In a rising but risky cryptocurrency market, Bitwise CIO Matt Hougan highlights four factors that could boost prices by year-end.
Government Cryptocurrency Purchases
The first catalyst Hougan points to is government purchases of Bitcoin. While ETFs and corporate investments dominate demand, government participation remains minimal. Countries like the Czech Republic might unexpectedly alter the situation, potentially raising prices for Bitcoin and altcoins.
Monetary Policy and Volatility
The second key point is central banks' monetary policies. Hougan notes that Bitcoin remains high in a high-interest environment. If the market witnesses more aggressive rate cuts, Bitcoin's price could surge significantly.
ICO 2.0 as a New Incentive
The third catalyst relates to the adaptation of ICO, as mentioned by SEC Chairman Paul Atkins. The 'Project Crypto' initiative could lead to new capital influx and revive the issuance cycle in the cryptocurrency sphere.
Overall, according to Hougan, potential positive changes could significantly impact the market by year-end, driving growth in leading cryptocurrencies.
