What to expect from Bitcoin and Ethereum for next week?
The cryptocurrency market seems to be recovering, but … Is that always the case? We tell you in our analysis of the price of Bitcoin and Ethereum.
More than two weeks have passed since the collapse of cryptocurrency prices. Today, the market seems optimistic, with the price of crypto assets rising, but … Will it continue that way for a long time? Here at CriptoTendencia we tell you what to expect in the Bitcoin and Ethereum market.
A little context: the collapse
On September 24, chaos reigned in the cryptoactive market. In a matter of hours the price of Bitcoin fell from $ 9718 per BTC to 8,364, continuing the decline the following days. This led even to fear a fall below $ 7,000.
The fall in the price was motivated by the expiration of the future Bitcoin contracts of the Chicago Mercantile Exchange (CME). More than half of these derivatives had an execution date on Friday, September 27.
This generated an incentive for speculation in large market players. Which, began to offer large amounts of Bitcoins. Which led to an excess of supply, which did not correspond to natural demand, collapsing prices and causing the BTC to fall apart.
And as Bitcoin is the main cryptocurrency in the market, and a reference to the value of the crypto world, its collapse affected the entire system. Thus, we saw how coins like Ethereum were going through a very good time, they collapsed next to BTC.
The price of Bitcoin
However, this fall was not going to last long. And, once CME contracts expired, the incentive to speculation in the crypto market was lost. Allowing the laws of supply and demand to decide again the value of Bitcoin and the other cryptocurrencies.
All this is positive for the BTC. Well, as the analyst of the house has commented, the prospects of Bitcoin by the end of this year and the beginning of next seem quite solid. And in fact, the 800% increase in Bakkt’s future Bitcoin contracts seems to be a confirmation of this analysis.
In spite of which, there is an element that can probably delay the recovery of Bitcoin in the short term. Since, Bitcoin is a valuable asset, that is, an asset that investors are looking for in times of economic and political uncertainty.
Therefore, the announcement of a possible partial understanding between China and the United States could diminish the interest of investors in this market. Which, also allows us to explain the variations in the price of the BTC, which since yesterday, seems to have stopped its progress.
For its part, Ethereum seems to be the big loser of the Bitcoin collapse. Well, although the cryptocurrency market is slowly recovering its price. In the case of ETH, this recovery seems to be tied to Bitcoin, and have nothing to do with its previous boom.
And, during the price increase before the collapse of September 24, several commentators came to think that Ethereum could have become independent of Bitcoin. Not being tied its price from then on, to the movements in the BTC market.
However, movements in the ETH market in recent days seem to be under the influence of Bitcoin once again. Stopping its rise right at the moment that Bitcoin did it.
Staying like this, within the price range considered normal before. That is, around 180 dollars. A trend that does not seem to be broken for now, if there is no change in the conditions of the crypto world.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.