In recent days, the bitcoin price has had several upward movements. BTC reached $25,000 over the past week. This Monday, the price of Bitcoin closed at $24,840, but today, Wednesday, it has fallen to levels of 23,700. This is how they explained it from CryptoMarket, sharing an analysis of what is happening with the price of BTC and the price of ETH.
What are the prospects?
According to CryptoMarket, the following must be taken into account:
- The price of bitcoin today continues without exceeding 25 thousand dollars. Cryptocurrencies have generated gains, despite negative market conditions with interest rates still rising.
- The bitcoin price reacted to the unexpected increase in the Producer Price Index (PPI) in the United States. Despite this setback, Bitcoin surged 73% from its lowest point during January. The PPI news could have caused investors apprehension due to inflation and monetary policies.
- Regarding the price of ETH, we know that it is the second most important blockchain and has a high correlation with bitcoin. Ethereum has been a strong performer over the past seven days, posting a 10% rally against the US dollar and hitting new highs in the $1,740 area.
In the upper graph we can see the variation of Bitcoin (BTC) and Ethereum (ETH) so far in 2023. We observe that despite the volatility, the bitcoin price has had a positive cumulative variation.
“The increase in the price of bitcoin has been partly attributed to increased institutional demand. Big companies like Tesla, MicroStrategy, and Square have invested billions of dollars in BTC, increasing its appeal as a form of safe investment. The adoption of Bitcoin as a means of payment has also grown, thanks to companies such as PayPal and Visa allowing their users to buy, sell and pay with Bitcoin”, they explained.
They then added: “The price of Ethereum has had significant moves in 2023. In January, Ethereum started the year at around $1,200, but by February it rose to over $1,600. Like Bitcoin, the Ethereum price also experienced a major low in mid-February, falling to around $1,500 before recovering.”
Unlike Bitcoin, Ethereum has a different use case as it is used in the creation of decentralized applications (dApps) and smart contracts.
Furthermore, Ethereum has been undergoing a large number of upgrades and improvements to its infrastructure, which has increased its appeal to developers and investors.
“Recently, the crypto market led by Bitcoin and Ethereum shows stability in its prices and also generates positive effects for other cryptocurrencies. At CryptoMarket we believe that the market will remain in these ranges, also depending on the new macroeconomic announcements”, explained Rafael Meruane, co-founder of the platform.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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