Home Ethereum It’s been a boring week for Bitcoin and Ethereum prices. Don’t expect it to stay that way

It’s been a boring week for Bitcoin and Ethereum prices. Don’t expect it to stay that way

0
It’s been a boring week for Bitcoin and Ethereum prices.  Don’t expect it to stay that way

We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money.

Bitcoin and Ethereum have been boring lately.

Considering 15% daily swings are the norm in the crypto market, prices haven’t moved much in recent days, with bitcoins steady near the $19,000-$20,000 range and ethereal floating around $1,100. The two biggest cryptocurrencies seem to be hovering around their current price levels with no clear direction in sight.

“At this point, $19,000 to $20,000 are simply pre-last big bull market highs of 2017,” says Stéphane Ouellette, CFA and founder of FRNT Financial, an institutional capital markets and advisory platform focused on digital assets. In other words, it’s hard to predict what will happen next and when. “The futures curves for bitcoin and ethereum are completely flat, implying that the market is also completely uncertain about the future direction,” he says.

Yet the crypto market remains under intense pressurewith the imminent possibility of another slowdown. Low how low bitcoins going in the coming weeks or months will depend on “if the stock market has bottomed out and if any major crypto companies go into liquidation,” according to Edward Moya, principal market analyst at OANDA, a brokerage firm.

“A plethora of bearish crypto stocks continues to push bitcoin below key technical levels. Sentiment will take some time to improve, especially after many predicted crypto trades collapsed,” Moya says, referring to crypto exchange eToro. abandonment of an agreement to go public via the SPAC merger, while many struggling companies like BlockFi and Voyager are looking for offers to stay afloat.

What’s going on with crypto prices and what does it mean for investors?

Bitcoin Wednesday is up nearly 2.5% in the past 24 hours, trading near $20,000. The price of Ethereum held steady near $1,100, up 3% in the past 24 hours. Although the two biggest cryptos have seen a small rebound over the past day, experts say we are not out of the danger zone yet.

Bitcoin and ethereal have lost more than two-thirds of their value since last November, and experts are predicting crypto prices could go down even more now that the price of bitcoin has fallen below $20,000 several times over the past few weeks. On top of that, investors still feel uncertain about the current economic conditions, as galloping inflationa potential recession in the United States, rising interest rates and a unstable stock market.

“Bitcoin is stuck in its current trading range due to ‘nervousness’ among market participants,” says Joshua Fernando, CEO of Bitcoin. eCarbon. “They’ve had some wild swings over the past few months that have devastated the market, so it’s reasonable that they’re now trading cautiously.”

Martin Hiesboeck, Head of Blockchain and Crypto Research at Defendsays bitcoin is not moving much below or above the $20,000 level due to “lack of stimulus.”

“There is no doubt that the market expects macroeconomic news and less tension on geopolitical issues – the war in Ukraine, the specter of inflation and a possible recession being by far the biggest worries,” he says.

So what should crypto investors do in light of this? Nothing, say the experts. If you’ve been investing in crypto for the long term using a buy and hold strategy, price swings are to be expected and sharp declines aren’t too much of a concern.

Experts recommend keeping your cryptocurrency investments at less than 5% of your portfolio, as long as your crypto investments don’t get in the way of your other financial goals. Always prioritize save for an emergencyprofitable high interest rate debtand contribute to a traditional pension plan before investing in crypto. If you are in a good place financially and ready to enter the market, experts say now can be a good time to buy bitcoin or ethereum while prices are low, keeping in mind that prices could fall further.

“Perhaps like stocks, investors have gotten a bit caught up in the ‘buy everything’ frenzy of 2021 and are sitting on the sidelines waiting for signs that balance has been restored and the bull market is over. back,” says Fernando.

LEAVE A REPLY

Please enter your comment!
Please enter your name here