Kraken Strategy Head Predicts Major Catalysts for Crypto Market in 2024

Four key events that could have a beneficial impact on the cryptocurrency markets in the second half of 2024 have been identified by Thomas Perfumo, the head of strategy at the US-based exchange Kraken. In a recent interview, Perfumo expressed optimism about the future of bitcoin, digital assets and listed five possible triggers.

Perfumo emphasized how interest rates and other macroeconomic variables have shaped the cryptocurrency market. “Yes, I think in the short run I’d say there are about four big catalysts in the second half that I’m looking out for,” he stated. The crucial question is still whether and how much the Federal Reserve will decrease interest rates, given that Europe and Canada have already done so. Riskier assets, like cryptocurrencies, typically benefit from lower interest rates.

He also emphasized the importance of the upcoming Ethereum (ETH) exchange-traded fund (ETF). “Specifically, the Ethereum ETF launch is a big deal that brings a lot of attention on crypto again and brings a lot of capital flows. It’s a rising tide lifts all boats story,” Perfumo noted. The introduction of an Ethereum ETF is expected to draw significant interest and investment into the crypto market.

Global Adoption and Political Landscape

Beyond interest rates and the Ethereum ETF, Perfumo pointed to global acceptance of crypto exchange-traded products as a crucial factor. He mentioned that countries like the U.K. and Hong Kong are launching their own crypto ETFs, which could drive further adoption and investment.

Perfumo also emphasized how the impending US Presidential election could affect the cryptocurrency industry. “Looking forward, U.S. election sets the tone for policymaking and the legislative agenda for the next four years,” he said. The result of the election will have an impact on legislative goals and the regulatory framework, which might have a big impact on the cryptocurrency market.

According to Perfumo’s insights, the future of digital assets seems bright, and these four factors have the potential to significantly increase market interest and growth. Investors and fans will be intently observing how these events play out and influence the future of cryptocurrencies as the second half of 2024 develops.