Bitcoin
Binance Analysts Say ‘The Worst Is Likely Behind’ as Bitcoin Trades Near $65K
Analysts at Binance Research say they remain “bullish” about the market outlook, expecting upcoming catalysts to position the market “positively for the rest of the year.”
The cryptocurrency 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” may be limited, as Bitcoin (BTC) recovered its positions lost during the tough month of June.
Analysts admitted that it has become “increasingly difficult to turn a profit in the current market environment,” referring to negative returns on 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, however, that available resources may not be sufficient. “Redirecting some resources to develop useful, diverse, and innovative dApps could help amplify the reach of the crypto ecosystem and attract more users,” the analysts say.
Looking ahead, Binance is betting on launching spot Ethereum trading (ETH) exchange-traded funds (ETFs), set to begin on July 23, as a key trigger to “drive demand for ETH.” 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 Ethereum spot ETFs, Binance identifies interest rate cuts as another potential stimulus for “many different markets,” along with the Bitcoin halving that occurred in April. Historically, Bitcoin prices tend to be higher 12 months after a halving event, Binance notes. At press time, Bitcoin is trading at $64,367, recovering from the $53,000 level it hit in early June, according to data from CoinMarketCap.