Bitcoin prepares for a sharp rise in the second quarter amid speculations about halving and ETFs

Bitcoin is likely to have a strong second quarter, supported by important upcoming events and market expectations. The cryptocurrency market is filled with excitement as two major catalysts scheduled for April to June are right around the corner.

First, it has historically been associated with bullish trendsBitcoin halving eventIt is expected to push Bitcoin to an unprecedented level.

Second, in the crypto community, the Securities and Exchange Commission (SEC), which approved a Bitcoin ETF in early JanuaryRulings on Spot Ether ETFsStrong expectations have been placed on it.

Nonetheless, the US Federal Reserve (Fed)'sInterest rate reduction stanceThere is a possibility that it will have the biggest impact on the Bitcoin and crypto landscape.

Zach Pandl, head of research at Grayscale Investments, emphasizes that the Fed's short-term interest rate plays an extremely important role in determining the appreciation of the dollar, and as a result, the appeal of cryptocurrencies as an alternative means of storing value is determined.

The US Federal Reserve (Fed) statement at the end of last year suggested the possibility of future interest rate cuts and raised expectations in the cryptocurrency market.

Nonetheless, since the inflation rate has risen again, questions have been raised about the timing and possibility of interest rate cuts. presentlyJune interest rate cutThe possibility of61%It suggests that.

Pandor emphasizes that the Fed's choice will have a major impact on market sentiment, and suggests that interest rate cuts amidst a strong economy and stable inflation could be a major support for cryptocurrencies.

Bitcoin's performance was remarkable, with a 66% increase in the first quarter, as reported by Coin Metrics,13% increase in MarchIt was.

This upward trend is due to the success of spot bitcoin ETFs in the US, which experienced a sharp increase in demand and have risen from 40,000 bitcoins at the beginning of the year to 213,000 bitcoins now.

The impending Bitcoin halving (an event where mining rewards are cut in half to control supply) is another important factor affecting Bitcoin's price and volatility.

According to the survey, there is a possibility that current sell-side liquid inventory will only meet demand for 12 months at the current growth rate, which suggests the possibility of price increases after the halving event.

The SEC's decision on spot ether ETFs scheduled for May 23 brings a new level of anticipation.

The potential impact of this decision on the market will grow stronger while combining lively discussions prior to approval of the Bitcoin ETF and the current regulatory calm.

Meanwhile, the recent gathering of Coinbase in Washington highlights the efforts of the crypto sector to negotiate regulatory hurdles, particularly amid the SEC's close investigation of the Ethereum Foundation and the broader impact on ether transactions and ETFs.