Home Ethereum Bitcoin and Ethereum prices slide amid economic uncertainty

Bitcoin and Ethereum prices slide amid economic uncertainty

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Bitcoin and Ethereum prices slide amid economic uncertainty

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Bitcoin price slid on Friday, falling 3% in the past 24 hours to $38,600. Ethereum followed a similar pattern, trading near $2,800, down more than 3% in the past 24 hours.

Cryptocurrency prices today: Bitcoin, Ethereum

Bitcoin and other cryptocurrencies had a slow start to the week, primarily due to ongoing economic and geopolitical uncertainty. Bitcoin, the largest crypto coin, was able to hold a short-term gain during the early hours of Monday, but then fell below the $40,000 support level in the afternoon and continued to hit multiple lows. throughout the week so far.

The crypto markets sometimes followed stock marketswho experienced a technology-driven selling earlier in the week amid corporate results.

For weeks, the crypto market – like the stock market – has also been under pressure as investors grapple with rising inflation, the continued whirlwind of economic events increasingly stemming from the invasion of the coronavirus. Ukraine by Russia and the potential for tighter monetary policy from the Federal Reserve. The Next Fed meeting fast approaching, which could fuel further uncertainty among investors.

The price of Bitcoin today (April 29)

The major crypto started Friday on a weak note, trading at just under $39,000, down nearly 2% in the past 24 hours.

Bitcoin continues to trade in a relatively tight range around the $40,000 support level, but remains extremely volatile. It has fallen below $38,000 at its lows over the past few days after hitting a high of $43,000 late last week, but that’s normal, according to Kiana Danial, author of “Cryptocurrency Investing for Dummies” and founder of Invest Diva.

In a recent TikTok video analyzing the market, Danial says bitcoin could find “medium-term support at around $37,000 and $31,000.” However, in the long term, Danial believes that Bitcoin will increase in value.

@kianadanial Buy or sell? #bitcoin #btc #technical analysis #crypto #cryptocurrency #cryptok ♬ original sound – Invest Diva Kiana

“After the most recent dips that began in late 2021, bitcoin moved into an ascending channel,” Danial says, pointing to a bitcoin price chart. “It’s a long-term bullish signal.”

Experts say the $40,000 benchmark has become a key level for bitcoin, as its performance from there could determine whether the market enters another bullish or bearish phase. A support level is an area of ​​price where a downtrend can be expected to end due to a concentration of buying interest.

The high point of the year for Bitcoin so far remains in the early days of January, when it almost hit $48,000. During that same month, Bitcoin also hit its lowest level in six months by dropping below $34,000. Bitcoin has lost 40% of its value since its November 10 all-time high above $68,000.

Ethereum Price Today (April 29)

Ethereum has struggled to keep pace this week, trading at just under $2,900 on Friday. Ethereum price is down nearly 5% amid a sharp decline in the stock market earlier in the week and building anticipation for its massive software update.

Called “The Merge,” Ethereum will move from proof-of-work (PoW) to proof-of-stake (PoS), changing the way transactions on Ethereum are ordered, making it more efficient and sustainable for widespread use.

That should happen over the next few months, though a few recent developments suggest that “The Merge” won’t happen in June as previously planned. “No firm date yet, but we are definitely in the final chapter of Ethereum PoW,” Ethereum developer Tim Beiko said in a tweet on April 11.

This, along with several other macro factors, gave Ethereum a shaky start to the year, which in January fell below $2,200 – the ethereum lowest price since July 2021.

“Like all risk assets, crypto prices this year have been disproportionately determined by the war in Ukraine, inflation, and the outlook for Fed policy (especially the timing of the cut),” says Ben McMillanchief investment officer at IDX Digital Assets, a digital asset management company.

What investors need to know about cryptocurrency

The crypto market has been following the stock market more and more lately, which, combined with more mainstream adoption and the drop in prices at the start of the year, makes it even more closely linked to the evolution of the circumstances in Eastern Europe, inflation and the tightening of monetary policy by the Fed, according to experts.

In the short term, these factors have created additional noise and volatility in the crypto and equity markets, but this is usual during times of uncertainty. Volatility is standard in the cryptocurrency market, so experts predict that the ups and downs will continue.

“Increased correlation with other risky assets is to be expected with increased institutional adoption of crypto, and we don’t see that changing anytime soon,” McMillan says.

So what to do with this volatility? Nothing, according to investment experts. Don’t let a sudden price increase change your long-term investment strategy. More importantly, don’t start buying more crypto just because the price goes up.

The price of cryptocurrencies is just as likely to fall back as it is to continue to rise, and experts say this is something long-term crypto investors will need to continue to manage.

This is why you should never invest your money in any crypto-related investment unless you fully understand it. Do your research and only invest what you are willing to lose upfront to avoid panic selling or buying later.

Experts generally recommend keeping your crypto investments below 5% of your total portfolio. Plus, always make sure your financial foundations are covered – from your retirement accounts to emergency savings – before putting extra money into a speculative asset like crypto.

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