The cryptocurrency market is booming. Bitcoin’s price (BTC) has surged 14.5 percent in the last week, slightly beyond its current value of $ 43,000, according to CoinMarketCap. Bitcoin declined roughly 3% in a day after reaching a high of $ 45,500 on Thursday, but well above the year’s low of $33,500 on January 24th 2022.
However, according to a recent analysis by asset management Blockforce Capital, the average price of Bitcoin purchased by investors over the last five months is $ 47,000, which is still insufficient for some. There’s a chance it’ll happen.
“On average, investors who buy during that period may lose money and are unlikely to buy any more until the break-even point,” says Brett Munster of Blockforce Capital.
The “important threshold” for Bitcoin values, according to Blockforce, is $ 47,000. This is the 200-day moving average of the market’s benchmark cryptocurrencies.
“This threshold can create resistance, as these recent buyers may try to recover and sell their investment,” Münster wrote. “But if we break through and exceed this $ 47,000 threshold, modern investors can be confident that they will re-enter the market and start buying again.”
Bitcoin is currently down 37% from it’s all-time high of $ 69,000 set in November 2021, according to Blockforce, and “it’s too early to properly pronounce $ 33,000 to be the worst.. .. The good side is now far more asymmetric than the negative side.”
“That doesn’t mean Bitcoin couldn’t fall again, but the data now seems to suggest that the upside is more likely than the downside,” Münster added.
Ethereum
Meanwhile, Ethereum (ETH) is the second most valuable cryptocurrency in terms of market capitalization, trailing only Bitcoin. It is now selling at slightly under $ 3,100 per CoinMarketCap, down approximately 5% per day.
However, in the last seven days, the coin has gained nearly 9% in value.
With the rise of agriculture, Ethereum is under increased competition. Cardano (ADA), Polka dot (DOT), and Avalanche (AVAX) are examples of proof-of-stake blockchains; yet, some industry experts are optimistic about the coin’s long-term prospects.
NDAX One of them is Bilal Hammoud, the CEO of Canada’s Digital Asset Exchange. The price of ETH It will reach $ 10,000 by the end of 2022, as the coin’s value rises due to its scarcity and the impending shift to Proof of Stake (PoS).
“The latest upgrade of Ethereum has become a deflationary asset. The Proof of Stakes will further lock ETH for staking rewards. This is, in theory, an increase in demand while supply decreases. It should affect the price that rises as supply declines,” according to the personal finance comparison site Finder.