After the hectic first quarter, the eyes turned to the second quarter of the cryptocurrency market.
The first quarter of 2023 in the crypto industry was very fast and hectic. The sector, which turned into a bear market, managed to have a colorful first quarter with the bull run in 2023. In this quarter, the rises on the Bitcoin and Ethereum side attracted attention. Also, the majority of altcoins received bull signals.
After all this first quarter, crypto investors are focused on the second quarter in light of possible news feeds and planned events.
What to Expect in the Second Quarter?
Looking at the first quarter report of the crypto money market, it was observed that many cryptocurrencies entered the sector in a sensational way. Arbitrum attracted attention especially with the airdrops. In the second quarter, the sector was also at the forefront of the returns and effects of the global economy. After all these flows, what kind of second quarter awaits crypto investors? We’ve compiled what’s going to happen in the crypto industry in the next 3 months.
1- The Ripple Case and Its Possible Consequences
The SEC lawsuit with Ripple, which has been going on for years and has kept the crypto industry eagerly waiting, has entered the final straight. Especially in conversations on Twitter, it is said that Ripple will win the case and the crypto industry will breathe a sigh of relief. However, there is no certainty about when this case will be concluded and who will win.
Among all these streams, the shares of Ripple supporter John Deaton drew attention. Ripple lawyer Deaton claimed that between 30 and 90 days, Ripple would win the case. A few lawyers are also waiting for the case to be concluded, the court has started to get all the data.
In times when the crypto industry is trending upwards, Ripple’s news feeds can be a bit of a lifeline to the markets. However, Ripple news is more effective in pricing in terms of XRP. When we examine all these processes, it seems likely that the second quarter will be active in terms of Ripple and XRP. If the case is concluded, the possibility of seeing an upward trend stands out. However, if the case is not concluded, there may be a decrease in expectations on the XRP side. It is also among the topics discussed that if XRP loses the case, the markets may be severely affected.
2- Ethereum Shanghai-Capella (Shapella) Update and Its Effects
In the crypto industry, one of the most important events of the second quarter can be shown as the Ethereum Shanghai-Capella (Shapella) update.
Shapella, which is seen as one of the most important updates expected since last year, is emerging with the aim of making Ethereum more efficient and more scalable. However, one of the most important issues that Shapella will affect the markets is the ETH assets that are locked. An ETH close to $33 billion will be unlocked after the Shapella update. This could affect Ethereum and indirectly the cryptocurrency market.
Also, the fact that Ethereum is more adapted to the deflationary system and takes on a faster structure can be a lifeline in the ecosystem. Because on the side of smart contracts and decentralized applications, the activity of the Ethereum network is observed. Ethereum, one of the most actively used blockchain networks, can be compromised by network sags.
ETH, the second largest cryptocurrency in the crypto industry by market cap, is focused on this update. The update that the Ethereum network will experience has the potential to affect the course of the second quarter.
3- Chiliz and Sports Initiatives
Chiliz (CHZ), one of the predecessor projects of Fan Tokens, carries on its back the views that it can launch a new Fan Token bull. The second quarter seems to be quite active and active for Chiliz.
Popular Fan Token and sports organizations project Chiliz is launching the sports blockchain on May 10, 2023, according to CoinMarketCal. In these days when the fate of Fan Tokens is wondered, a new door can be opened in the industry with such a move. If Chiliz successfully advances its Fan Token initiatives, it has the potential to start a new trend in the second quarter.
However, as it is difficult to predict the future of the industry from a simple blockchain update, Chiliz’s different initiatives in this process can be considered.
Strong rises in Fan Tokens in the past day give hope for the second quarter.
4- SEC and CFTC Pressures
Just like in the first quarter, the pressure from US regulators on crypto is expected to continue in the second quarter. The breakthroughs that the SEC and CFTC will make have the potential to affect the trajectory of the crypto industry.
Going after major exchanges such as Binance, Kraken, Huobi, FTX, these regulators say they will not stop until complete security is provided on the crypto side. Still, the reflection of pressures from the CFTC and SEC on the crypto side is not critical.
However, considering the second quarter, it seems likely that regulators will put many crypto projects on their radar, especially Binance. This can set up a bear and bull cycle. In the coming period, it is discussed that Binance’s investigations will be clarified and many crypto processes will be brought to the litigation level.
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