The value of Ethereum and Bitcoin is plummeting. Here’s Why One Analyst Thinks Bitcoin Will Fall Even Lower
Bitcoin (BTC) has dropped more than 50% from its all-time high, reaching its lowest point in 2022.
According to CoinMarketCap’s price index, the cryptocurrency fell below $33,000 for the first time since July 2021 on Monday morning, marking the latest series of significant price drops since its November peak.
The price decline comes amid a broader crypto market crash that has seen the worth of cryptocurrencies plummet by roughly $300 billion in the last four days.
Ethereum (ETH) followed bitcoin’s downfall, losing 13% of its value since last week, while other significant cryptocurrencies did much worse. Solana (SOL) has been down more than 16% in the previous week, while Terra (LUNA) has dropped more than 25%. “For crypto asset investors, today’s question is when the decline will halt,” said Simon Peters, a crypto market analyst at the online trading platform eToro.
“The market is caught up in the greater adversity of financial markets, which are trying to determine where comfortable levels are in the aftermath of interest rate hikes intended to cool skyrocketing inflation across the Western world.”
The Crypto Fear and Greed Index, which examines exchange data and online patterns to gauge general market sentiment, is at ’11,’ the lowest level since last year.
Bitcoin’s demise represents one of the most significant price drops in recent years, with analysts warning that it might become part of a longer-term bear market if it does not bottom out soon. Bitcoin’s demise represents one of the most significant price drops in recent years, with analysts warning that it might become part of a longer-term bear market if it does not bottom out soon.
Cryptocurrencies are volatile, with unpredictable price changes following advances and record highs in 2021.
Bitcoin is currently worth half of what it was six months ago when it peaked at £51,000 per coin on November 10, 2022.
- Bitcoin (BTC) -4.84% (£26,543.67)
- Ethereum (ETH) -4.32% (£1,951.72)
- Tether (USDT) +0.12% (£0.81)
- BNB (BNB) -7.98% (£265.83)
- XRP (XRP) -6.24% (£0.43)
- Solana (SOL) -8.04% (£57.85)
- Cardano (ADA) -10.04% (£0.54)
- Terra (LUNA) -7.55% (£48.06)
- Dogecoin (DOGE) -6.79% (£0.0947)
- Avalanche (AVAX) -6.24% (£39.44)
- Polkadot (DOT) -11.61% (£9.59)
- SHIBA INU (SHIB) -11.18% (£0.000014)
Bitcoin, Ethereum, and other cryptocurrencies prices
Bitcoin and Ethereum have both dropped more than 10% in the last 24 hours, with bitcoin breaking beyond $30,000 for the first time since July 2021 and Ethereum staying around $2,200. Bitcoin, according to one expert, might fall considerably farther.
In a recent TikTok video, crypto specialist Wendy O thinks bitcoin could “possibly receive a mini-bounce near $35,000, but unless we break the trend line at approximately $37,000, I’m predicting for $29,000 in the coming weeks or week.”
Due to persistent macroeconomic uncertainty, Bitcoin and other cryptocurrencies have had a rocky start to the week. The most famous cryptocurrency, Bitcoin, fell below $36,000 on Saturday and continued to fall throughout the weekend, reaching its lowest value in almost a year on Monday.
The cryptocurrency markets have been closely following the stock market, which has recently red. Stocks sank dramatically on Monday as the market selloff continued following the Federal Reserve’s announcement last week of the most significant interest rate hike in over 20 years.
“The broader market has recognized the great link between Bitcoin values and general equity markets,” says Armando Aguilar of Len, a digital asset savings and credit platform. “With 0.88 per cent and 0.91 per cent, respectively, the S&P 500 and the NASDAQ have the highest correlations to Bitcoin. A one-to-one correlation indicates that they move in the same direction.”
Like the stock market, the crypto market has been under pressure for weeks as investors deal with rising inflation, a whirlwind of economic events centred on Russia’s invasion of Ukraine, and the Federal Reserve’s tightening of monetary policy.
The Value of Bitcoin (May 9)
The most popular cryptocurrency began Monday on a sour note, trading around $30,900, down nearly 19 per cent in the previous week. Bitcoin hasn’t been this low since July 2021.
Bitcoin began to decline towards the conclusion of last week and continued to do so over the weekend, trading in the $33,000 to $37,000 region. Bitcoin’s massive decline on Monday is just the latest warning for investors that digital assets carry additional risk and volatility, especially in times of economic and political uncertainty like we’re experiencing now.
“As the never-ending selloff on Wall Street continues, Bitcoin is breaking below some critical technical levels. In a market analysis, Edward Moya, senior market analyst at foreign-exchange brokerage Oanda, stated, “The institutional investor is paying close attention to bitcoin because many who bought in last year are now losing money on their investment.” “If the USD 30,000 level is broken, it could result in a flash crash if multiple whales unload.”
But Wendy O, who projected in April that Bitcoin would hit $33,000 before July based on her technical price charts, isn’t surprised by the latest low.
‘I am getting 2021 April-May vibes, which suggests probable bearish until July,’ I tweeted on April 17, 2022. Price action, failure to properly breakout, and NFTs going off are all things I’m watching.’ O declares.
DESPITE THE RECENT LOSSES Wendy O is still bullish on bitcoin in the long run. Bitcoin’s all-time high remains in the early days of January when it nearly reached $48,000. Bitcoin also fell below $34,000 in the same month. Since its all-time high of $68,000 on November 10, Bitcoin has lost more than half its value.
Today’s Ethereum Price (May 9)
The price of Ethereum has been drastically decreasing in recent days, with the coin currently trading at $2,300 on Monday. Ethereum has dropped 18% in the last week, after a significant drop in Bitcoin and the stock market.
Ethereum, like all other cryptocurrencies, tends to follow Bitcoin’s path. If Bitcoin falls in value, Ethereum is likely to follow suit. However, there has been dealing with its significant software upgrade buildup.
Ethereum will transition from proof-of-work (PoW) to proof-of-stake (PoS) in the coming months, popularly known as “The Merge.” It’s significant because it will alter how Ethereum transactions are processed, making it more efficient and long-term.
Tim Beiko, an Ethereum engineer, recently disclosed that “The Merge” will not occur in June as previously predicted but rather take place before the end of 2022. On April 11, Beiko tweeted, “No firm date yet, but we’re definitely in the final chapter of PoW on Ethereum.”
This, combined with various other macroeconomic reasons, has resulted in a shaky start to the year for Ethereum, which fell below $2,200 in January, the lowest price since July 2021. Ethereum is closing in on its January low as of Monday.
What Cryptocurrency Investors Should Know
Cryptocurrency values are incredibly volatile. That means they’re just as likely to collapse as they are to rise, and experts warn crypto investors will have to deal with this in the future.
The recent losses in bitcoin and Ethereum shouldn’t worry you as long as you’re only investing what you’re willing to lose and have a long-term investment strategy.
Most financial gurus advise investing no more than 5% of your overall wealth in cryptocurrency. Prioritize other aspects of your finances before investing in bitcoin, such as emergency savings, putting money into a retirement account, or paying off high-interest debt.
It’s no coincidence that the crypto market has been behaving more and more like the stock market recently. According to experts, increased institutional use of cryptocurrency has made its market increasingly interwoven with the stock market, significantly impacted by the war in Ukraine, rising inflation, and the Federal Reserve’s tightening monetary policies. These macroeconomic variables have caused some noise and increased volatility in the crypto and stock markets in the short term, but this is normal in times of uncertainty.
Top Cryptocurrency Exchange Rates
Several other top 10 crypto assets have seen their prices collapse in recent days. Consider the following price changes over the last 24 hours:
Ethereum (ETH): Ethereum’s price has plummeted 3.41 percent to $2450 in the last 24 hours. In the last seven days, the price of ETH has dropped 14.15 percent. By market capitalization, it is currently the second most valuable crypto asset.
BNB (Binance): Binance currency’s price has declined 3.13 percent to $347 in the previous 24 hours. In the preceding seven days, the price of BNB has dropped 11.05 percent. It is now the fourth largest crypto asset by market capitalization.
XRP: In the previous 24 hours, the XRP coin price has dropped by 0.55 per cent to $0.5656. In the last seven days, the price of XRP has dropped 9.40%. By market capitalization, it is currently the 6th most valuable crypto asset.
The price of Solana (SOL) has declined 13.41% to $74.91 in the last 24 hours. SOL’s price has dropped 16.73 percent in the last week. It is now the seventh-largest cryptocurrency by market capitalization.
Cardano (ADA): The price of the Cardano cryptocurrency has declined by 4.21 percent in the previous 24 hours to $0.7069. In the last week, the price of ADA has dropped by 10.53 percent. It is now the eighth-largest cryptocurrency by market capitalization.
Terra (LUNA): In the last 24 hours, the price of the Terra coin has dropped 3.61 per cent to $62.69. In the last week, the price of LUNA has dropped by 24.59 percent. It is now the eighth-largest cryptocurrency by market capitalization.
The price of the popular meme coin Dogecoin (DOGE) has dropped 2.71 per cent in the previous 24 hours, while the cost of Shiba Inu (SHIB) has fallen 4.97 per cent in the last day. DOGE is now ranked 12th in market capitalization, while SHIB is ranked 15th. DOGE was trading at $0.1221 at this report, while SHIB was trading at $0.00001771.
edited and proofread by nikita sharma
