After losing value all day yesterday and for the majority of this week, the cryptocurrency markets are still showing little change on Friday. With a gain of 1.94% over the previous day, the market capitalization of all cryptocurrencies is now $920 billion. Ethereum has risen back above the $1,300 support level, and Bitcoin is currently trading at $19,000. Let’s examine recent news that is important to prices today.
Key Notes:
- As Bitcoin and Ethereum prices continue to move sideways on Friday, the cryptocurrency market is mostly unchanged.
- Some analysts claim that the bear market is coming to an end and might only endure another two to three months.
- Many projects are focusing on staying innovative and getting ready for the upcoming bull run by taking advantage of the opportunity presented by reduced volatility.
- Environmentally friendly actions, like the SBC protocol for Bitcoin and the merger of Ethereum, appear to be the theme for crypto assets.
Bitcoin News Update
The $19k support level is still being held by Bitcoin, indicating extraordinarily strong resilience to volatility despite the drop in trading volume and general bearish mood. According to a Cointelegraph report, Bitcoin’s bear market will only persist for about two to three months at most, after which recovery efforts are likely to start.
Although several on-chain data suggest that Bitcoin may have bottomed out, the bottom cannot be called until we see many weeks of bullish momentum.
While a bear market results in losses for investors, projects benefit from the slump since it gives them time and breathing room to innovate and get ready for the bull market. The development of a Bitcoin protocol that benefits the environment is the goal of some projects. When it comes to transforming blockchain and cryptocurrency assets into environmentally friendly technology, Ethereum’s merger is the perfect positive move.
Ethereum Market Reaction Before Weekend
Additionally, according to a Coindesk report, Ethereum is becoming a deflationary asset, which suggests that over the long term (months to years), we might witness significant price growth for Eth in comparison to other crypto assets.
While Ethereum has lagged behind BTC over the last few weeks, ETH outpaced BTC today in terms of price movement. The market’s most valuable cryptocurrency, Ethereum, may yet surpass Bitcoin in market worth next year.
If Ethereum’s price doubled to $2,600 from its present $160 billion market value, it would be very close to Bitcoin’s $370 billion market cap. Although doubtful, such a spike in Ethereum’s price isn’t completely improbable.
The trading volume for cryptocurrencies today is essentially unchanged, with Bitcoin’s volume falling by 2% and Ethereum’s volume rising by 8%. At $923 billion, the market capitalization of cryptocurrencies is still below the $1 trillion barrier, indicating a bearish outlook.
Even though the absence of bullish price action may appear to be a bearish indicator, it’s crucial to remember that cryptocurrency prices are also showing significantly less volatility than they were earlier this year. A decrease in volatility suggests that the market is stabilizing and may be bottoming out.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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