Hello everyone! Welcome to the Divicoins blog, where we regularly share crypto market insights, based on the requests submitted by our audience. Today we want to discuss some Q3 projections for the upcoming quarter, given the first half of 2024 ended positive and now, crypto enthusiasts would like to know what might happen next. We are not entitled to give any advice on what to buy or sell, so take this post as an analysis of top major cryptos.
BTC price – what do you need to monitor?
Of course, we want to start with the BTC price, because it’s still the leading cryptocurrency of the world. With a $1.2 trillion market capitalization and over $20 billion in daily volumes on all exchanges, Bitcoin remains a barometer for the broad crypto market.
As a result, as we enter Q3, attention should shift to the US Dollar and also, interest rates in the United States. Since the BTC price is in USD, how the global reserve currency performs could influence the appetite for crypto as well.
Moreover, the market is expecting the Federal Reserve to begin a rate-cutting cycle in upcoming months, which might have an impact on global liquidity, and thus appetite for financial assets, including Bitcoin.
It is yet to be seen whether the FED will meet market expectations, given the disappointment we’ve seen so far. At the beginning of 2024, 6 rate cuts were priced in, but as inflation failed to ease in line with the central bank’s projections, rates remained unchanged. All the dynamics around rates, expectations and FED projections could generate volatility on both sides of the market.
ETH price – an ETF will land soon?
Let’s move on to Ether, another cryptocurrency covered by Divicoins. In this case, the last couple of months saw the market focus on a US-listed ETF based on Ethereum. Same as with Bitcoin, enthusiasm grew because that could mean more inflows into the second-largest coin in the world.
However, so far the Securities and Exchange Commission (SEC), the US government agency approving such financial instruments, has been reluctant to give the green light, leading to a temporary setback in Ether.
Moving into the 3rd quarter, we expect the market to remain focused on this issue and if the ETF will finally be approved, Ether volatility should spike as well once again.
LTC price – lack of momentum
The 3rd coin we want to discuss is Litecoin, which seems to lack momentum, at least for the time being. Market participants seem to be less focused on this token and that acts as a feedback loop, leading to a less-inspiring performance.
Still, it’s worth noting that LTC has a $5.6 billion market cap, which continues to be significant when compared to other altcoins. Considering the coin is relatively flat during the first half of 2024, we believe the summer months should be calm, with tighter and tighter daily ranges.
Summing up
Since a new quarter has just started, we hope our post managed to provide some basic insights into the BTC price, ETH and LTC. So far, the year has been positive for crypto enthusiasts, and hopefully, the path will be the same moving forward!
