In this way, it boosted Bitcoin, which managed to exceed $20,000, reaching a maximum since last October 7.
But what is this rally due to?
Investors pumped more than $50bn into the market and Ethereum (ETH), the world’s largest altcoin, is leading this rebound, reaching $1,500 for the first time since The Meltdown.
At its current price, Ethereum shows a difference of 69.8% compared to the annual highs it set at $4,864.06 on November 10, 2021.
The gains in both coins reflect a broader uptrend in the cryptocurrency market as the dollar pulls back. Coinmarketcap data shows that the total market capitalization of cryptocurrencies is less than $30 billion away from reaching the trillion dollar mark.
In setting their prices, markets are factoring in expectations that a sharp economic slowdown in the US will prompt the Federal Reserve to ease its aggressive stance. Although it is still believed that the central bank will raise interest rates by 75 basis points in November, traders are confident that the bank will slow its rate hikes the following month.
The prospect of a less aggressive Fed hurt the dollar, and the greenback has fallen over the past four days. Both the dollar index and futures remain unchanged, hitting a low of more than two weeks at 111.
The weakening of the dollar contributes to the fact that the cryptocurrency markets have surpassed their narrow trading range of the last two months. But, as in previous rallies, it remains to be seen whether the market can sustain its uptrend.
Markets were also buoyed by reports that a number of wealthy Asian investors were buying cryptocurrencies, particularly Bitcoin.
Analysts are not very optimistic
The expectations of market experts collected by Finder are not positive in the remainder of 2022 for the asset. Experts place its price at the end of December, at US$1,377, at levels very similar to its current price in the cryptocurrency markets.
But they also bet on a price, already with a view to the year 2025, which will progress to US $ 5,154 on average in that consensus in 2030, it would more than double in price to $11,727 per asset. These are levels, which were clearly corrected downwards in the consultations carried out with them throughout the year.
And there are very different opinions. For example, Thomas Brand, head of institutions at Coinmotionsee Ethereum at $1,300 by the end of 2022. In fact, he considers that “market conditions are challenging and several factors limit the bullish price action, but in the long term, I see many positive fundamental drivers”, so he would correct from his current levels.
Among the less optimistic we find that of Walker Holmes, co-founder and vice president of MetaTope, who sees much more progression in Ethereum in the long term than in the short termsince it places it in nothing less than $30,000 by 2030. But, immediately, go to the second cryptocurrency in the market trading at $800 at the end of 2022. And all on account of the sustained and continued rate hikes that discourage risk among investors.
Source: Ambito
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