like Bitcoin .
Hundal suggests that robust economic growth might lead to a surge in Bitcoin prices.
How Are Decentralised Exchanges Affecting the Market?
Decentralised perpetual futures exchanges are gaining market share and driving new trends. Projects associated with these exchanges, such as MYX Finance and Aster, have been capturing attention. As Ted Coaldrake, co-host of the Tapping Into Crypto podcast, explained, similar growth patterns were observed with decentralised exchanges like Uniswap in the past. Coaldrake noted that investors might want to consider these trends.
I think even if you don’t care to use these exchanges…you can look at it as an opportunity to jump on the narrative — that is, these exchanges becoming so popular and gaining more usage.
Investors are anticipating whether new offerings in decentralised finance could maintain their current momentum.
While many investors focus on potential profit, understanding the terms related to crypto assets becomes vital. Coaldrake and Hundal addressed basic terminologies like coins, tokens, and ETFs to help investors better understand the crypto landscape. A coin is usually a blockchain’s native asset, such as Bitcoin or Ether, while a token is built on top of an existing blockchain. Meanwhile, ETFs provide a method of investing in crypto without holding the asset directly.
As the year progresses, attention turns to how these factors will interact. Investors and analysts alike are eagerly waiting to see if the predictions hold true. The interplay between macroeconomic indicators and technological advancements in decentralised exchanges could lead to significant shifts in market dynamics.
With varying perspectives from analysts and rapidly evolving narratives, the cryptocurrency market remains dynamic. Whether the predictions will come to fruition depends on several variables and potential market shifts, underscoring the complexities and challenges in predicting market behavior. Investors should remain informed about ongoing developments to position themselves strategically in this unpredictable climate.