The world’s two most popular cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), are still trading in the red below $23,000 and $1,600, respectively. Before a crucial US economic week, traders are wary to put in significant bids. Nonfarm payroll figures and words by US Federal Reserve Chair Jerome Powell will be significant for the market this week.
If the bears can drive Bitcoin below $22,800, the next support level is $21,480. Ethereum, the second-largest cryptocurrency, has likewise witnessed little trading activity around $1,500, signaling buyer and seller hesitancy.
For weeks, prices have fallen throughout the bitcoin market. Bitcoin’s price fell due to unfavorable market sentiment. This market environment may affect Bitcoin supply. If market confidence wanes, Bitcoin holders may sell, boosting supply and lowering prices.
The recent Bitcoin and Ether price drop offers optimism. The gloomy trend may cease if investors see the Silvergate ban as a mere setback. Bitcoin and Ether have large market capitalizations and are interrelated. Hence, if one cryptocurrency succeeds, the other may too.
Large financial organizations’ interest in Bitcoin and Ether may also be boosting their prices. Several large financial institutions have indicated interest in investing in Bitcoin or providing Bitcoin-related services in recent months. Bitcoin and Ether may climb due to institutional demand.
Bitcoin and ether prices have fallen due to government crackdowns. Governments throughout the globe are still trying to regulate cryptocurrencies. Bitcoin and Ether demand is falling due to government crackdowns.This may enhance investor and trader worries, volatility, and legal risk.
Cryptocurrencies like Bitcoin and Ether may lose value if governments and regulatory bodies limit or ban their use or trade. Due to governmental moves, investors may liquidate their holdings and lose faith in cryptocurrencies’ future. Cryptocurrency prices may fall.
In conclusion, investors should actively follow governmental crackdowns on cryptocurrencies as they might drastically impact Bitcoin and Ether valuations.
