Key Events for the Crypto Market Forecast

There are a few events that will happen in succession in the next month or two, all of which will affect the crypto market.  Analysts will take note of these events and the public response to them and assess how they’ll change the value of major cryptocurrencies.

Besides those, there are also long-term changes and shifts in attitude towards crypto and tech that have been in play for a while, and that will continue to affect the markets for years to come, if not longer.

Nvidia’s GTC Conference

 Nvidia holds an annual conference in which it presents its products and plans for future technology development.  It was a key event in the computer hardware industry for a long time, but for years, it’s also an event that’s closely followed by those interested in the crypto industry.

Analysts predict Nvidia’s next groundbreaking AI processor in CEO Jensen Huang’s keynote speech.  An astonishing 260% increase over the past year has moved Nvidia to the top of the computer industry.  The use of AI is increasing greatly across the casino entertainment wolrd, and crypto-friendly casinos for CA players are already using it to better predict potential outcomes.

Interest Rates

The FED is considering changing the interest rates.  That’s a decision that will affect the economy as a whole and, therefore, the crypto market.  Growing expectations are that the FED won’t cut the interest rates this time around, so that it won’t be any easier to borrow money.

Inflation is a major concern for the whole economy, and being able to borrow money more easily may increase it.  Inflation also affects the use of cryptocurrencies as many see it as a way to hedge against inflation, as the value of crypto isn’t affected by central banks.

Reddit Goes Public

 Popular social media platform Reddit is supposed to go public this year.  The initial public offering should be supposed to raise billions of dollars right away.  Reddit has a large following and can play a key role in shaping the public mind, as its community of users follows and often influences important business and political events.

Reddit also has a role to play in the popularity of a couple of meme cryptocurrencies, such as MOON and BRICK.  Trading Reddit shares on the stock market will change the markets in general, and it will have a big impact on the crypto trade in the mid-term.

SEC vs. Ripple

 Ripple Labs is a crypto company that’s been around since 2012.  It’s currently in the legal battle with the SEC, and the eyes of the crypto community are fixated on it since it can have a broad impact on the world of crypto.

The SEC alleged that the executives held an initial public offering (IPO) of XRP, which was an unregistered security at the time of raising capital.  According to the complaint, Ripple raised funds by selling XRP tokens in unregistered security offerings to investors in the United States and worldwide.  Additionally, Ripple offered billions of XRP in exchange for non-cash services like market-making and labor.

The next step in the saga is set for March of this year when the two sides will have a public briefing in front of the court.  Investors in the crypto market will watch their arguments closely.

New Rise of Meme Coins 

 Meme coins have been an interesting phenomenon for a while, but they have mostly fallen out of favor as the public has started to consider cryptocurrencies and accept them widely and seriously.  DOGE coin, the largest meme coin out there, was the expectation as it was used as a real cryptocurrency and became more than an internet trend.

The MAGA coin is an interesting new meme coin that came up from the Trump campaign or at least from its online following.  It’s the first coin that’s made to signify a political preference.  The coin is rising in popularity now, during the campaign, but it’s hard to say how well it will do after the election.

Ethereum Dencun Upgrade

 Ethereum has gone through a big upgrade, the biggest one it has had in the last couple of years.  The upgrade was technically complex enough that it stopped trading for a couple of hours.  The main reason for the upgrade is to allow the Ethereum network to become more scalable, accept new users, and have a more significant flow of transactions.

It’s a way for Ethereum to prepare for the changes in the market and for the larger influx of new users and investors.  There’s a growing acceptance of crypto in the traditional financial market, and Ethereum and its smart contract will play a role in it.

Momentum for Bitcoin ETFs

 The introduction of Bitcoin ETFs has been one of the most significant innovations in the world of cryptocurrencies.  ETFs are similar to mutual funds as they are publicly traded, and their value tracks the value of the cryptocurrency.  That way, investors can effectively invest in crypto without having to buy it.  ETFs have, therefore, allowed traditional financial investors, otherwise skeptical towards crypto, to get into the market.

Since ETFs for Bitcoin were approved, they have shown momentum and have grown in size ever since.  Trading volumes in the three most popular spot bitcoin ETFs, the Grayscale Bitcoin Trust (GBTC), the Fidelity Wise Origin Bitcoin Fund (FBTC), and the iShares Bitcoin Trust (IBIT), surged as Bitcoin prices broke out to new 52-week highs in February.  On February 27, IBIT registered record inflows of $520.2 million and a record daily trading volume of $1.36 billion.

Ethereum ETFs Coming Soon

 Ethereum and Bitcoin have always competed against each other as the two most important cryptocurrencies.  Ethereum will, therefore, also pursue its own ETFs as a way to get into the new market and achieve parity with Bitcoin.

The process for setting up an ETF is complex and long.  It’s run by the SEC, and Bitcoin had to wait for more than a year before it could be traded on the stock market.  Ethereum started the process almost three years ago, and there’s nothing to do but wait for the SEC to approve it.

Trends in the Crypto Market

 Bitcoin prices surged in the closing week of February, topping $60,000 and finishing out the month over $61,000, a 42% monthly gain.  Ethereum prices gained 45% in February to close out the month at just over $3,300.

Among the ten largest cryptocurrencies by market capitalization, excluding stablecoins, Ethereum’s big February gain made it the top performer of the month.  XRP (XRP) was the worst performer, with a 12% gain.

Following February’s gains, bitcoin prices are up 45% overall year-to-date, while Ethereum prices are up 47%.

Conclusion

 Crypto markets continue to evolve and, in the last couple of months, have grown as a result of many complex events and long-term trends.  It’s a good time to invest in a variety of cryptocurrencies as there’s a wider acceptance and interest in crypto while there’s an inflation crisis in the traditional economy.

The growth of Bitcoin ETFs, innovations in the tech market, the upgrade of Ethereum software, and the decision not to cut the interest rate will all affect the crypto markets in the years to follow.