Since the news about moving CZ to a Halfway house, altcoins have received considerable attention.
In addition to anticipating CZ’s release, other catalysts have put Altcoins in the limelight. Let’s analyze these factors about altcoin gains in more detail.
1) The Repayment of $16 Billion of FTX
The latest events linked to FTX are spectacular, especially the $16 billion repayment plan. In the $16 billion repayment plan, about $12 billion in cash goes to creditors. Many of these creditors that will receive the $12 billion intend to reinvest it into the crypto market.
If they reinvest these funds in the crypto market, it could result in high demand for cryptocurrencies. This whole event would drive prices up and increase the interest in altcoins.
Source: X
2) Global Liquidity Index
The relationship between global liquidity and cryptocurrency prices is fascinating. When global liquidity levels reach certain thresholds, significant market jumps occur.
It may serve the crypto market well since central banks are trying to increase liquidity. Investors may seek valuable altcoins for better yield, thus increasing altcoins’ demand.
Source: X
3) Ethereum ETFs
Ethereum is a major player, and the anticipation around Ethereum ETFs makes it more interesting. While ETFs are not yet approved, crypto analysts believe it is only a matter of time before approval.
When ETFs gain approval, many funds will flow into Ethereum. With this, the price of ETH and related altcoins will increase.
Source: X
4) BlackRock’s BUILD Fund
The BUILD fund by BlackRock increased people’s interest in blockchain technology. It indicates a positive trend toward interest in traditional finance in crypto. BlackRock’s jumping into blockchain projects makes other big players look into altcoins.
Many market analysts say that as institutional funds put money into this area, we’re more likely to see prices shoot up.
Source: X
5) Goldman Sachs and tokenization
Another big name that supports asset tokenization is Goldman Sachs. This shift indicates mainstream finance is moving to cryptocurrencies and blockchain technology.
Since institutions may embrace tokenized assets, they may increase their investment in altcoins. This institutional endorsement can go a long way, influencing retail investors to participate.
Source: X
Conclusion
The crypto market is volatile, but these trends prove that the coming months will be better for altcoin holders. So, you should always ensure you are at the top by researching altcoins. Here is the second part of this article.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
