By Kimberly Crain
The New York-based crypto exchange Gemini projects the crypto market to grow within the next two years.
On Thursday, the Gemini team stated that the crypto industry is headed in a direction that will attract growth. Speaking at the Institutional Insights, the Gemini Group projected that the crypto industry would expand in the next two years.
Gemini Group Forecast Crypto Industry to Grow
From analysis, the crypto exchange stated that despite the volatile nature of the crypto asset, the enactment of favorable monetary policy and regulation would stimulate the growth of the digital industry.
The Gemini team anticipates that key market players will deploy the advanced infrastructures necessary to drive crypto growth. Reflecting on the market performance of Bitcoin and Ethereum in the past few months, Gemini noted that major crypto has been traded broadly.
The crypto noted that BTC hovered between $53,550 and $72,000 while Ether traded between $2800 and $3970. It was evident that the launch of the spot exchange-traded funds triggered the surge in BTC and ETH prices.
On-chain data shows that shortly after the US Securities and Exchange Commission (SEC) approved the spot Bitcoin ETFs, BTC attained its all-time high of $73,000 in March.
Factors Contributing to Crypto Growth
Consecutively, the approval of Ethereum ETF ETH hit its $4090 all-time high. Since then, BTC and ETH started to lose their bullish steam and dropped to $64,000 and $3125, respectively, according to CoinMarketCap data.
The sudden drop of BTC and ETH has grabbed the attention of analysts who had earlier projected that major crypto would sustain the upward trend. With experts predicting the resurfacing of the crypto bulls market, critics confirm that a long-term cyclical rally was witnessed in Q1 of 2024.
Also read:Despite the price swing, Gemini is optimistic that the crypto market will recover soon. The crypto exchange predicts external factors will contribute to the crypto industry’s growth.
As inflation shows signs of cooling down, Gemini expects changes in monetary policy. A recent report shows that the European Central Bank (ECB) and the Bank of Canada have started to reduce interest rates. This implies that most countries are overcoming the persistent two-year inflationary environment.
With central banks lowering the interest rate, analysts project risky assets such as crypto to grow exponentially. The CME FedWatch Tools show that the expectations for the US to cut the interest rate have increased.
How Does the US Election Determine the Crypto Future?
The Americans expect the US bank to reduce the interest rate by next month. If the bank agrees to reduce the interest rate, the consumers will restore their purchasing power.
Gemini projects that the reduction of interest rates will restore the stability of the US currency, which will positively affect crypto assets. The team projects that crypto prices will drastically increase if the dollar becomes stable. This implies that the regulation changes determine the movement of most crypto assets.
Besides the projected interest rate cut, the Gemini group anticipates the crypto market to grow after the US general election. Political observers have confirmed that the US presidential election will determine the crypto industry’s growth.
As the chances of winning the election for the Republican nominee increase on the prediction market, Americans expect changes within the crypto landscape. In his recent speech, the self-proclaimed pro-crypto politician Donald Trump promised to make the US a Bitcoin superpower.
Trump vowed to create a national Bitcoin reserve if he retakes the White House in the 2024 general election. He promised to end Biden’s war on crypto and fire the anti-crypto legislators.
Gemini envisioned that the enforcement action on crypto would continue to affect the digital space in the future. Despite the regulatory impact, the crypto exchange believes that infrastructure development will foster the growth of digital space.
The Gemini group noted that companies are focusing on scaling solutions to end-user applications that will foster growth in the digital space. Also, the crypto exchange expects the crypto industry to grow due to increased stablecoin adoption and overreliance on prediction when making investment decisions.
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