The crypto market is in a tumultuous state as of late, with Bitcoin trading down 2.6%, and ether down 1.4%, as BRC-20 meme coins have caused network congestion to slow them both. While the trend is toward more investment, understanding the story of the current market is key to keeping up with the rapidly changing crypto world.
Crypto Market Insights: Ether Potential Outperform Bitcoin
To better understand the current crypto market, Katie Stockton, Founder and Managing Partner of Fairlead Strategies, recently offered her insights on CoinDesk TV. According to Stockton, the market “does seem to like” the current, slightly lower Consumer Price Index numbers and while they “recently broke down below their 50-day moving averages,” she believes the price point could still serve as a nice entry point for new investors. Ether is facing short-term setbacks, she said, but with the support of a lower price point around $1,755, there is potential for Ether to outperform Bitcoin in the short term.
Finding New Narrative for Bitcoin Price Increase
An important factor for crypto prices to increase will be for Bitcoin to find a new foundational narrative. According to Brent Xu, CEO and co-founder of Web3 bond-market platform Umee, this narrative needs to be found before Bitcoin has a chance to break out of its current range. Speaking on CoinDesk TV’s “All About Bitcoin” program, Xu noted that the recent excitement around Bitcoin as an alternative to banking had failed to spur launch sustaining momentum. This, he believes, is due to the individual banking organizations themselves not quite understanding the implications of using crypto to manage money.
Xu could be onto something with his banking substitute theory. On May 25th Paul Eisma, head of trading for XBTO Group, released a statement saying that some of the growing pains being experienced by the Bitcoin protocol are merely an indicator of its growth, and ultimately could be solved by holders of meme coins taking their profits and moving them to altcoins or Ethereum.
Crypto Holders: Bankruptcy, Bitcoin, Gold, Property, Yuan, Halving
The Banks’ weak financial state also could be favorable for crypto holders. According to former BitMex CEO Arthur Hayes, the Western banking system is bankrupt, and he recommends putting your money in assets such as Bitcoin, gold, property and Chinese Yuan. He goes on to make the claim that stocks and bonds are no longer a safe option, and even expresses his surprise that Bitcoin has yet to reach $70,000 this year, something he believes could be due in part to another halving in 2024.
Unlocking Crypto Market: Seeking New Narrative
It’s clear from the current market chaos that the crypto world is seeking a new story that can be widely accepted, something that can act as fuel for the continued price increases that investors have come to expect. Unfortunately, this isn’t something that can be found overnight. Crypto lovers around the world can only hope that the narrative they seek is found, and it will shift the market in a sustainable direction. Whether it manifests as a banking substitute, an inflation hedge or a gold alternative, the new narrative could be the key to unlocking the crypto market.
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