Bitcoin Marching to US$25k and Ethereum to 1.7k! How Long Will this Rally Last?
Since the month of July has been good to Ethereum and Bitcoin, let’s see what August holds for them
Bitcoin, the largest crypto, reached US$24,000 on Friday hitting a fresh new high in July as it continues to follow the rising stock market. Ethereum, the second-largest crypto, climbed above US$1,700 and other cryptocurrencies were also trading higher on Friday. The two largest cryptocurrencies are on track for their best month of the year. Bitcoin is up more than 20% in July and Ethereum is up 50%, according to NextAdvisor’s crypto price data.
But after a dismal first half of the year, is the crypto market poised for a bull run in the second half?
Experts say not quite, warning investors to remain cautious.
The market could easily come crashing down again given the current macro environment, so it may not be wise to take on risky bets right now.
“Many are warning we are not yet out of the woods from a macro perspective,” Adrian Kenny says in an interview, a senior sales trader at digital asset broker GlobalBlock. “A cautious thesis is a more logical stance to take in the current conditions.”
Many big retail and tech companies including Google, Apple, and Meta, revealed their second-quarter earnings, a factor that influences stock prices. The Federal Reserve raised interest rates by 75 basis points but signaled it may slow down the pace of such rises.
And an economic report revealed that U.
S. GDP fell for a second consecutive quarter in a row. Though that follows a commonly understood technical definition of a recession, President Joe Biden and Fed Chairman Jerome Powell both said this week that the U.S. is not in a recession. Experts say all eyes have recently been looking to how the Fed would respond to the threat of soaring inflation and a potential recession. Experts say the upward movement in the markets suggests that investors were already expecting those outcomes this week, and will likely continue moving higher in the short-term because investors have already priced in the bad news.
The reaction has been very positive this week and the cryptocurrency markets once again tipped over the US trillion market cap once again.
While this week has for the first time in over a month seen some market recovery, there is still “an undoubtedly considerable mountain to climb in terms of ‘normality’ or the hopes of a return to the highs of 2021 anytime soon.
