A crypto bull run and an altcoin season could be on the horizon, aided by the potential Bitcoin breakout, risk-on sentiment, and strong investor demand following Donald Trump’s executive order allowing retirement funds to invest in digital assets. Here are the top reasons why a bull run could start soon.
Crypto Bull Run to Start Amid Bullish Bitcoin Price Patterns
One of the main reasons a crypto bull run could be on the horizon is that the Bitcoin price may surge after forming bullish chart patterns.
The three-day chart shows that the Bitcoin price is being supported by the 50-day Exponential Moving Average. In this case, the uptrend will remain as long as the price is above this average.
Bitcoin has also formed a giant bullish flag pattern, which is illustrated in orange. This pattern comprises a vertical line and a descending channel resembling a hoisted flag.
Moreover, BTC has completed a break-and-retest pattern by moving back to the key support at $112,000, the highest swing in May. Therefore, the BTC price will likely rebound and jump above its all-time high soon. Such a move will lead to more gains in the crypto market.
READ MORE: Just $66 Million! Is the Pi Crypto Price at Risk as Demand Dries?
Federal Reserve Interest Rate Cut Hopes
Further, as BanklessTimes wrote recently, there are rising hopes that the Federal Reserve will start to cut interest rates in September. Several officials, like Christopher Waller, Susan Collins, Michele Bowman, and Neel Kashkari, have all sounded optimistic on the need for cuts.
The case for the cuts jumped after the US published weak nonfarm payrolls data last week. These numbers showed that the US created just 73k jobs in July and an average of 35k in the previous two months.
A crypto bull run and an altcoin season are likely, as these assets tend to do well when the cost of capital is low.
Crypto ETF Approvals
The other case for an altcoin season is that the Securities and Exchange Commission (SEC) is reviewing and collecting data on crypto ETFs. It is considering funds on top cryptocurrencies like XRP, Solana, Polkadot, Hedera Hashgraph, and Litecoin.
Odds are that the agency, under Paul Atkins, will approve several funds later this year. Additionally, it consented to BTC and ETH ETFs under Gary Gensler, the SEC chair, who is anti-cryptocurrency. The already approved ETFs have been successful, attracting over $60 billion in inflows.
Crypto Treaury Accumulation
Similarly, more companies are continuing to accumulate Bitcoin and other coins. Data shows that there are now over 100 Bitcoin treasury companies, with Strategy leading the way with over 630k coins.
More companies are accumulating other tokens. Tron Inc. is raising $1 billion to acquire TRX, while companies like BitMine, The Ether Machine, SharpLink, and BitDigital are investing in Ethereum.
Other companies are buying cryptocurrencies like XRP, Binance Coin (BNB), and Solana. This is a sign of more demand from institutional investors, which will trigger a crypto bull run.
READ MORE: Block Stock Price Forecast After Earnings: Here’s Why XYZ Surged
