The Bitcoin market is showing signs of growth. While Bitcoin traded sideways throughout the U.S. business day, the number of unconfirmed transactions has decreased to just below 400,000 from nearly 500,000 over the weekend. In addition, fees for sending transactions have settled to just over $5 from over $20 at the peak of this crisis.
Bitcoin is currently trading at $27,741, up 0.3%, according to CoinDesk market data, while ether is trading at $1,853, up 0.2%. On-chain data shows that the congestion on the Bitcoin blockchain has diminished, leading to a potential return to price growth.
The question on many people’s minds is what will cause the next big move in prices? According to eToro investment analyst Callie Cox, inflation is the chief concern of everyone from the Fed to crypto traders. Cox argues that Americans want inflation to decrease while maintaining job security, and the Fed is trying to balance these, but it’s a process that inevitably involves some pain.
“Powell really leaned into his megaphone and provided some very flexible language on the future of policy,” Cox said on CoinDesk TV. “They keep dropping hints and statements, where they basically change the language around if future policy moves are needed. This could be a hint that the Fed is becoming more flexible.”
Meanwhile, despite Bitcoin’s congestion, it remains a defensive asset. Cox points out that it has surprisingly outperformed the S&P 500 on most CPI and Fed days. “In the wake of massive sell-offs, Bitcoin, while still risky, seems to be benefiting from both its traditional role and its emerging role as a value store during lower rates,” she said.
Aside from Bitcoin, what is Cox watching at the moment? Ethereum. She views ether as a riskier investment but recognizes its economic value and the number of projects being developed on the Ethereum blockchain. “Ethereum is one of those blockchains that is proving its value at the moment, and I think investors are realizing that,” she said.
With the increasing attention to cryptocurrencies, it’s important to consider the potential risks and rewards of investing. While Bitcoin remains a defensive asset, Ethereum’s economic value and a growing number of projects make it an attractive option for investors. As the market continues to evolve, it’s essential to stay informed and make informed decisions based on reliable data and analysis.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.