Crypto Winter Is Thawing With Bitcoin And Ethereum Rebound Signal
It’s been a rough few weeks for cryptocurrencies, but things are finally looking up! Cryptocurrencies that have fallen off their highs over the past three weeks appear to be on an upward trajectory again.
Crypto winter is thawing as crypto markets are showing some signs of life. For example, Bitcoin, which fell 52% from its November highs to a low of around $33,000, has gained 15% in the past seven days, and Ethereum, which dropped 55% from its all-time high, has rebounded 13%.
Related Reading | Bitcoin and Ethereum rebound signals ‘crypto winter’ thaw
5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!January was a tough month for crypto investors. Still, Bank of America’s global strategist Alkesh Shah says he saw increased interest from people who want to invest or trade cryptocurrencies. He expects prices will rise throughout 2022 and into 2023 as more regulatory clarity emerges about digital assets like Bitcoin.
Bitcoin price is steady at around $44,000. Source: BTC/USD on Tradingview.comWhen it comes to risky assets, like equities and real estate Shah says that their prices can fluctuate wildly. But with crypto, there is one additional factor: the Federal Reserve’s announcement about possible rate rises in March could affect its value too.
According to Shah statement;
Get 110 USDT Futures Bonus for FREE!The market as a whole, and risk assets broadly, really weren’t expecting how many rate hikes are now being talked about.
Experts Predictions On Rate Hikes In 2022
The economy grows with each passing year, and inflation trends remain stable. This has led some experts to predict even more rate hikes in 2022. For example, Goldman Sachs’ forecast of four per season during the year 2022; however, one prediction stands out: Shah’s own bank forecasts seven increases in 2022.
Related Reading | Seven hikes? Fast-rising wages could cause the Fed to raise interest rates even higher this year
The current decline in crypto prices is likely to continue for the next three months, but after that, it’s unlikely unless there are some significant changes.
A recent study done by Shah suggests banks may hike interest rates which would cause even more problems with traders who rely on volatile assets like cryptocurrencies as their sole investment vehicle.
Crypto markets are adjusting to a new reality where risks no longer reap rewards. According to Shah, prices will again start climbing once the market will adjust to the new reality.
During the interview, Shah added:
Then, this group especially (crypto assets), can start to move up more based on the fundamentals of growth and adoption and all of the new applications being built on this ecosystem.
With recent developments in the blockchain space, more investors are beginning to take notice of Ethereum and its various applications. There’s not only one Ether but three different ones worth noting: Binance Coin (BNB) Avalanche (AVA). Each has its unique function that entrepreneurs can use to build on top of these networks or anyone looking into what they do – from security purposes all way down to simplicity.
Additionally, Shah said:
Investors just can’t ignore the sector anymore; It’s gotten too big to ignore.
Featured image from Pixabay, chart from Tradingview.com