July is finally here and everyone who follows the crypto market religiously is probably wondering how things will play out this month. Will the market continue to slip or will the bulls finally resume their rally?
Bitcoin is the biggest factor to consider because it moves the rest of the market. The latest developments regarding Bitcoin are thus essential when determining the market direction. Mass adoption is a hot topic right now especially after it became legal tender in El Salvador. There is potential for a similar trend in other South American countries such as Paraguay where a congressman recently presented a bill that seeks to attract crypto companies into the country.
If Paraguay passes the bill, Bitcoin miners will benefit by accessing cheap green energy while crypto businesses that set up shop in the country will enjoy less friction of entry and access to affordable crypto and fiat banking services. The country charges a corporate tax rate, making it even more attractive to crypto companies. Crypto adoption in Paraguay seems to be taking off quite nicely. One of the major universities in the country plans to start accepting XRP, Ether and Bitcoin as soon as August this year.
A major entertainment company in Paraguay started supporting crypto payments in June. If the recent crypto bill is passed, it will pave way for another bill that will pursue the use of Bitcoin as legal tender. Elsewhere in Panama, the opposition party is also pushing for Bitcoin to become legal tender. It could play out well if passed because Panama is one of the best tax havens in the world. Numerous lawmakers in Mexico are also pushing for Bitcoin legislation. Such legislation might help curtail the use of cryptocurrencies by drug cartels.
June ended with reports of major companies such as Ark Invest pursuing the launch of Bitcoin ETFs. More recent news of growing institutional involvement includes a recent announcement that billionaire George Soros is venturing into Bitcoin trading through his investment fund. Soros’ fund is reportedly eying other crypto assets and is also planning to purchase shares of leading companies in the blockchain segment.
The involvement of high-profile names such as George Soros in the crypto space is a big deal for the cryptocurrency community considering that he is one of the leading authorities in the investment landscape. His involvement in crypto means he understands that there is value to be had, and this will likely fuel FOMO for other investment companies that focus on traditional investments.
An influx of institutional money will likely result in strong bullishness in the crypto market. While Bitcoin will likely deliver some gains, the most growth will come from other cryptocurrencies, especially those that are backed by robust projects. Some blockchains such as the Ethereum, Litecoin and Ethereum Classic networks are slated to go through substantial upgrades. Some of the projects will experience a bigger change than others. Major upgrades tend to have a huge impact on the price of the native cryptocurrency on the upgraded network.
While network changes may result in strong price action, whale movement remains one of the biggest factors affecting the entire cryptocurrency market’s performance. There has been a lot of whale activity in the last few weeks, which was underscored by strong market manipulation. Fortunately, whales only sell so they can buy at lower prices, which means they also want to take advantage of major bull runs. whales have largely been responsible for the bearish market in June in response to market news, and while they could fuel a rally, they might also cause more downward pressure.
Sydney has 20+ years commercial experience and has spent the last 10 years working in the online marketing arena and was the CMO for a large FX brokerage.
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