Ethereum is at the top and Bitcoin soars. The crypto price crash that took place a few weeks ago plunged 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. A loss of value of nearly 50%. Ethereum meanwhile 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 taken into account there was at this time to fear of a collapse of cryptocurrencies.
Fortunately, this was not the case and the two best cryptos were able to recover. Bitcoin today exceeds the bar of 24,000 dollars or around 23,700 euros. Ethereum, on the other hand, is approaching 2,000 euros and is trading today at just over 1,800 euros.
The drop in inflation in the United States is a breath of fresh air for Bitcoin and Ethereum
Since Ethereum and Bitcoin are traded in pairs mainly with dollars, the influences of the American currency are therefore inevitable. The fall in the inflation rate and the rise in the CPI is likely to reassure the market. This also makes it possible to anticipate a drop in interest rates from the Fed.
It is especially this last element that convinced the players of the crypto market. Thus causing a rise in the price of Ethereum which had a growth of 11.5% in one day.
According to analyst William Clemente, we must be cautious about the upcoming cut in interest rates by the Fed. Betting on an upcoming drop in these rates would not be wise according to this one.
Nevertheless, the observation is made that the CPI is at 8.5%. The Fed's interest rate forecasts go from an expected increase of 75 to 50 points.
Will the rise of Bitcoin and Ethereum be continuous?
The bullish trend of Bitcoin is not likely to reassure everyone. Several players in the cryptocurrency sector such as Mike Novogratz are keen to advocate caution.
In an interview with Bloomberg, he says he remains skeptical of a Bitcoin rally to $30,000. The trader Tone Vays meanwhile does not go in the same direction and foresees a bullish signal for Bitcoin in the coming weeks.
This rise could be succeeded by a fall, thus repeating the cycle of high and low prices on the market. Based on these elements, it is clear that the opinions on the bullish trend of Bitcoin are mixed.
The falling inflation rate also boosted 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 over the last seven days.
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 place Ethereum above 2,000 euros at the end of 2022. To go further, they estimate the value of Ethereum at more than 3,000 euros at the end of 2023 and nearly 5,000 euros at the end of 2024.
These predictions point to a rising curve over the long term. As for Bitcoin, the forecasts are also optimistic. Although they do not expect Bitcoin to hit the $30,000 mark before the end of the year, they put it at a close value.
It is expected that by the end of 2022 the value of Bitcoin will be around 27,000 euros. For a more forward-looking approach, the forecasts for 2023 are of an average value of 40,000 euros. It is the year 2024 that will see Bitcoin exceed the 50,000 euro mark.
These forecasts, although optimistic, remain only estimates. Market fluctuations may at any time confirm or invalidate them.
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