In the last few weeks, there have been some significant developments within and outside of the crypto industry. Notably, the feds in the United States announced that they would be pausing any plans of an interest rate hike, ensuring that it would remain at 5.25 to 5.5%.
This move has had an effect on the crypto industry in that Bitcoin and many major altcoins saw a price spike. As of this article, Bitcoin is just under the $30,000 mark and is more than double what it was last year. Other tokens like Ethereum have also seen positive market movements as whales have withdrawn massive amounts from major exchanges and this has propelled the value of the token. There is also the BlackRock Bitcoin ETF application that many industry watchers believe will break the years-long spell of the United States not having a crypto ETF available to investors.
These have been positive developments for the industry because it means that it can end the year on a high note, which is the opposite of what happened last year. On top of this, it could signal the early stages of a bull run which could finally end the crypto winter that the industry has been enduring for many months now. And then there is the effect of this on consumers.
On the investment side, those who have been HODLing their tokens can have a chance to sell them off for a profit. This improved market performance will also likely lead to newer investors who want to take advantage of the prices of major tokens.
Then there are the consumers who use cryptocurrency for non-investment purposes. There are businesses like restaurants, hotels, entertainment centers, casinos that are not on gamstop, and so on that accept cryptocurrency for their services. Those who use cryptocurrency to pay for these might either find their buying power significantly increased or might even turn more of a profit as in the case of casino players.
And we can’t forget about the businesses in the crypto industry. A consistent theme over the last year has been major crypto businesses having to close down shop or fire workers due to the poor market condition. The value of major cryptos increasing means that many of these businesses will see more revenue and this could reverse the unfortunate trend.
Historically, cryptos coming out of a winter and soaring to new heights is thanks to the combination of several factors at just the right time. Last time, it was a combination of post-pandemic excitement, acceptance of crypto by major platforms like PayPal, and so on. Now, the decision by the feds, BlackRock’s ETF application, and the activities of whales seem to be what does the trick.
If these prices continue to rise, we will see not just Bitcoin rise to the top but many altcoins as well. And, of course, the industry will be all the better for it.