Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
The cryptocurrency ecosystem may see the biggest positive sentiment in the next three months. At least, this is what entrepreneur and Bitcoin (BTC) investor Lark Davis thinks. The crypto bull listed a couple of events scheduled for the next 90 days and how they will likely determine the outlook of the digital asset sphere going forward.
Federal Reserve rate cut in September
The first event on his list is an interest rate cut by the United States Federal Reserve, which he believes might occur in three weeks.
Alex DovbnyaDuring a press conference in July, Jerome Powell, the Federal Reserve chair, announced that the central bank is ready to implement a much-awaited rate cut in September. Although many investors feared an emergency rate cut, it did not happen.
The odds of a rate cut in September are quite high, reaching up 95%. Galaxy Digital CEO Mike Novogratz perceives rate cuts as a bullish catalyst for Bitcoin in 2024. He believes this would also benefit other digital assets in the broader crypto ecosystem.
The upcoming U.S. elections and the assumption of a pro-crypto leader could be another catalyst.
Return of CZ and regional adoption
Davis acknowledged that Binance's former CEO, Changpeng "CZ" Zhao, would return to the scene after four months in prison.
He believes this might be good for the crypto sector, although CZ has not commented about actively returning to crypto. Instead, he established an institution called Giggle Academy for children and suggested that he would venture into the use of Artificial Intelligence (AI) tools.
Tomiwabold OlajideOther activities likely to impact the crypto sector in the coming three months are FTX's redistribution of $16 billion in cash to crypto-native degens and Russia's plan to turn pro-crypto with international crypto payments.
There are also rumors that China might soon unban crypto. Lark Davis believes that if this happens, the crypto sector might see an epic surge.
Yuri Molchan
Vladislav Sopov
Dan Burgin
Alex Dovbnya