Prepare for a “Rollercoaster” Ride in the Crypto Market
According to Vance Spencer, co-founder of Framework Ventures, the crypto market is in for a wild ride. Despite the current downward trend in Bitcoin prices, Spencer remains bullish on crypto and predicts two years of volatility.
Factors Driving the Crypto Market Forward
In a recent post on Twitter, Spencer highlighted several macroeconomic factors that will likely propel the crypto market forward. One significant factor is the upcoming Bitcoin halving event, scheduled for April 2024. This event will gradually reduce Bitcoin’s emissions and could support prices in the long term.
Potential Approval of Ethereum ETF
Spencer also believes that the Securities and Exchange Commission (SEC) will approve a spot Ethereum exchange-traded fund (ETF) in the coming months. The approval of Ethereum Futures ETFs by the SEC paves the way for a spot ETF, which could drive institutional adoption and have a positive impact on prices.
Revival of Decentralized Finance (DeFi)
Spencer predicts a revival in decentralized finance (DeFi) following a challenging year in 2022. After the crash in Ethereum and Bitcoin prices, the total value locked (TVL) across DeFi fell below $40 billion. However, TVL has since recovered and now stands above $50 billion. Spencer believes that at least two DeFi projects will generate over $1 billion in revenue within the next two years.
Political and Macro Factors
In addition to these market dynamics, Spencer points to political and macro factors that could support crypto. He mentions the possibility of the Federal Reserve (FED) changing its monetary policy and aggressively slashing rates. On the political side, Spencer sees a high likelihood of a new pro-crypto administration in 2025.
Bitcoin’s Volatility Continues
While Bitcoin remains under pressure and volatile, it is currently down about 10% from its recent high of around $48,700. The market’s response to the recent lows of around $43,000 will determine if the predicted “rollercoaster” ride has begun.
Hot Take: Brace Yourself for Crypto’s Rollercoaster Ride
Vance Spencer, co-founder of Framework Ventures, predicts that the crypto market is in for a wild ride. With upcoming events like the Bitcoin halving and potential approval of an Ethereum ETF, along with a revival in DeFi and supportive political and macro factors, the crypto market could experience significant volatility over the next two years. While Bitcoin prices are currently trending lower, it remains to be seen if this marks the start of the predicted rollercoaster ride. Crypto investors should prepare for ups and downs as they navigate this dynamic market.
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