Crypto bill, stablecoins, new ETPs to drive Q4 crypto returns

Crypto prices are anticipated to rise in the fourth quarter due to new crypto market structure legislation in the US, stablecoins, and a surge in exchange-traded products (ETPs), according to analysts. Grayscale's research indicates this legislation could enhance integration with traditional financial services. The Securities and Exchange Commission's approval of commodity-based ETPs may increase the availability of crypto assets for US investors. Analysts expect crypto to benefit from the Federal Reserve's recent rate cuts. Analysts predict the rising use of stablecoins and institutional applications, with larger players exploring tokenized funds and bank deposits. Bitcoin and altcoins are also expected to thrive, with increasing flows from funds and automated contributions. One analyst noted that Bitcoin's rise is likely to trigger a larger altcoin boom. Revenue-generating DeFi projects are seen as a promising sector in Q4, supported by anticipated ETF approvals in the US. However, rate cut expectations might disappoint as economic conditions stabilize.

Source 🔗