For a market that typically has only ever trended up and to the right for over a decade now, crypto can really attract the pessimists. Everybody loves to jump on the bandwagon when things are good, but when crypto prices hit a roadblock the bears start coming out of the woodwork.

Bitcoin (BTC) gained close to 170% in 2023, and then followed that up by gaining another 70% in the first 3 months of 2024. Of course, that was when the crypto market ran into its first significant correction since the bear market.

Mid-March began a multiple month long price correction that saw BTC drop from about $73,000 all the way down to under $54,000. That’s a fall of about 27%, relatively mild in the longer history of cryptocurrency bull markets. However, based on the attitudes of the talking heads you would’ve thought it was the end of crypto forever.

After hitting the low of about $53,500 on July 5th, BTC has now gained about 20% and is trading right around $65,000. We’ve seen enough to know that the price correction is finally over and the worst is behind us. Keep your eye out for when Bitcoin breaks above that red downtrend line that started way back in March. After it breaks through that key resistance it won’t be long before it hits another all-time high.

Now that we can begin to look ahead again and cut out the pessimistic attitude, let me go over some key reasons why we ought to be bullish right now.

Ethereum Spot ETFs Launching Soon

First, Ethereum (ETH) spot exchange-traded funds (ETFs) are set to launch just next week on July 23. This development is a significant milestone for the crypto market as it marks the entry of Ethereum into mainstream financial products. Historically, the introduction of financial products like ETFs has led to increased institutional investment and higher market confidence. There have been rumors recently that institutions are even more bullish on Ethereum than retail, which is a very rare thing in this market.

Bitcoin saw substantial gains following the approval of Bitcoin futures in late 2017. The introduction of Ethereum spot ETFs could similarly drive up prices and bring more legitimacy and liquidity to the market.

ETH has already been on a tear over the last couple weeks and has gained 22% since the July 5th low. However, it is still trading below the price of $3,800 which it hit as soon as the ETF applications were approved. Something tells me that these ETFs are not priced into the market right now.

Positive Regulatory Trends

Secondly, regulation trends are turning positive. Given the political shift in attitude towards crypto stemming from Donald Trump’s Mar-a-Lago meeting, there are many reasons to think regulation could and will improve in the near future. Trump has now come out as very pro-crypto, and many big-time crypto proponents have made significant donations to his campaign.

Trump’s new VP pick, Ohio Republican Senator J.D. Vance, not only owns Bitcoin and a substantial amount of other cryptocurrencies but also possesses extensive knowledge of both crypto and artificial intelligence. With a potential Trump administration shaping up to be actively pro-crypto, we can expect a more favorable regulatory environment that could spur further market growth.

Incoming Liquidity Boost

Lastly, there is incoming liquidity. The Federal Reserve is likely to cut rates in September, which would reduce the cost of borrowing and potentially increase investment in riskier assets like cryptocurrencies.

Additionally, other governments and central banks around the world are also expected to inject liquidity into their economies. Historically, periods of increased liquidity have been bullish for the crypto market. For example, the massive monetary stimulus during the COVID-19 pandemic in 2020 coincided with a significant bull run in cryptocurrencies, driving Bitcoin and Ethereum to new all-time highs.

Furthermore, the influx of liquidity from global central banks not only stimulates economic activity but also encourages investors to seek higher returns in markets such as crypto.

With interest rates potentially decreasing, traditional savings and fixed-income investments may offer lower yields, prompting investors to explore alternative assets like cryptocurrencies. This shift in investment strategy could lead to substantial inflows into the crypto market, driving up demand and prices.

Final Thoughts

The combination of Ethereum spot ETFs, favorable regulatory trends, and incoming liquidity from central banks are all compelling reasons to be bullish on the crypto market right now.

With these factors in play, the stage is set for potential significant growth in the months ahead. Despite all of the recent negativity, now is the time to zoom out and focus on the bigger factors at play. There are massive tailwinds coming for this market very soon, so now is the time to jump in and prepare yourself.

Editor’s Note: Crypto is making ordinary investors rich, and it also serves as an inflation hedge. But you need to make your move now before the next leg-up in the crypto bull market of 2024. Every day you wait is literally costing you thousands in profits.

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