Three Catalysts that Could Send Cryptos Soaring by Year-End

Bitcoin and the crypto sector in general have retreated over the last few weeks, with Bitcoin falling more than 10% since the end of July.

But cryptos have always been volatile—and considering the mainstream media has declared Bitcoin "dead" over 500 times since it became a household name, every dip in the asset's history has been a buying opportunity.

This summer, three catalysts are converging on the $2.2 trillion crypto industry—starting with a wave of institutional acceptance never before seen in the sector's 15-year history.

Crypto Catalyst #1: The "Halvening"

Bitcoin's most recent "halvening"—a feature in its software that makes the crypto exponentially harder to mine—occurred in April but is still being felt in markets.

As seasoned crypto investors know, each of the 21 million Bitcoins that will ever be in existence must be "mined" by computers solving cryptographic problems that become more and more complex over time—thus requiring more and more energy to solve.

This process makes mining Bitcoin more expensive over time—and the "halvening" compounds this by cutting the reward for solving each problem in half. In the earliest days of Bitcoin, miners could extract a "block" of 50 Bitcoins for solving relatively easy problems.

History suggests each "halvening" presents tremendous upside for Bitcoin's price, even if the surge doesn't happen overnight.

In 2012, the first "halvening" dropped the mining reward for Bitcoin from 50 to 25—and Bitocin went on to surge from $12 to over $1,000.

In July 2016, the second "halvening" sent Bitcoin surging from $635 to $2,700.

And in May 2020, the third "halvening" saw Bitcoin roar from around $5,000 to over $65,000 barely a year later.

Crypto Catalyst #2: The SEC's "Green Light" for Bitcoin ETF Options

2024 may well be remembered as the year that cryptos went mainstream for regulators and mammoth financial institutions.

In January, the first-ever bitcoin exchange-traded funds launched, seeing more than $10 billion in trading volume within three days.

This wave of institutional money helped push Bitcoin to $73,000 in March… but another blessing from regulators could give cryptos an even bigger assist.

In September, Bitcoin exchange-traded fund options are likely to go live, according to Bloomberg analyst James Seyffart.

This would mean that, for the first time ever, investors will be able to trade options on these crypto ETFs.

Approval of Bitcoin ETF options would represent both a psychological and market catalyst for Bitcoin in particular and cryptos in general, both for the fact that Bitcoin is increasingly accepted by regulators, and for the wave of buying that this approval—which must be granted would by the SEC—would unleash.

Crypto Catalyst #3: Crypto Champions Heading to Washington

This summer, crypto advocates spent $10 million in California's Senate primary contest, in a successful campaign to keep crypto skeptic Katie Porter out of the United States Senate.

And last week, the crypto lobby pulled off another win by ending the political career of Congresswoman Cori Bush of Missouri, another lawmaker seen as hostile to cryptos.

Both political parties have warmed to cryptos in recent years, as the growing industry flexes its political power. For example, Politico reported that crypto has "shifted the political playing field" as the trade group the Blockchain Association, the firm Coinbase, and Riot Platforms, a Bitcoin miner, spend millions to help elect crypto-friendly politicians.

This November, ongoing spending by the industry could elect the most crypto-friendly Congress in history—at a time when a growing number of Senators are already advocating for the creation of a strategic reserve of Bitcoin for the U.S. government.

There's also the potential for the most crypto-friendly President in U.S. history, as former President Trump recently vowed to make the U.S. "the crypto capital of the planet" and endorsed the proposal for the strategic stockpile of Bitcoin.

Such a stockpile would likely amount to $250 billion in Bitcoin purchases—or the biggest single catalyst in crypto history.

Buy at this blue line and It'll change how you make money from stocks. Click here for the details.

Photo via Shutterstock