- Bitcoin and Ethereum slightly revived this week.
- Bitcoin recorded its highest in the month, reaching $22500 on Monday.
- Meanwhile Ethereum had a massive 40.06% rise in its value in the past seven days.
In recent months, the crypto market went through a heavy turmoil. Be it leading cryptocurrencies, Bitcoin and Ethereum or large crypto platforms such as Celsius, everyone faced the wrath of cold winds in the crypto market.
Global factors such as the war in Ukraine, rising inflation or Fed-increasing interest rates, affected the economy, indirectly influencing the crypto market. But the situation started worsening with the collapse of Terra. On May 9th, Terra’s native token UST lost its $1 peg and dropped down to 35 cents. Investors lost tens of billions of dollars. The devastating experience left the market shaken. Big crypto firms started blowing up. Leading crypto hedge fund, Three Arrows Capital went bankrupt. Then came the news of Celsius Network halting its withdrawals leading to more panic. Acting on which investors started selling their assets leading to the market down again.
However, it seems like the market is recovering. The top cryptocurrency Bitcoin surged on Monday reaching its month-highest, $22500. At the time of writing, it was trading at $21,696.27, down 2.29% in the past 24 hours. Bitcoin is a major entity in the crypto market having the power of influencing it. As per the latest reports of CNBC, Huobi Co-Founder has predicted that Bitcoin won’t experience a bull run until late 2024 or the beginning of 2025. The executive highlighted the fact that the next halving will take place in 2024. After the last two halving events, Bitcoin peaked. But, after that, it tumbled terribly. The co-founder said, “if the circle continues then we are at an early stage of bear market.”
Meanwhile, the top altcoin has seen a whopping 40.06% rise in its value in the past 7 days. At the time of writing, Ethereum was trading at $1,512.69 experiencing a 3.96% rise in its value. As of 16th July, Ethereum even surpassed Bitcoin in terms of the trading volume. Ethereum’s highly anticipated upgrade ‘The Merge’ could bring a slight change in the current dynamics. The Merge will mark the transition of blockchain to Proof-of consensus mechanism protocol. A move to reduce its carbon footprint. Hence, we could witness the second largest cryptocurrency shine brighter.
Moreover, rise in the value of other altcoins also can play a role in increasing hype around crypto assets. Popular coins such as Dogecoin and XRP too have experienced an increase in their values.
Strict government regulations are among the major factors to push this turbulence. They have often surpassed the hype around cryptocurrencies. Market analyst at Hargreaves Lansdown, Susannah Streeter has issued a warning saying that other countries could follow the steps of crypto assets and crack down on crypto assets. There are rising concerns around the extensive energy consumption by mining. Sweden’s energy minister recently said the country needs energy for other useful things than Bitcoin. But things could also play out in another way and proper regulation can end up attracting more investors to the crypto sector.
In short, no one knows exactly what’s going to happen. If you are an investor or starting your journey, know that highs and lows are all part of it and are always going to be. Never invest what you can’t afford to lose.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/07/19/will-the-crypto-market-revive/