The crypto price crash that happened a few weeks ago sent the market into the red. Bitcoin and Ethereum also suffered.
Bitcoin, which was around 30,000 euros, fell and was only worth 17,000 euros. Loss of value of almost 50%. Meanwhile Ethereum went from 2,000 euros to less than 900 euros. All this within a few days. The icing on the cake was an increase in inflation in the United States. All these factors were taken into account at this time in case cryptocurrencies fall.
Fortunately, this was not the case and the two best cryptos were able to recover. the Bitcoin surpasses over $24,000 today ie approximately 23,700 euros. On the other hand, Ethereum is approaching 2,000 euros and is trading today at just over 1,800 euros.
The fall in inflation in the United States is a breath of fresh air for Bitcoin and Ethereum
Since Ethereum and Bitcoin are primarily traded in pairs with dollars, American currency influences are therefore inevitable. The fall in the inflation rate and the rise in the CPI are likely to calm the market. This means that a drop in interest rates from the Fed can be anticipated.
It is this last feature in particular that has convinced crypto market players. Therefore which leads to an increase in the price ofEthereum which had a growth of 11.5% in one day.
According to analyst William Clemente, we need to be careful about the upcoming reduction in interest rates by the Fed. It would be unwise to bet on an upcoming fall in these rates given this one. However, it is noted that the CPI is at 8.5%. The Fed’s interest rate forecasts range from an expected increase of 75 to 50 points.
Ofc expects ETH to outperform from the lows as it should have underperformed on the way down.
My point is that BTC did not offer any beta for the Q’s at all
— Will Clemente (@WClementeIII) August 10, 2022
Will the rise of Bitcoin and Ethereum continue?
Bitcoin’s bullish trend is unlikely to reassure everyone. Some players in the cryptocurrency sector like Mike Novogratz want to be careful.
In an interview with Bloomberg, he says he is still skeptical about Bitcoin’s rally to $30,000. Meanwhile the trader Tone Vays does not go in the same direction and provides a bullish signal for Bitcoin in the coming weeks.
this a fall may succeed a rise, which repeats the cycle of high and low prices in the market. Based on these elements, it is clear that the opinions regarding Bitcoin’s bullish trend are mixed.
The falling inflation rate has also contributed to the second best performing crypto in the market. When this rate was announced, Ethereum rose from 1662 euros to more than 1800 euros. This trend reinforces the increase observed in the last seven days.
“If” the Nasdaq is in a technical rebound before a relapse below mm200 days towards the medium-term dynamics,
So the current rise in Bitcoin is not a buy signal but an exit door. Just sayin’ ‘if’. Don’t forget to raise your stops.
— Nicolas Cheron (@NCHeron_bourse) August 11, 2022
What are the price predictions for Bitcoin and Ethereum at the end of 2022?
The bullish trend and inflation rate forecasts give an idea of the price of these two cryptos at the end of 2022. Ethereum price forecasts are in line with the current rise. They put theEthereum over 2,000 euros at the end of 2022. To go further, they estimate that the value of Ethereum will be more than 3,000 euros at the end of 2023 and almost 5,000 euros at the end of 2024.
These predictions show a rising curve in the long term. For Bitcoin, the forecasts are also optimistic. While they don’t expect Bitcoin to reach the $30,000 mark before the end of the year, they put a value close to it.
It is expected that i at the end of 2022 the value of Bitcoin will be around 27,000 euros. For a more forward-looking approach, the forecasts for 2023 represent an average value of 40,000 euros. The year 2024 will see Bitcoin surpass the 50,000 euro mark.
Although these forecasts are optimistic, they are only estimates. Market fluctuations may confirm or invalidate them at any time.
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