Bitcoin and Ethereum experienced more negative momentum over the weekend after plunging to the $20k and $1,500 levels last week. BTC and ETH are back at their prior week’s levels in cryptocurrency markets as of this Monday. With a rise of over 20% over the previous day, the trading volume for both Bitcoin and Ethereum has increased remarkably.
The bears are still in charge of the market despite the latest price increase because the global crypto market cap has sadly not yet surpassed $1 trillion. Let’s check out some factors to consider for what would be Bitcoin and Ethereum’s next move in the following weeks.
- Bitcoin and Ethereum prices have rebounded from the market downturn that occurred over the weekend.
- Last week, Jerome Powell’s statements at the Jackson Hole conference fueled negative sentiment in the stock and cryptocurrency markets.
- The increase in trading volume indicates that traders are ready to buy in more positions if there is another correction.
- The Ethereum network merger will continue to drive ETHUSD for the next few weeks, especially once the network merging is complete.
Bitcoin Market News Update
The words of Federal Reserve Chairman Jerome Powell at the Jackson Hole conference in Wyoming are anticipated to have the most impact on Bitcoin and other digital currency markets.
Jackson Hole is an annual gathering of central bankers where several key organizations discuss impending monetary action and macroeconomic ideas. This year’s conference was held from August 25th to 27th, and Jerome Powell cautioned that there might be some tough times ahead as the Fed plans to raise interest rates to help limit inflation and strengthen the economy.
Interest rates increase puts short-term downward pressure on markets as traders consolidate their positions and withdraw funds. Furthermore, rising interest rates hurt other businesses, including real estate, because buyers’ purchasing power drops as the size of a mortgage loan they can acquire and afford decreases.
Regardless of the Fed’s future monetary action, Bitcoin will likely remain at the $20k level, especially since cryptocurrency markets are intrinsically resilient to inflation and price dips are caused by traders’ uncertainties and panic.
Ethereum Price Market Update
After falling to the mid $1,400s over the weekend, ETHUSD saw a 7% price increase on Monday, putting it back to $1,500. Traders are buying ETH expecting bullish momentum as the network merge date approaches in a few weeks.
While some speculate that Ethereum’s merging trade is already accounted for, others believe that most of the price increase will occur after the merger. More so, we can’t be certain that Ethereum’s network won’t suffer any roadblocks or glitches until the integration is completed. While investors remain cautious, today’s spike in trading volume and quick rebound from the $1,400 level implies that Ethereum’s market is quite healthy and will undoubtedly reach the $2k zone in the next few months.
Cardano’s Vasil Hard Fork is expected to occur in the same month as Ethereum’s merging, according to Cardano’s Founder, Charles Hoskinson. He also stated on a Twitter live stream that extensive testing is presently underway in preparation for the launch in mid-September. This indicates that more bullish news will be released in September. Furthermore, ETC should be monitored closely as it’s likely to experience a price spike in September. There will be an increase in hash rate while POW miners switch to Ethereum Classic after the merger.
Crypto Market’s Next Move
Today’s bullish momentum is a good indication for the Bitcoin and Ethereum markets. While the short-term volatility may concern some traders, this is still an ideal chance to buy crypto assets at a low price.
Bitcoin is projected to trade in the $20k range, while Ethereum’s $1,500 level is expected to remain a vital support range for the cryptocurrency. The increase in trading volume signals that a market shift is on the horizon this week, as many traders are sitting on the sidelines, ready to buy BTC and ETH if prices drop again.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
Follow us on Twitter @thevrsoldier to stay updated with the latest Metaverse, NFT, AI, Cybersecurity, Supercomputer, and Cryptocurrency news!