The cryptocurrency market is experiencing slight adjustments as major altcoins like XRP, Ethereum, and Stellar decline despite positive signals from U.S. regulators.
Despite the market downturn, experts believe the long-term bullish trend remains strong as new regulations and the participation of major institutions are driving the maturity of the cryptocurrency space.
MAIN CONTENT
SEC Commissioner Paul Atkins confirms that the U.S. government is supporting cryptocurrency and Bitcoin with new laws like the Genius Act.
Bitcoin is adjusting around $117,900, with Ethereum and XRP also experiencing slight declines after recent surges.
Experts predict that the cryptocurrency bull market could last for several years, similar to the gold trend from 2004 to 2011.
What causes the cryptocurrency market to adjust at this moment?
SEC Commissioner Paul Atkins has just confirmed that the U.S. government considers cryptocurrency and Bitcoin to be an accepted field, marking progress in legal terms. Nevertheless, after strong price surges, the market is adjusting to consolidate the trend.
Atkins emphasized: “The signing of the Genius Act on stablecoins marks an important development, helping to mitigate risks and shorten settlement times.” According to him, this lays the foundation for sustainable innovation in digital assets.
"The U.S. government has provided a clear approval for cryptocurrency and Bitcoin, promoting responsible regulation and innovation in the digital ecosystem."
Paul Atkins, SEC Commissioner, 05/2024 (CNBC)
The Bitcoin market is trading around $117,900, down from a recent high of $123,000. Altcoins like Ethereum have fallen below $3,790, with XRP also declining after previously reaching $3.62. This is seen as a normal technical correction following the earlier high breakout.
What is the impact of new regulations on the cryptocurrency market?
Regulators are preparing to implement a cryptocurrency market structure bill in September or October to clearly define the roles of the SEC and CFTC in oversight. This is expected to create a transparent legal framework, promoting sustainable development.
The bill not only facilitates stablecoins but also enhances control over potential risks, while minimizing fraudulent activities in this nascent market.
"The upcoming legal framework will help increase transparency, motivating investors and businesses to develop cryptocurrency products safely."
Jane Parker, Cryptocurrency Risk Management Expert, 2024
What is the long-term trend for Bitcoin and Altcoins in the coming year?
The adjustment is a normal reaction following a strong price surge that helps the market consolidate and prepare for the next step in the long-term trend.
According to Davis, the involvement of ETF funds, major financial institutions, and businesses is the foundation for the market to establish a sustainable growth trend, similar to the gold bull market from 2004 to 2011.
Research from Bernstein predicts that Bitcoin could reach $200,000 by early 2026, while warning that the current cycle will be prolonged and may cause fatigue for investors.
Cryptocurrency Market Factors Gold Market (2004–2011) Bull Market Duration Expected 5–7 years, extending to 2027–2028 Approximately 7 years Key Participants ETFs, financial institutions, large businesses Individual and traditional institutional investors Price Volatility Wider and more frequent More stable with clear trends
What should investors prepare for to capitalize on this trend?
The emergence of clear regulations and the entry of major institutions opens opportunities for long-term investors. Risk management and reasonable portfolio allocation are key to leveraging opportunities in the volatile market.
Lark Davis recommends that investors stick to their HODL strategy and avoid being swept up in short-term fluctuations to enjoy potential profits from the long bull cycle.
Frequently Asked Questions
1. How does the Genius Act affect the cryptocurrency market?
The Genius Act focuses on managing stablecoins, reducing risks, and improving payment speeds, creating a solid legal foundation for the development of digital assets.
2. How high can Bitcoin go in the current bull cycle?
Many experts forecast that Bitcoin could reach $200,000 by early 2026, based on trends and the involvement of major financial institutions.
3. Why is the market adjusting despite positive signals from the SEC?
The adjustment is a normal response after strong price surges that helps the market consolidate and prepare for the next step in the long-term trend.
4. How long will the cryptocurrency price trend last?
According to analysis, the upward trend could sustain until 2027 or 2028, similar to previous gold bull cycles.
5. What should investors be aware of during market fluctuations?
Risk management and maintaining a long-term investment strategy will help minimize the negative impact from volatility while optimizing profit opportunities.
Source: https://tintucbitcoin.com/xrp-eth-xlm-giam-du-co-trump/
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