Emmanuel OchayiAfter a turbulent week characterized by speculative activity before a crucial Federal Reserve meeting and its potential impact on interest rates in the US, the prices of Bitcoin and Ethereum have rebounded.
After a period of collapse, during which Bitcoin fell below $60,000 and Ethereum had a comparable loss, there has been a resurgence.
Join our WhatsApp ChannelDecrypt reports that in the last 24 hours, the price of Bitcoin has increased by 0.5%, to almost $57,700. Ethereum, meanwhile, has increased 2.3% in the last day and is currently trading at slightly less than $3,000.
The cryptocurrency market has already taken a serious hit despite this upsurge. Crypto futures contracts valued at $193 million were liquidated in the last 24 hours alone, bringing the total amount of liquidations this week to $300 million.
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The current state of the market is attributed by economist and cryptocurrency analyst Alex Kruger to the increasing demand for spot Bitcoin ETFs, which started trading in January. He observes, “Very few new retail investors have entered the cryptocurrency space. The majority of those redeploying and moving out of the risk curve are ETF purchasers and former cycle participants.” The recent price swings have been influenced by this change in market participation.
The majority of the decline in cryptocurrency values can be ascribed to investor anxiety over the Federal Open Markets Committee’s interest rate decision.
In a news appearance, Federal Reserve Chair Jerome Powell cast doubt on an impending rate hike despite these worries. During a news appearance in Japan, President Joe Biden also voiced hope about a possible rate cut before the year ends.
It is noteworthy that the important halving weekend last month coincided with the peak price of $65,000 for Bitcoin. Since then, it has slowly decreased, with investors’ lack of interest in the cryptocurrency asset primarily stemming from its inability to profit from the tension in the Middle East.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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