After a turbulent year, Bitcoin and Ethereum prices are rising. But some experts say investors aren’t clear on recent price movements.
The two largest cryptocurrencies are still down more than 50% from their all-time highs at the end of last year. However, the cryptocurrency market recovered strongly in July as usual. Can investors be informed that Bitcoin and Ethereum have already crossed the lows of this cycle?
As of Wednesday, Bitcoin held near $24,000 and Ethereum topped $1,800 after the release of new inflation data. It led to a rise in currency markets. Over the past 24 hours, Ethereum’s price surged 8% while Bitcoin’s price rose nearly 4%.
But some experts remain skeptical about what the recent price rise means in the long run.
Marcus Sotiriou, market analyst at digital asset broker Global Block, said: “The Fed is still tightening and inflation is still high, so I’m not convinced the market will reverse at this point.” teeth [Fed Chairman] Jerome Powell began by saying that rate hikes have had a noticeable impact indicating that we are in the late stages of this bear market and that it has been about eight months. “
Have Bitcoin and Ethereum Prices Bottomed?
Bitcoin and Ethereum have been gaining momentum for the past few weeks. While Bitcoin and Ethereum’s price spikes have been eye-opening, the link between cryptocurrencies and the stock market could be a sign of future volatility.
With the stock market performing its best since 2020 in July and continuing its rally in August, it can be argued that cryptocurrencies are now benefiting from the rally in equities, according to broker Tastyworks. CEO Scott Sheridan said. Similarly, if stock prices fall again, cryptocurrencies could follow suit.
“I think we will probably see something similar happen with cryptocurrencies once we see the market abandon some of its recent gains,” says Sheridan.
Crypto educator and market analyst Wendy O is also not convinced that Bitcoin and Ethereum have hit their lowest prices this cycle. Oh said the market will see “a real capitulation in the second half of the bear market”, which she believes will continue for another year or two. Surrender is the moment when an investor loses all confidence in the price outlook, even after it has fallen. These images show what the surrender of Bitcoin and Ethereum might look like next year, said O.
While it’s impossible to predict cryptocurrency prices with certainty, O says Bitcoin and Ethereum are showing signs of falling past June lows of $17,500 and $900. And continued economic and political uncertainty could lead to even more market volatility in the weeks and months to come.
“In the previous bear cycle, both cryptos corrected by 85%,” says O. “We expect Bitcoin to reach $10,000 and Ethereum to reach $750.”
What Crypto Investors Should Do Amid Continued Volatility
The only guaranteed thing about crypto investing is volatility. Nearly a year ago, the price of bitcoin he climbed to $68,000 and now he is below $25,000.
These ongoing fluctuations are a reminder that not everyone has a risk tolerance for cryptocurrencies. If you are interested in crypto, please note that investing in crypto is very risky and only 5% of his investment portfolio should be allocated to crypto assets. Still, only do it if your risk tolerance is high. There is no guarantee that you will get the money, or even that the money you put into the cryptocurrency market will come back.
Invest only in what you can afford to lose, and only after other financial priorities are in place, such as saving for emergencies, paying off high-interest debt, or contributing to a traditional retirement plan. Invest only.
The volatility of Bitcoin and Ethereum so far this year shows the extreme volatility facing cryptocurrency investors. If you’re interested in investing in cryptocurrencies, or have already put your money into Bitcoin, experts advise focusing on long-term growth potential rather than panicking about short-term fluctuations. Recommended.
