Last week was an eventful week in the crypto market. So I’ve put together a video presentation to give you a full recap of what’s been going on — including why I believe the market has bounced from its recent lows.

The article below is an edited transcript.

Market Developments

Last week, we saw some interesting price action in the markets thanks largely to some notable updates to crypto policy and regulation.

Since mid-March, Bitcoin (BTC) has fallen from a peak just above $73,000. Bitcoin dropped roughly 24% to bottom out at just under $57,000 on May 1. However, since reaching that low, Bitcoin has been on an uptrend.

Having analyzed the charts, I believe that May 1 marked the low of the recent correction period. Currently, Bitcoin is up by nearly 19% since that May 1 low. This suggests that the worst of this price correction might be behind us.

Bitcoin’s Influence on the Market

Bitcoin often leads the market out of correction periods. Seeing Bitcoin move past its correction phase indicates that the general crypto market might follow suit. However, this doesn’t mean we’re about to rally to new highs immediately.

The market has been heading in a bearish or neutral-to-bearish direction for about two months. The move from $73,000 to $57,000 over the course of two months was relatively mild compared to past corrections.

In the coming months, I expect a neutral to slightly bullish market, with gradual price increases rather than sudden rallies. By the end of the summer or early fall, I anticipate a more significant rally.

Altcoins Are Showing Strength

As Bitcoin leads us out of these lows, other corners of the market are moving, too.

For example, Solana (SOL) has had a tremendous start to May. After rallying from its December 2022 low of roughly $8.50, Solana surged to around $210 in March 2024 but lost over 40% by May 1. However, since then, Solana has regained its bullish momentum, rising by about 40%.

Another noteworthy performer is Render (RNDR), a crypto artificial intelligence (AI) project focused on visual rendering. Render is up about 45% from May 1, hitting a high of 68% by May 10. The strong performance of AI projects and memecoins in 2024 highlights the market’s hottest sectors.

As we move forward, sticking to successful strategies involving AI projects and memecoins could be beneficial.

Policy and Regulatory Developments

The recent bullish sentiment can be partly attributed to developments surrounding the SAB 121 rule. This rule, which has been adopted by the U.S. Securities and Exchange Commission (SEC) under Chair Gary Gensler, aims to limit banks from keeping custody of Bitcoin and poses significant challenges for banks involved with spot Bitcoin exchange-traded funds (ETFs).

However, a bill to repeal SAB 121 passed the House and, after substantial advocacy from the crypto industry, also passed the Senate this week.

This victory for the crypto community has instilled optimism that regulatory attitudes might become less hostile, especially with the upcoming presidential election. The industry’s voices have been heard, potentially leading to a more favorable regulatory environment.

Final Thoughts

As we head into a potentially quieter period in the crypto market, it’s essential to think about your strategy and prepare for the future rallies that I expect to begin toward the end of summer or early fall.

Patience and preparation are key.

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