Do you think cryptocurrencies will come back now that U.S. inflation is slowing down? On August 11, 2022, Bitcoin (CRYPTO:BTC) increased 7.19% to reach US$24,593.20 and now seems to be staying steady at that price. However, the second-largest cryptocurrency in the world by market value eclipsed the pioneer.
Despite rising inflation, Ethereum (CRYPTO:ETH) increased 13.17% to US$1,900.81. The new proof-of-stake model's successful and concluding testing delighted investors. The launch is scheduled for the following month, and ETH's acceptance might raise it to new heights. Even some market analysts claim it may dethrone Bitcoin as the leader in cryptocurrencies.
Undeveloped Excitement
The euphoria about the price increase of Bitcoin may be overblown, say specialists in the field. The leading cryptocurrency shows some stabilization, but it is still down 46.9% for the year and 63.6% from its record high, which was US$67,566.83 on November 8, 2021.
Market analyst for digital asset broker GlobalBlock Marcus Sotiriou is still doubtful. The Fed is still tightening, and inflation is still high, so we are not yet persuaded that the market will reverse course, he added. But the crypto winter could be drawing to a close for cryptocurrencies.
According to Wendy O, a market analyst, and crypto educator, neither BTC nor ETH has reached their lowest levels in the current cycle. In the final stages of the bear market, a genuine capitulation is still possible. Senior market analyst at Oanda Edward Moya claimed that the death of Bitcoin late last year was caused by inflation. He further stated that if price pressures dramatically eased, BTC might go over the most recent trading range. Bitcoin "treads water," according to Martin Hiesboeck, head of blockchain and cryptocurrency research at Uphold. He notes that investors sell every time the price rises since the macroeconomic picture is still bleak. Heisboeck also pointed out that institutional investors have kept buying bitcoin since it reached a low. It could cause erratic price movement.
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