Interested in everyone with cryptocurrencies! 'Early May' warning for the market

Cryptocurrencies, especially Bitcoin, gained significant momentum in 2023. Bitcoin has gained 65% since the beginning of the year. But the question of how much of this profit crypto money investors can catch became more important because the market has been looking for its popularity in 2021 with candles recently. While investors are waiting for the next rally, experts point to the regulations for a healthy rally. Here are the developments in the crypto asset market...

Bitcoin maintains its horizontal movement at $ 27,400 with a decrease of about 0.3 percent since the previous trading session. It has become one of the winning tools.

However, there are still many question marks in front of crypto money. On one side of the world, China bans it completely, while on the other, the US tries to keep it under pressure through its regulatory agencies.

While the statements from the USA, SEC and Fed, and other institutions create the agenda in the market, we see regulatory attacks from the UK and Russia for crypto from time to time.

THE WORLD IS SEPARING IN TWO

Market participants, on the other hand, expect a rally similar to the one in 2021. Cryptocurrency analyst Beste Naz Süllü evaluated the latest developments in the sector for CNN Türk Finans.

What's going on in the crypto asset market?

Capital markets regulators are currently divided into those that accept cryptocurrencies and those that try to block cryptocurrencies.

We can give examples from the USA-Hong Kong and China. While Hong Kong, which regulates cryptocurrencies, considers them securities, this will not be like the US, as the regulator will not sue the projects and will allow applicants for cryptocurrencies. Despite China banning cryptocurrencies, it wants to make Hong Kong the 'London' of Asia.

In the US, last week, SEC Chairman Gensler's silence in questions about cryptocurrencies in the House of Representatives and his imposition of securities based on the Howey test from the 1930s were met with worldwide reaction and created a lack of credibility in the eyes of even his biggest supporters.

This deregulatory process of the SEC causes the technology to shift to China and smuggle companies out of the country, causing the US to lose its role as employment, tax and flag carrier.

The UK was very prohibitive before, not even allowing the advertisements of cryptocurrencies. I do not find the UK, which we expect to collect taxes in the years 2025-2026, serious and sincere as it takes this issue only as taxation.

REGULATION IS NEEDED

While the first 4 months of the year passed with such regulation issues, Bitcoin gave back some of the gains it received, reducing its gain from 72 percent since the beginning of the year to 65 percent.

But we know that the most important shortcoming of the sector is regulations and where investors are protected and stock markets are regulated, the base of crypto usage will expand.

Recently, Ethereum went through an update and there were significant price movements, the halving process for Bitcoin is approaching. Since there is a rally in the market in every halving, what do these technical bends mean in the upcoming period?

In April 2024, it will be Bitcoin's fourth halving. After the halving in 2020, the market had increased by 800 percent in a year.

FED MOVEMENTS ARE IMPORTANT

However, it would not be a correct assessment to attribute this only to halving, because the Fed balance sheet, which was 4 trillion dollars in the same period, was increased to over 8 trillion dollars. Pandemic aid was given directly to households and companies.

For this reason, it can be expected that the halving will have a positive effect on Bitcoin from the supply side, but halving of miner revenues will also trigger miner sales.

For this reason, there should be no question marks regarding the regulation processes in order to have a positive effect on the market.

ATTENTION TO THESE DATES

What is your short-term and long-term price prediction for Bitcoin, based on the charts and data you reviewed? In my short-term predictions for Bitcoin, there is a possibility of approaching 40.000 levels in early summer. For this, Bitcoin, which is priced in the 27.300 region in the short-term period, should never fall below the 25.500 level.

Although there is no new money inflows to the market at the moment, some of the deposits that escaped due to the bank crisis, especially in the USA, may invest in Bitcoin returns this year. In this way, money inflow can be provided from the USA after China.

Withdrawal requests will be processed on Lido Finance, the largest pool of Ethereum locks opened in early May.