After the various convulsions that the crypto market has gone through, many factors are evaluated to determine what has driven the market and if this represents a fundamental change in the trend of Bitcoin and other cryptocurrencies. You can visit site if you want to know more about such information related to cryptocurrency investments.
The aspect related to the digital financial market that caused a terrible effect on their evolution was the collapse of the cryptographic project known as Terra.
The sentiments generated by the market are diverse, where investors’ greatest fears or expectations take refuge; in this delicate scenario, they tend to remain attentive to any change.
Surprisingly, the expectations regarding the financial markets are beginning to generate greater confidence and tranquility in the various users, which has undoubtedly contributed to the slight rise in cryptocurrencies.
Many people tend to infer that the changes in the displacement of the curve of Bitcoin and other cryptocurrencies refer precisely to the fact that Ethereum launched a new phase on the market that will allow it to make the crypto investment process much safer, easier, and more reliable, said the merger is known as “The Merge.”
Ethereum gives the crypto boost
Although the value of Bitcoin seems to have stabilized by staying in the margin of 24,000, it could be considered that this is perhaps the floor investors have been waiting for so long to view entries into the crypto market again.
There are many considerations because the general economic panorama seems calm, and what could happen has not yet been definitively established. Still, many tend to consider that this impulse was after the announcement of the merger tests that Ethereum launched.
Possibly Ethereum has remained in a constant increase despite the downward trend that has developed during the months of 2022; one of the most outstanding calculations was the one that showed that Ethereum has managed to increase its value by almost 100%, growing compared to Bitcoin.
The reality is that the expectation about the changes that will be generated in the Ethereum network is very high, so this could contribute to the increase in price and, of course, in its positioning at the market capitalization level.
We are facing a change of scenery that could promote an upward trend. Still, the trading levels of cryptocurrencies are significantly affected by the drastic measures taken at the level of the economy of powers such as the United States and Spain.
An announced end that was not fulfilled
The collapse caused by Terra left more than one investor with a negative attitude towards digital currencies, which, added to the fall of the crypto market, complicated the possibilities of obtaining returns because the volume of cryptocurrency purchase transactions is discouraged.
The forecasts regarding the valuation of cryptocurrencies have been very varied, where the followers of digital currencies assume that we are in a recovery stage and that the value of Bitcoin could reach 100,000 dollars; on the other hand, many announced the end of the crypto ecosystem.
Extremes are never good, which is why a neutral position must be sought in the case of financial markets, where equilibrium determines the displacement of the supply and demand curve to choose a coherent price that agrees with the global economic outlook.
Bitcoin and Ethereum are progressively increasing their value because of the crypto winter that could have ended to create a more realistic and reliable scenario where short- and long-term investors can allocate their capital to recover what was lost in the year’s first half.
The increases in the price of Bitcoin could be between 10 and 20% to date, generating, in turn, a rebound in the cost of the rest of the cryptocurrencies since the market bases most of its fluctuations on Bitcoin.
This increase not only in Bitcoin but also in Ethereum could give a sense of calm to users and to Exchanges that have been between a rock and a hard place to survive the voracious market surrounding cryptocurrencies.
The temporary recovery of the digital financial market could be linked to various factors. The Fed’s decision to increase rates in a smaller proportion than expected and the approach of new proposals in the crypto environment stand out.
The exciting thing about all this is that investors’ stance is now much more analytical and cautious, which could lead to more effective investments.