After dipping to the $20k and $1,500 ranges last week, Bitcoin and Ethereum saw additional bearish momentum throughout the weekend. The good news is that crypto markets are back to the previous week’s level this Monday as BTC and ETH find new support. The trading volume for both Bitcoin and Ethereum is up significantly, with an increase of over 20% in the past 24 hours. Unfortunately, the global crypto market cap is yet to surpass $1 trillion, meaning that despite the recent price hike, the bears are still in control of the market. Let’s look at any relevant Bitcoin and Ethereum news that could influence this week’s prices.
Key Points:
The most crucial news likely to affect Bitcoin and other digital currencies prices is the Chairman of the Federal Reserve, Jerome Powell’s comments at the Jackson Hole conference in Wyoming.
For those unfamiliar, Jackson Hole is an annual gathering of central bankers where various influential groups discuss upcoming monetary action and macroeconomic ideas. This year’s conference was held between August 25th-27th, and Jerome Powell warned that there would be some pain ahead as the Fed is planning on raising interest rates to help curb inflation and support the economy.
Interest rates rise and create short-term negative pressure on the markets as traders consolidate their investments and pull cash out. In addition, rising interest rates cause several other industries, like Real Estate, to suffer as buyers’ purchasing power decreases since the size of a mortgage loan a buyer can receive and afford also decreases.
Despite the Fed’s upcoming monetary action, Bitcoin is likely to remain in the $20k range, especially given that cryptocurrency markets are inherently immune to inflation, and the price drops result from traders’ speculation.
After dropping to the mid $1,400s this weekend, ETHUSD saw a 7% price hike this Monday, bringing it back to the $1,500 range. As the network merge date approaches in several weeks, traders are buying ETH in anticipation of bullish momentum.
While some speculators suggest that Ethereum’s merge trade is already priced in, others believe that Ethereum price will see most of its price hike post-merge. After all, until the merge is complete, we can’t be sure that Ethereum’s network won’t encounter some roadblocks or issues along the way. While investors remain wary, the increase in trading volume today and the sharp rebound from the $1,400 level suggests that Ethereum’s market is extremely healthy and will likely reach the $2k range in the next several months.
Today’s bullish momentum is a positive sign for Bitcoin and Ethereum markets. While the short-term volatility might make some traders nervous, this remains an excellent opportunity to purchase crypto assets at a low price.
Bitcoin is likely to trade in the $20k range, and Ethereum’s $1,500 level is expected to remain an integral support range for the cryptocurrency. The increase in trading volume suggests that an upcoming market move may be looming this week, as many traders are waiting on the sidelines and are 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.
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