Why Cryptocurrency market is about to skyrocket?

The crypto market is about to skyrocket regardless of macroeconomic factors and other market trends that have until now kept Bitcoin and altcoins prices under the radar. With multiple developments happening in parallel bolstering the bullish outlook for the cryptocurrency market, experts pointed out reasons why the market could see the biggest short squeeze in human history.

Reasons Why Bitcoin and Crypto Market About To Explode?

Brian Dixon, CEO at Off the Chain Capital, explained why the crypto is near a massive breakout or about to explode. He mentions many reasons that are helping bulls to dominate and strengthen their position in the market.

1. Donald Trump’s Lead in Presidential Race

Bitcoin price is more resilient after a failed assassination attempt on Donald Trump. The Republican presidential nominee Trump’s stance on crypto has picked up in recent months. He also announced crypto donations to his campaign earlier and amassed over $3 million in donations from crypto.

Brian Dixon said digital assets will pick pace, bringing more allocations to Bitcoin and other crypto, following the assassination attempt on Trump. Moreover, he also announced pro-Bitcoin J.D. Vance as Vice President pick.

JD Vance holds $100-$250k in Bitcoin and hates bad crypto regulation. Vance is against Gary Gensler and his inclusion of politics in securities regulation. He has raised serious concerns over Gensler’s approach to regulating blockchain and crypto. The SEC is killing the industry and pushing innovation outside the U.S. not realizing the utilities of various crypto tokens.

Donald Trump confirmed that he will make a presence and give speech at the Bitcoin Conference, which will be held in Nashville, Tennessee on July 25-27. It will be a historic moment for the crypto industry.

2. Spot Ethereum ETF Approval

Spot Ethereum ETFs have received preliminary approval from the U.S. SEC. Some Ether ETFs are expected to start trading on Tuesday, July 23. Bloomberg ETF analysts also posted on X platform about the potential increase in buying activity in the market.

Brian Dixon believes spot Ethereum ETFs will also witness demand similar to spot Bitcoin ETFs. The Ethereum ETFs listing and trading will create an easier on-ramp to ETH trading and with time it will drive price. Moreover, he believes it is also a positive development for additional ETFs for other crypto assets such as XRP and Solana.

3. TradeFi Investments in Bitcoin

The mainstream adoption of Bitcoin and other crypto assets is gradually picking pace as TradFi invested in spot Bitcoin ETFs. As a retail investor, one can now invest in Bitcoin through spot Bitcoin ETFs by using traditional brokerage accounts or apps, creating more adoption of other digital assets. Dixon added that the adoption will continue to grow with time.

Apollo Sats data revealed that 154 entities have submitted the 13F filing to the U.S. SEC. Almost 80% of institutions have increased their holdings in these Bitcoin ETFs. Whilst, only 12.5% have decreased their spot Bitcoin ETF exposure.

4. Solana And Other Crypto ETFs

Historically, the SEC had been extremely restrictive in approving ETFs and these products. But the industry saw a complete shift in the SEC as they reached out to Ether ETF issuers to complete the approval processes. Solana ETFs are anticipated to see approval processes in 2025.

Brian Dixon explained that crypto ETFs will see much larger allocations from sovereign wealth funds, pension funds, and endowments. They have a very long due diligence timeline of 12-18 months before they can start pouring money into the Bitcoin ETFs.

Meanwhile, XRP ETF is also on the cards as Ripple CEO Brad Garlinghouse pointed out after CME and CF Benchmarks announced the launch of new reference rates and real-time indices for XRP. Notably, the price has skyrocketed over 40% in a week.

5. Fed Interest Rate Cuts

The global crypto market witnessed renewed buying sentiment amid growing spot Bitcoin ETF inflow, more buying from institutional and retail investors, and strong technical and on-chain charts. The global crypto market cap is at 2.38 trillion, with BTC price trading near $65,000.

With Fed officials including Chair Jerome Powell’s dovish outlook on rate cuts this year after cooling inflation and slowing labor market, traders eye rate cuts in September. Wall Street giants also predicted a first rate cut in September. Crypto research firms including Matrixport also reported that upside momentum will continue for longer.