TechFlow news, Matrixport released a report stating that the cryptocurrency market is currently focused on Bitcoin, Ethereum, and Trump-themed meme coins. Declining U.S. inflation rates could drive Bitcoin higher due to ETF fund inflows, while the SEC's imminent approval of a spot Ethereum ETF has prompted traders to position early. Trump’s support for cryptocurrencies is boosting related meme coins.
Average returns in June exceeded 4%, with July showing even stronger performance at over 8%. Bitcoin is projected to achieve gains of more than 12% in the next two months. Bitcoin is attracting increased attention from traditional financial investors, with its momentum shifting from new use cases and applications to macroeconomic factors such as inflation data.
The report forecasts that as the November 2024 presidential election approaches, Bitcoin prices will rise if Trump, who supports cryptocurrencies, gains momentum. Since the release of the report "Trump Could Be Bitcoin’s Biggest Bull This Year," the market cap of Trump-themed meme coins (Trump-USDT) has tripled, reaching $600 million.
The report highlights significantly growing political support for cryptocurrencies in the United States. Following the SEC's approval of ETF applications, $4 billion flowed into perpetual futures markets. Historical patterns indicate that ahead of the launch of Ethereum ETF trading, investors typically take profits on long Ethereum positions.
