Crypto Market Weekly Recap: Setting the Stage for an Explosive Rally

Welcome to our weekly recap of the crypto market, where we delve into the latest developments shaping the landscape of digital assets.

Last week was particularly eventful, with several key announcements and market movements laying the groundwork for what could be an explosive rally in the current bull market.

Coinbase’s Smart Wallet Launch

First off, Coinbase (NSDQ: COIN) unveiled its latest innovation: its Smart Wallet. These next-generation wallets aim to streamline on-chain participation for over a billion users.

Yes, you heard that right. Coinbase is trying to target a billion crypto users with this new product.

The Smart Wallet tackles the most significant hurdles in the crypto experience — complex onboarding, network fees, and recovery phrases. It offers a gas-less on-chain experience paired with multichain support and integration with major applications.

This simplicity makes onboarding to the blockchain as seamless as logging into a favorite website. Users can create a free, secure self-custody wallet in seconds, eliminating the need for separate wallet app installations. With a Coinbase Smart Wallet, users can effortlessly mint NFTs (nonfungible tokens), trade on decentralized exchanges, or engage with DeFi (decentralized finance) apps in just a few clicks.

The platform also supports cross-app portability, enabling users to take their wallet, identity, and balances to thousands of popular on-chain apps.

For developers, integrating the Smart Wallet offers significant benefits, including access to gas credits, participation in the Base Buildathon, and potential exposure during the Onchain Summer event.

This latest offering from Coinbase represents a significant leap forward in the world of self-custody and on-chain transactions, with the potential to drive widespread adoption and transform the crypto landscape.

Robinhood’s Acquisition of Bitstamp

Another noteworthy event was the announcement of Robinhood’s (NSDQ: HOOD) acquisition of Bittamp, a leading crypto exchange.

Bitstamp is the oldest continuously operating crypto exchange. While Bitstamp never was able to enter the upper echelon of top crypto exchanges, Robinhood may be able to take the business to a higher tier.

This move by Robinhood reflects the growing mainstream adoption of cryptocurrencies and the increasing interest of traditional financial institutions in the crypto market. It also further shows that Robinhood, one of the largest financial apps in the world, is committed to crypto.

The acquisition could further accelerate the integration of crypto into mainstream finance and pave the way for greater accessibility and liquidity in the market.

Record Bitcoin ETF Inflows

The spot Bitcoin (BTC) ETFs (exchange-traded funds) had their best week of capital inflows ever. This is an extremely encouraging sign that Wall Street remains bullish on Bitcoin despite the current price.

The ETFs have driven Bitcoin to all-time highs early in the cycle. They’ve been the number one catalyst for this bull market so far. The record inflows only boost our confidence that this isn’t a flash in the pan. Institutional demand for BTC isn’t slowing down.

Rate Cuts

Both the European Central Bank (ECB) and the Central Bank of Canada recently cut benchmark interest rates. This could put pressure on Jerome Powell and the Federal Reserve to commit to rate cuts of their own in the near future.

These rate cuts could also have significant implications for the crypto market because they may drive investors toward alternative assets such as Bitcoin and other cryptocurrencies as a hedge against fiat currency devaluation.

The Stage Is Set

As you can see, the background is shaping up for a bullish run in the crypto market.

Keep in mind that Bitcoin managed to hit a new all-time high before the April halving this year. That was a first for Bitcoin and further evidence that this cycle could be special.

Now BTC is trading just below its recent all-time high and could break higher at any moment. We have all the makings of a crazy bull market that could be about to rocket off to the next level.

Many crypto investors were disappointed in the last crypto bull market. Sure, Bitcoin still ended up more than tripling its previous all-time high of $20,000, but many investors had higher hopes.

This led many crypto analysts to think that perhaps each consecutive crypto bull market would get less and less explosive than the last. That’s a reasonable train of thought…

However, there was one thing holding the entire market back last cycle: the FTX scandal. Sam Bankman-Fried and his cronies embezzled millions of dollars that FTX users thought were being used to buy crypto.

What price would Bitcoin have hit in the last cycle if that money had actually reached the market? It could have taken BTC much higher.

The Bottom Line

In conclusion, the crypto market is experiencing a period of unprecedented growth and innovation. With Bitcoin reaching new all-time highs, major acquisitions by mainstream platforms such as Robinhood, and the launch of user-friendly products such as Coinbase’s Smart Wallet, the stage is set for an explosive rally in the current bull market.

As rate cuts and economic uncertainty drive investors toward alternative assets, cryptocurrencies stand to benefit from increased adoption and investment inflows. However, it’s essential to remain vigilant and mindful of potential risks and challenges along the way.

Stay tuned for more updates and insights as we continue to navigate the dynamic world of crypto together. Until next time, happy investing!

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This article previously appeared on Investing Daily.