The crypto market is expected to flourish over the next two years, driven by favorable monetary policy, regulatory shifts, and infrastructure developments, according to a recent Gemini report. Despite recent market volatility, the report highlights a combination of factors that will drive growth and increase market capitalization.

The past three months have seen a period of consolidation, with major cryptocurrencies like Bitcoin and Ethereum fluctuating within narrow ranges. However, this consolidation follows significant price surges earlier this year, driven by the launch of exchange-traded funds. While prices have cooled, the broader outlook remains positive.

Gemini identifies the shifting stance of global monetary policy as a key driver of growth. Central banks have begun cutting interest rates, which has historically boosted risk-on assets like Bitcoin and gold. A potential US rate cut in September could bring significant new liquidity and upward momentum to the Bitcoin price.

Regulatory developments are also expected to play a crucial role in the market's expansion. The upcoming US Presidential election has the potential to impact the cryptocurrency regulatory landscape, with candidates like Donald Trump and Kamala Harris expressing pro-crypto stances. Infrastructure development within the crypto space is also poised to enhance market growth, with the rapid growth of stablecoins and increasing traction of prediction markets cited as potential drivers.

While concerns exist about the current focus on scaling solutions over end-user applications, the report suggests this phase is necessary for future growth within the sector. With this optimistic outlook, there is an interesting precedent for price action in the coming months, highlighting high-potential investment opportunities.

In conclusion, the crypto market is expected to continue its growth over the next two years, driven by a combination of favorable factors. Despite recent volatility, the broader outlook remains positive, with potential drivers like monetary policy, regulatory shifts, and infrastructure developments poised to enhance market growth.