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Bitcoin experienced a black Monday, briefly trading below $50,000 before stabilizing around $53,000. But the adventure doesn’t stop there for the queen of cryptos. In fact, Do Kwon, the former head of Terraform Labs, will be extradited to South Korea after his arrest in Montenegro. This return will not be easy for him, as he will have to answer for his misdeeds in the Terra/LUNA ecosystem.
Bitcoin Storm: Institutional Adoption Stands Firm
Last Monday, Bitcoin fell below the $50,000 mark, a hard blow for investors who still had hopes for stability. The cause of this drop is not directly related to the crypto market itself, but rather to broader fears in stock and economic markets.
The analysts at Bernstein attribute this correction to “fears in the stock markets” and general economic concerns.
However, despite this volatility, institutional adoption of Bitcoin remains strong. Bitcoin ETFs continue to attract steady inflows, with contributions exceeding $17 billion since the beginning of the year.
« We don’t see any additional downsides for crypto here » claim the analysts, emphasizing that institutional adoption trends remain solid.
The Role of U.S. Elections in the Crypto Market
The U.S. presidential elections are shaping up to be a key factor for the crypto market’s evolution in the third quarter of 2024. Bernstein analysts note that Bitcoin remains a “Trump trade”, with the crypto market having a preference for the former president, perceived as favorable to cryptocurrencies.
Recent polling data shows a tight race between Trump and Vice President Kamala Harris, with 50 and 49 percent, respectively. This political suspense adds a layer of uncertainty, influencing Bitcoin and cryptocurrency prices.
However, even with this uncertainty, institutional involvement in the crypto space continues to grow.
Recent approvals from major financial institutions and the anticipation of more approvals coming in the third and fourth quarters should provide new avenues for asset allocation towards Bitcoin.
- Bitcoin ETFs attracted over $17 billion in 2023.
- The U.S. presidential election has a significant influence on the crypto market.
Despite the recent turbulence, Bitcoin has maintained its dominance in the cryptocurrency market. Investors can remain optimistic, as institutional adoption continues to grow, and Bitcoin’s fundamentals remain strong.
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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.