Binance analysts says ‘worst likely behind’ as Bitcoin trades near $65k

Binance Research analysts say they remain “optimistic” about the market outlook, expecting upcoming catalysts to position the market “positively for the rest of the year.”

The crypto sector may have seen its worst this year, with the “incremental negative impact” likely to be limited as Bitcoin (BTC) regains its lost ground during the difficult June, analysts at Binance Research said in a report on Friday.

Analysts acknowledged that “making a profit in the current market environment is becoming increasingly difficult”, noting that “talent may be deterred from building” due to negative returns from newly launched projects and a lack of high venture capital (VC) activity.

Despite these challenges, Binance Research notes that the industry is in its early stages and capital is “still primarily flowing into infrastructure projects,” but that current resources may not be enough. “Diverting some resources to developing useful, diverse, and innovative dApps could help expand the reach of the crypto ecosystem and attract more users,” the analysts wrote.

Looking ahead, Binance is banking on the launch of spot Ethereum (ETH) exchange-traded funds (ETFs) trading, expected to begin on July 23, as a key trigger to “increase ETH demand.” However, analysts warned that the impact “may not be immediate,” drawing parallels to the initial slow response that followed the approval of spot Bitcoin ETFs in early 2024.

In addition to spot Ethereum ETFs, Binance describes interest rate cuts as another potential stimulus for “a lot of different markets” alongside the Bitcoin halving that occurred in April. Historically, Bitcoin prices have tended to be higher 12 months after a halving event, Binance notes. As of press time, Bitcoin was trading at $64,367, recovering from the $53,000 level reached in early June, according to data from CoinMarketCap.