As the Federal Reserve’s more conservative approach puts stress on markets, bitcoin, Ethereum, as well as other prominent cryptocurrencies have swung dramatically in recent weeks, with a doge breakthrough surprising trader.
Throughout April, the bitcoin price swung around $40,000 per bitcoin, having a hard time finding stable footing above the closely watched figure. The price of Ethereum is still hovering around $3,000 per ether, aside from the fact that the long-awaited Ethereum update was once again postponed this week.
Furthermore, when crypto exchange experts warn of impending crypto chaos and characterizing the market as “at a critical point.”
Nexo CEO Gives Warning For Crypto Value As Federal Government Tightens Measures
Nexo’s Antoni Trenchev told CNBC this week that the bitcoin price might hit $100,000 in 12 months, and that a stock market collapse would likely bring the Federal Government “back to easing in no time.”
Trenchev predicted a bitcoin price of $50,000 before the close of the year in January 2020, but he was only two months off. “Everybody was laughing me out,” he added. In December 2020, the bitcoin price soared past its previous all-time high of $20,000, achieving $50,000 through February 2021.
But besides his optimistic long-term spot price projection, Trenchev is concerned that the price of bitcoin would tumble in the next months as the Federal Government continues to reduce its enormous Covid-era economic stimulus and carries on its rise in interest rates.
Trenchev’s forecast is echoed by several cryptocurrency market observers who believe the current bull market is coming to an end.
Yuya Hasegawa is a crypto market analyst at Japanese bitcoin and crypto exchange Bitbank, and he remarked that even as many voices in the Federal Government have given support for even more aggressive action in the face of financial instability, “market’s inflation expectations” show no signs of stopping and fluctuations are still the ongoing trend projected to continue. Hasegawa also pointed out that BTC would “continue to vary” in value inside a reasonably predictable range as a result of the fluctuations caused by the persistent inflation as well as the government’s “tighter monetary policy.”
Keeping Bitcoin Support Levels Is Critical
The US CPI soared nearly 8.5 percent through March, the biggest level in forty years, according to figures released this week, with the White House stressing that inflation has been “extraordinarily elevated.”
As the Federal Government struggles to cope against inflation, bitcoin and cryptocurrency traders are keeping a watch on critical support lines to get a better sense of where the market is going.
“Bitcoin is hovering around the support level, which goes through the pullbacks of the last three months according to Alex Kuptsikevich of FxPro. He added that going by the previous dips in the “$38,000 per bitcoin area”, an official call to cease support levels will be “a failure.” On the other hand, he claimed that the potential to construct an offensive reversal from current levels will emphasize the significance of this modest uptrend line.