Markets
Binance Analysts Say ‘Worst Is Likely Over’ As Bitcoin Trades Near $65,000
Binance Research analysts say they remain “bullish” on the market outlook, expecting upcoming catalysts to position the market “positively for the remainder of the year.”
The crypto industry may have already seen the worst of this year, according to Binance Research analysts, who said in a Friday Report The “incremental negative impact” could be limited since Bitcoin (Bitcoin) regained its positions lost during the harsh month of June.
Analysts admitted that it has become “increasingly difficult to make a profit in the current market environment,” citing negative returns on recently launched projects and the lack of strong venture capital (VC) activity, which can “discourage talent from creating.”
Despite these challenges, Binance Research says the industry is still in its early stages, with capital “continuing to flow primarily into infrastructure projects,” noting, however, that available resources may not be sufficient. “Redirecting some resources to developing useful, diverse, and innovative decentralized applications could help amplify the reach of the crypto ecosystem and attract more users,” the analysts say.
In the future, Binance is banking on launching spot trading with Ethereum (ETH) exchange traded funds (AND F), which is set to begin on July 23, as a key element in “stimulating demand for ETH.” Analysts have warned, however, that the impact may “not be immediate,” drawing parallels with the slow initial reaction that followed the approval of spot Bitcoin ETFs in early 2024.
In addition to spot Ethereum ETFs, Binance identifies interest rate cuts as another potential stimulus for “many different markets,” alongside the Bitcoin halving that took place in April. Historically, Bitcoin prices tend to be higher 12 months after the halving event, Binance notes. At press time, Bitcoin is trading at $64,367, recovering from the $53,000 level reached earlier in June, according to data from CoinMarketCap.