Bitcoin settles above $23,000 after touching $25,000 for the first time in more than two months on August 15
Bitcoin stabilizes above $23,000 amid growing concerns
Bitcoin Holds Above $23,000 After touching $25,000 for the first time in more than two months on August 15, most other major cryptocurrencies are trading in a tight range as they tend to cool off after seeing violent volatility recently.
Have Bitcoin and Ethereum Prices Dropped?
After a turbulent year, Bitcoin and Ethereum prices are up, but some experts aren't ready to say that investors are well aware of recent price swings.
The two largest cryptocurrencies are still down more than 50% from all-time highs late last year, but in a typical fashion the market has risen. Crypto Significantly this past July, as Bitcoin surged over 30% and Ethereum surged by 70% since the market crash in June, is this a sign to investors that Bitcoin and Ethereum have crossed the cycle lows?
Bitcoin traded near $24,000 and Ethereum rose above $1,800 last week, after the release of US inflation data during July, as inflation eased slightly from all-time highs, in turn triggering a rebound in the stock and cryptocurrency markets, but some experts say They remain skeptical about what the recent price hike could mean in the long run.
Investing is risky and you should be careful
“It is true that the Fed is still tightening, inflation is still too high, so we can’t believe the market reversal at this point,” says one crypto expert, adding that while Bitcoin and Ethereum have gained impressive positive momentum for several weeks, the Cryptocurrency's correlation with the stock market could be a sign of volatility ahead.
The stock market had its best performance since 2020 in July and continued to show gains in August, so you can say that cryptocurrencies are currently benefiting from a stock market rally, by the same measure, if stocks fall again the cryptocurrency might follow, so if we start In seeing the market give up some of its recent gains, you might see something like this in cryptocurrencies.
Some analysts are not convinced that Bitcoin and Ethereum have bottomed out in this cycle, and argue that the market will see a subsequent “real capitulation” in a bear market that is likely to last one to two years. Capitulation is a moment when investors lose faith in price expectations even if Prices fell.
Although it is impossible to predict cryptocurrency prices with certainty, there are signs of Bitcoin and Ethereum slipping to June lows of $17,500 and above $900, but continued economic and political uncertainty could lead to more volatility in markets in the coming months. the coming weeks and months.
In previous bearish cycles both cryptocurrencies have corrected at 85% so Bitcoin is likely to reach $10,000 and Ethereum to $750, so crypto investors should be aware of the volatility of this emerging market.
In terms of investing in cryptocurrencies, the only thing guaranteed is volatility, about a year ago the bitcoin price was as high as $68,000 and now it's back below $25,000. Remember, investing in cryptocurrencies is a big risk and you should allocate only 5% of your wallet to crypto assets, however, only do it if you take a high risk.
A professional technical and economic analyst in global financial markets since 2004. He holds a Master’s in Business Administration from the American University in Cairo. He works as an economic writer and technical analyst for many international financial companies. He writes daily economic and technical analyzes for many Arabic and English websites specialized in the field of stock exchanges and financial markets.
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