The market went into the red after the recent collapse in the price of cryptocurrencies. Ethereum and Bitcoin also suffered.
Bitcoin’s value, which was once about 30,000 euros, has since dropped to 17,000 euros. a value reduction of almost 50%. In the meantime, the price of Ethereum decreased from 2,000 to under 900 euros. Within a few days, everything. An surge in inflation in the US was the cherry on top of the cake. Taking into account all of these variables, there was current cause for concern about a cryptocurrency crash.
The two top cryptos were able to recover thanks to the fact that this was not the case. Today, Bitcoin is worth more than 24,000 dollars, or over 23,700 euros. Ethereum, on the other hand, is selling at slightly more than 1,800 euros today and is close to 2,000 euros.
For Bitcoin and Ethereum, the decline in inflation in the US is a breath of fresh air.
Since dollars are the primary currency used to trade Ethereum and Bitcoin, the influences of the dollar are unavoidable. The decrease in inflation and increase in CPI will probably calm the market. Due to this, it is also plausible to predict a decrease in interest rates from the Fed.
The participants in the cryptocurrency market were persuaded mostly by this last factor. As a result, the price of Ethereum increased, rising by 11.5% in a single day.
The expected interest rate decrease by the Fed requires caution, according to expert William Clemente. According to this one, it would not be advisable to wager on an impending decline in these rates. In spite of this, it is noted that the CPI is 8.5%. The Fed’s predictions for interest rates range from a 75 to a 50 point increase.
Will Bitcoin and Ethereum continue to rise?
It’s unlikely that everyone will feel comforted by Bitcoin’s rising trajectory. Many participants in the Bitcoin industry, including Mike Novogratz, are eager to advise caution.
He claims in an interview with Bloomberg that he is still dubious about Bitcoin reaching $30,000 in value. Contrarily, trader Tone Vays believes that Bitcoin will see a bullish signal in the next weeks.
This rise could be followed by a decline, continuing the market’s cycle of high and low prices. These factors make it evident that perspectives on the Bitcoin upswing are divided.
The second-best performing cryptocurrency on the market also benefited from the declining inflation rate. Ethereum increased from 1662 euros to more than 1800 euros after this rate was revealed. This pattern supports the upward trend seen over the previous seven days.
How much are Bitcoin and Ethereum expected to cost at the end of 2022?
Forecasts for the bullish trend and the inflation rate provide information on the price of these two cryptocurrencies by the end of 2022. Forecasts for the price of ethereum are consistent with the upward trend. They forecast that Ethereum will surpass 2,000 euros by the end of 2022. Further, they predict that by the end of 2023 and 2024, Ethereum will be worth more than 3,000 and nearly 5,000 euros, respectively.
These forecasts indicate a long-term rising curve. The predictions for Bitcoin are likewise upbeat. They estimate the price of Bitcoin to be close to $30,000 even though they do not anticipate it to reach that level by the end of the year.
By the end of 2022, it’s anticipated that Bitcoin will be worth about 27,000 euros. The projections for 2023 are of an average value of 40,000 euros, taking a more futuristic perspective. The year 2024 will be the one in which Bitcoin surpasses the 50,000 euro threshold.
