As Q2 ends and Q3 begins, Bitcoin bulls are left wondering what could be in store for the cryptocurrency. Bitcoin retreated from its all-time high registered at the height of Bitcoin ETF mania and is down around 13% since March. The sell-off in Q2 sharply contrasts the 67% rally and 57% jump seen in the previous two quarters.
Q2 weakness has raised concerns over whether cracks in the momentum trade could hurt the outlook for the coming Q3. Typically, July is a strong month for Bitcoin, but here are some alternatives to consider.
Ethereum
For several reasons, Ethereum, the second biggest cryptocurrency, should be considered a top altcoin for July 2024. Firstly, the strategic advantage of the spot ETH exchange-traded fund, expected to get final approval from the Securities and Exchange Commission (SEC) near the start of the month, cannot be overstated. This will enable providers such as BlackRock, Fidelity, and Grayscale to launch their spot ETFs, making it easier for institutional and traditional investors to get involved with Ethereum, which could boost its demand.
Following the spot Bitcoin ETF launch, Bitcoin’s price rose to a record high a few months later. While we are not expecting new ATHs in the coming months in Ethereum, we expect this development to support the higher price over the longer term.
Solana
Solana is a key player in the blockchain arena, buzzing with activity fueled by the mem coin craze. However, more recently, Solana has been outperforming Bitcoin and other altcoins as new developments have supported strong gains in the cryptocurrency. Firstly, there have been some key technical developments, including ZK compression and blinks. ZK compression is a feature that promises to reduce cost and improve scalability for developers.
Meanwhile, Blinks is a tool that enables users to perform blockchain transactions directly from websites and social media platforms. This integration brings blockchain technology to everyday internet users, which breaks down previous.
VanEck also applied for SOL ETF, which is unlikely to be approved immediately but, according to Bloomberg analyses, could be approved in the coming years.
Avalanche
After being oversold in June, AVAX could be ready for a rebound in July. Avalanche has been another top performer in recent sessions and could continue its recovery.
The recent rise in AVAX is also related to ongoing ETF discussions, with some analysts believing that Avalanche is among the few cryptocurrencies that could receive ETF approval by 2025. These predictions do make some sense. Avalanche is one of the highest-growing altcoins this year, maintaining a total volume above $18 billion. It is also attracting attention due to its technical strength, processing faster transaction speeds at lower costs to Ethereum. Popular companies, including gaming giant Konami, have launched NFTs on the Avalanche, increasing the demand for the network as its ecosystem expands.
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