Binance analysts says ‘worst likely behind’ as Bitcoin trades near $65k
Analysts at Binance Research say they remain “optimistic” about the market’s outlook, expecting upcoming catalysts to position the market “positively for the rest of the year.”
The crypto industry may have already seen the worst of this year, according to Binance Research analysts, who said in a Friday report the “incremental negative impact” might be limited as Bitcoin (BTC) regained its positions lost during the harsh June.
The analysts admitted that it has become “increasingly difficult to make profits in the current market environment,” referring to negative returns from newly launched projects and the absence of high venture capital (VC) activity, which may “disincentivize talent from building.”
Despite these challenges, Binance Research indicates that the industry remains in its early stages, with capital “still flowing primarily into infrastructure projects,” noting though that the available resources might not be sufficient. “Redirecting some resources to develop useful, diverse, and innovative dApps may help amplify the reach of the crypto ecosystem and attract more users,” the analysts say.
You might also like: Mark Cuban: Silicon Valley betting on Bitcoin with Trump support
Looking ahead, Binance is banking on the launch of trading with spot Ethereum (ETH) exchange-traded funds (ETFs), anticipated to commence on July 23, as a key trigger to “drive demand for ETH.” The analysts, however, cautioned that the impact may “not be immediate,” drawing parallels to the initial slow reaction following the approval of spot Bitcoin ETFs in early 2024.
In addition to spot Ethereum ETFs, Binance identifies interest rate cuts as another potential stimulus for “many different markets,” alongside the Bitcoin halving that took place in April. Historically, Bitcoin prices have tended to be higher 12 months after the halving event, Binance notes. As of press time, Bitcoin is trading at $64,367, recovering from the $53,000 level it reached earlier in June, according to data from CoinMarketCap.
Read more: Bitcoin’s bullish sentiment in ‘serious decline’
Source
