Is There a Chance for Another Explosive Growth in the Crypto Market?

[Ben Graham]

For now, Bitcoin continues to react positively to US inflation data, preparing to enter a new bull cycle. However, one of the key crypto exchanges published a report yesterday warning that the BTC market has matured significantly—meaning the times of easy money for corporate buyers of BTC and other altcoins are over.

The report notes that simply copying the BTC strategy of companies like Strategy is no longer enough to secure high returns on BTC investments. While it's positive that more and more such firms are entering the market, the odds of seeing huge price swings are becoming less realistic. The report emphasizes that institutional investors now conduct much more thorough analysis of fundamentals, risks, and potential returns before allocating significant capital to digital assets. This involves deep-dive research of technology, regulatory environment, and the competitive landscape of each project.

Meanwhile, Fidelity SOL ETF (#FSOL), Canary HBAR ETF (#HBR), and Canary XRP ETF (#XRPC) have been added to the Depository Trust & Clearing Corporation (DTCC) website, which handles trade clearing on NASDAQ. This is an important step toward broader acceptance of cryptocurrencies by traditional financial institutions. Including these ETFs in the DTCC system makes trading and settlement easier, potentially attracting more institutional investors interested in crypto, but who prefer regulated and transparent instruments. It also signals that interest in crypto-based ETFs continues to surge. Institutional investors such as hedge funds and asset managers see ETFs as a convenient way to get crypto exposure without dealing with the complexities of direct ownership and custody.

Adding new ETFs to the DTCC shows that NASDAQ and other major exchanges are ready to expand their lineup of crypto products. In turn, this may bring even more capital into the crypto market and support its further growth and development. The introduction of these ETFs creates new portfolio diversification and profit opportunities from the growth of the crypto market, all within a regulated environment.

Trading Recommendations:

Bitcoin technical picture: Buyers are currently targeting a return to $116,000, which opens a direct path to $117,500, and from there it's a short step to the $118,600 level. The farthest target will be the high in the $119,300 area; a breakout above this level would signal strengthening of the bull market. In case of a decline, buyers are expected around $114,600. A move below this area could quickly push BTC down to $113,200, with the most distant bearish target at $111,900.

Ethereum technical picture: A convincing hold above $4519 opens the way straight to $4601. The ultimate target will be the $4723 high; a breakout above this level would signal renewed bull strength and rising buyer interest. In case of a decline, buyers are expected around $4418. A dip below this zone could quickly pull ETH down to $4347, with the further bearish target at $4272.

What's on the chart:

• Red: Support and resistance levels—prices from which slowdowns or strong surges are expected
• Green: 50-day moving average
• Blue: 100-day moving average
• Bright green (lime): 200-day moving average

A crossover or test of any moving average usually stops or can set a new impulse for the market.

The material has been provided by InstaForex Company - www.instaforex.com