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It was a bad week for the crypto market. For investors, the big question is how high will crypto prices go?
After the prices of bitcoin, ethereum and other cryptocurrencies saw steep declines this week, several experts say it could get even worse amid a broader sell-off of risky assets by Investors. Bitcoin price has fallen over 30% in the past week to just under $21,000, and Ethereum has followed a similar trend. The second-largest crypto dropped nearly $1,000 on Thursday.
The stock market rallied on Wednesday afternoon after the Federal Reserve raised interest rates by 75 basis points, the biggest increase since 1994. But the crypto market did not follow, which could be “a worrying sign for some investors,” according to Edward Moya, senior market analyst at OANDA.
“Bitcoin was unable to muster a rally despite a broad rally on Wall Street following the Federal Open Market Committee (FOMC) decision. If a big rally on Wall Street can’t excite crypto traders, bitcoin could be in trouble,” Moya says. “The $20,000 level is holding, but it looks like no one wants to get back into the crypto trade.”
Many experts are warning that this could be the start of a “crypto winter,” an extended period where prices fall and stay low, as they did between early 2018 and mid-2020. If bitcoin falls below $20,000, several experts predict that it could go much lower.
After falling more than 30% over the past week, investors are wondering where the bottom is for bitcoin as well as other digital assets.
How far will Bitcoin and Ethereum go?
Bitcoin first slipped below $30,000 last week, steadily declining to $25,000 on Sunday before dropping substantially to $21,000 on Monday. The biggest crypto slipped further to $20,000 on Wednesday and continued to hover near that range on Thursday. Ethereum reacted similarly, dropping as much as 30% over the past week to hit a new 18-month low of $1,000.
As the two most well-known cryptocurrencies in the market continue to fall, you might be wondering how much bitcoin and ethereum could drop and whether you should buy the dip. While it’s impossible to say for sure, many crypto experts have an idea of where bitcoin and ethereum could bottom based on technical charts and historical data. Here’s how bitcoin and ethereum prices could drop in the coming weeks or months, according to these three experts:
Point of view: Entrepreneur and author of “Cryptocurrencies for Dummies”
Lower projection: Bitcoin could go down to $11,000
Why: The crypto market is in the midst of a bearish sentiment cycle, with investors largely retreating from risky assets. Several factors are currently driving negative sentiment in the stock and crypto markets, including inflation, an unstable stock market, rising interest rates, and recession fears. As a result, bitcoin has fallen nearly 70% from its all-time high of $68,000, dropping below several key technical levels over the past few weeks. Crypto prices could continue to fall if the fragile macroenvironment does not improve in the short term.
Point of view: Expert in cryptography and educator
Lower projection: Ethereum could fall to $750
Why: Ethereum’s price is now almost equal to its price at the start of 2021. Typically, in bear markets, ethereum and bitcoin can drop up to 85%, says O. Ethereum hit an all-time high in November 2021 at around $4,800. , so an 85% correction would lead to around $750. However, it will not be a direct hit. According to O’s technical analysis, there are several levels of resistance support at $1,700 and $1,885, so we’ll likely see a volatile reversal to the upside before Ethereum fully bottoms out.
Point of view: Venture capitalist and founder of the Delta Blockchain Fund
Lower projection: Bitcoin could fall to $14,000 and Ethereum could fall to $500
Why: Crypto winter has arrived and we are unlikely to see a significant rally in the next 12-18 months. Recession fears are pushing investors to liquidate risky assets, and the collapse of Luna and TerraUSD last month and the suspension of withdrawals by lender Celsius this week have further eroded confidence in the space. If the broader market sell-off deepens, Gupta expects there to be more meltdowns in the crypto space. This, in turn, could further erode investor confidence in the crypto market and prices could fall further.
This Week’s Crypto Crash: Should You Buy the Dip?
There is never a “perfect” time to start investing, as it is impossible to time the market. But experts say now could be a good time to enter the market when prices are low – after assessing your risk tolerance (crypto is highly speculative) and covering other financial priorities, like saving in case of a downturn. emergency and invest in a more traditional pension fund. Potential investors looking to buy into this week’s decline should understand that swings are normal and be prepared for this type of volatility in the future.
Even if you invest now, with relatively low prices, be prepared for them to fall even further. That’s why it’s important to put only what you’re comfortable losing. Experts generally recommend allocating less than 5% of your portfolio to crypto investments.
If you are considering buying the plunge, you may be wondering which cryptocurrencies to invest in. Although ethereum and bitcoin’s potential growth is highly speculative, they are still among the best cryptos you can invest in right now, according to NextAdvisor Score’s Investability and experts we’ve spoken to over the past year. Bitcoin and Ethereum are the two largest cryptocurrencies by market capitalization and trading volume, making them good options if you are just starting a crypto investing journey.
Bitcoin has the highest score of any cryptocurrency, with Ethereum just behind. Here’s how our score stands out for 10 cryptocurrencies that consistently rank among the top by market capitalization, excluding stablecoins, for reference:
|PIECE OF MONEY||NEXTADVISOR INVESTABILITY SCORE|
|Binance Coin (BNB)||50/100|
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How High Will Bitcoin And Ethereum Prices Go? 3 Experts Give Us The Numbers
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