What’s next for Bitcoin, Ethereum, BNB, Solana, Cardano and XRP?

[ad_1]

The combined bitcoin and cryptocurrency market has lost around $ 1 trillion since November in a crypto price crash that caused unrest for traders.

Subscribe now to Forbes CryptoAsset & Blockchain Advisor and discover new NFT and crypto blockbusters ready to earn 1000%

The price of bitcoin has gone from a high of nearly $ 70,000 per bitcoin less than two months ago to a low of just over $ 40,000 today, a decline of around 40%. Meanwhile, other major ethereum cryptocurrencies, Binance’s BNB, solana, cardano, and XRP all lost a similar amount.

ADVERTISING

The crypto market’s decline from $ 3 trillion to $ 2,000 billion, as measured by CoinMarketCap, comes after a period of huge cryptocurrency price growth that has seen the market rise by $ 200 billion only two years ago – and bullish traders are convinced this latest crash is only a temporary setback.

Sign up now for the free CryptoCodex, a daily newsletter for crypto-curious people. Help you understand the world of bitcoin and crypto, every day of the week

MORE FROM FORBESWhy a skeptical Bitcoin and Ethereum billionaire just rocked and made a wild crypto price predictionBy Billy Bambrough

ADVERTISING

The price of bitcoin has slumped from its November highs of nearly $ 70,000, losing almost 40% of its … [+] value and hitting the price of Binance Ethereum, BNB, Solana, Cardano and XRP.

SOPA Images / LightRocket via Getty Images

“While brutal, the most recent dip in the digital asset market was by no means unexpected,” said Mikkel Morch, executive risk management director of crypto hedge fund ARK36, in comments sent via email. “Previously, we warned that market uncertainty and weak technical fundamentals made it very possible to drop to lows of $ 40,000.”

“[Bitcoin has] broke its recent market correlation, missing the rally in stocks in late 2021 / early 2022, ”Nicholas Cawley, strategist at DailyFX said by email. , then a group of late September lows between $ 39,600 and $ 40,700 kicks in. “

ADVERTISING

The latest crypto price crash, wiping billions of dollars from the bitcoin and crypto market within hours, came after it was revealed that the US Federal Reserve could accelerate its planned interest rate hikes in 2022 and start shrinking its huge balance sheet – something that was also weighing on the stock markets.

After the release of the December Fed meeting minutes, hinting at a more decisive move to cut expansionary monetary policy to fight inflation, negative investor sentiment caused bitcoin to drop the key level of $ 46,000, ”Morch said. “Once that support was broken, sell-offs followed within minutes. For a few weeks now, we have clearly been in a downtrend and there are no signs of a decisive reversal in sight.”

The crypto price crash comes about six months after the price of bitcoin was hit hard by a crypto crackdown in China and trust was undermined by Tesla CEO Elon Musk, appearing to be falling. degrade on bitcoin. The price of bitcoin hit a low of $ 29,000 in late July before rebounding and rising above its previous high.

ADVERTISING

There are “striking similarities between the current price development and market movements between mid-May and August giving reason to be cautious in the medium term,” said Morch. “A rebound to around $ 47,000 in the next few days could corroborate this thesis, while further losses would largely invalidate it. In any case, only a clear break above $ 50,000 would signal a major reversal of the trend and investors should keep in mind the inherent volatility of the digital asset market.

CryptoCodex — A Free Daily Newsletter for the Crypto-Curious

MORE FROM FORBES ‘Huge Surprise’-President of El Salvador Released Six Big Bitcoin Predictions Like Ethereum, BNB, Solana, Cardano and XRP Limp Price Until 2022By Billy Bambrough

ADVERTISING

The price of bitcoin has swung sharply over the past 12 months, with its volatility corresponding to smaller … [+] cryptocurrencies ethereum, BNB from Binance, solana, cardano and XRP.

Coinbase

Other bitcoin and cryptocurrency investors are not affected by the recent slowdown, confidently predicting a “robust rebound” in prices.

The Fed caused an “instinctive sell-off on Wall Street and the crypto market, as some traders believe such a move endangers the liquidity that has benefited many asset classes, including bitcoin,” Nigel Green, chief executive of Vere’s financial advisory and asset management group, said in comments sent via email.

“However, I think we will see bitcoin rebound strongly as the dust settles. This will then stimulate others in the crypto market” – like Ethereum, Binance BNB, Solana, Cardano and XRP – “because bitcoin and other digital currencies are widely used. Considered a shield against inflation.

ADVERTISING

Over the past year, Ethereum and its bigger Binance rivals BNB, solana, and cardano have outperformed the price of bitcoin. The price of Ethereum has risen 165% over the past year despite the recent crypto price crash. Solana, now the fifth largest cryptocurrency by value, rose 6,500% in January 2021.

“Bitcoin has not only underperformed the crypto space in recent weeks, with a slew of altcoins… registering massive gains,” said Nicholas Cawley of DailyFX. “Bitcoin’s market dominance is now just under 40% from a level of just under 70% around the same time last year.”

While many bitcoin and crypto investors are convinced that bitcoin and the broader crypto market will rebound, others see the continued extreme volatility in the crypto markets as an issue that must be addressed.

ADVERTISING

“Whatever the merits of the cryptocurrency, such wild swings would prevent it from supplanting traditional currencies anytime soon,” Russ Mold, AJ Bell’s chief investment officer, said via email.

[ad_2]