In recent days, the price of Bitcoin has had several upward movements. BTC reached $25,000 over the past week. This Monday, the price of Bitcoin closed at $24,840 dollars, but today, Wednesday, it has fallen to levels of $23,700.
What are the prospects?
The price of Bitcoin today continues without exceeding 25 thousand dollars. Cryptocurrencies have generated gains, despite negative market conditions with interest rates still rising.
The price of Bitcoin reacted to the unexpected increase in the Producer Price Index (PPI) in the United States. Despite this setback, Bitcoin surged 73% from its lowest point during January. The PPI news could have caused investors apprehension due to inflation and monetary policies.
Regarding the price of Ethereum, we know that it is the second most important blockchain and has a high correlation with Bitcoin. Ethereum has been a strong performer over the past seven days, posting a 10% rally against the US dollar and hitting new highs in the $1,740 area.
In the upper graph we can see the variation of Bitcoin (BTC) and Ethereum (ETH) so far in 2023. We observe that despite the volatility, the price of Bitcoin has had a positive cumulative variation.
The increase in the price of Bitcoin has been partly attributed to increased institutional demand. Big companies like Tesla, MicroStrategy, and Square have invested billions of dollars in BTC, increasing its appeal as a form of safe investment. The adoption of Bitcoin as a means of payment has also grown, thanks to companies like PayPal and Visa allowing their users to buy, sell and pay with Bitcoin.
The Ethereum price has made significant moves in 2023. In January, Ethereum started the year at around $1,200, but by February it rose to over $1,600. Like Bitcoin, the Ethereum price also experienced a major low in mid-February, falling to around $1,500 before recovering.
Unlike Bitcoin, Ethereum has a broader use case as it is used in the creation of decentralized applications (dApps) and smart contracts. Furthermore, Ethereum has been undergoing a large number of upgrades and improvements to its infrastructure, which has increased its appeal to developers and investors.
“Recently, the crypto market led by Bitcoin and Ethereum shows stability in its prices and also generates positive effects for other cryptocurrencies. At CryptoMarket we believe that the market will remain in these ranges, also depending on the new macroeconomic announcements”, explained Rafael Meruane, co-founder of the platform.