The cryptocurrency market: A look into the upcoming changes
The cryptocurrency market has been experiencing significant volatility over the past month, and as we approach the second month of the third quarter, we can expect to see some major changes on the horizon. These changes could have a profound impact on the overall market dynamics and cryptocurrency asset prices, with both positive and negative effects.
Bitcoin Price Prepares to Hit All-Time Highs
Bitcoin is currently positioned to reach a new all-time high, with a slight dip of less than 13% from its peak of $73,800. There is strong momentum and positive sentiment surrounding Bitcoin and other major cryptocurrencies, which could propel Bitcoin to surpass its previous highs in the near future.
With Bitcoin trading at $64,700 and exhibiting signs of strength with a widening downward channel, there is a projected 21% rise in its value. While the increase may not be significant, it is likely that Bitcoin will break out of its all-time high.
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Investors are optimistic about Bitcoin’s upward trajectory, especially as the broader financial landscape evolves. The cryptocurrency’s resilience and increasing institutional interest are key factors contributing to its potential to reach new records.
Political Token Outlook
On the other hand, political tokens are expected to face a decline as enthusiasm for the U.S. presidential election diminishes, particularly following President Biden’s resignation. The initial high interest that drove these tokens is fading, leading to a decrease in interest and investment within this niche sector.
Over the past month, major Politifi tokens such as TRUMP, MAGA, and MVP have experienced declines of up to 65%.
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As the political landscape evolves and election-related fervor subsides, the value and relevance of these tokens may decline. Investors should exercise caution when holding political coins, as the market hype is unlikely to be sustained in the long run.
Altcoin Season Outlook
Looking ahead, the arrival of the altcoin season is not anticipated in August, with overall market weakness expected to persist. Despite occasional rallies, the prevailing sentiment remains cautious, impacting the performance of altcoins. Investors should brace themselves for a subdued month in terms of altcoin returns.
Based on the Altcoin Season Index, the cryptocurrency market is currently in the midst of Bitcoin season. Unless more than 75% of the top 50 non-stablecoin tokens outperform Bitcoin, investors may have to wait longer for the altcoin season to kick in.
Read more: 11 Cryptocurrencies to Add to Your Portfolio Ahead of Altcoin Season
Consequently, the current bearish trend in the cryptocurrency market indicates that altcoins are unlikely to experience significant growth in the short term. Until market conditions improve, the focus is likely to remain on Bitcoin and other major assets.
