Santiago R Santos, a well-known figure in the crypto world, recently shared his market outlook for the rest of 2024. Here’s a concise breakdown of his key predictions:
All-Time Highs for Major Cryptocurrencies
On a positive note, Santos started his analysis with Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) to hit new all-time highs by the end of 2024. He believes their strong fundamentals and increasing institutional interest will drive this growth.
Analysis of the truth behind: At present, Bitcoin needs to secure its position at $67,000 to reach $73,000 within the next five days. This will open doors for $85,008, which would mark a 32.26% increase from its current level. BTC’s 14-day RSI is 39.03, indicating bearish sentiments amidst 2.35% volatility and a Fear & Greed Index score of 63. The 50-day SMA and 200-day SMA stand at $66,419 and $56,501, respectively.
Ethereum (ETH) and Solana (SOL) could move strongly during the upcoming altcoin season. ETH is trading at $3,497.86 and could grow 2.56% to $3,616.83 in 30 days. In the previous 24 hours, SOL fell 4.29% to $131.44, yet it continues to aim at $150, a 15.88% increase.
Underperformance of Tokens with Large Unlocks
According to the analyst, the current choppy scenarios show tokens with massive upcoming unlocks are expected to bleed. Santos links this with the funds aiming to surpass their previous high watermarks, leading them to sell off large quantities of these tokens unevenly. This selling pressure results in price suppression and market instability for these tokens.
Hence, investors should monitor high-quality S-tier projects like Arbitrum for signs of stabilization. Increased stablecoin inflows could indicate a bottom for altcoins, suggesting renewed investor confidence.
DeFi’s Comeback
However, Santos sees a revival in Decentralized Finance (DeFi). He notes that original DeFi projects are slowly gaining traction and could see increased interest, especially with the integration of real-world assets (RWAs) and the potential impact of an ETH ETF.
The Crucial Role of ETH ETF
Moving on, Santiago R Santos emphasizes the critical impact of the ETH ETF’s performance in 2024, outlining two potential scenarios.
Firstly, if investor interest wanes due to macroeconomic softening, ETH’s status as a risky asset could diminish. This scenario depends heavily on the broader economic environment and NVIDIA’s performance.
Strong ETF inflows could position ETH uniquely as a tech-focused investment, appealing to new investor classes. Santos believes this narrative shift could lead ETH to reach new all-time highs by December.
Feeling bullish or bearish? Let us know.
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