The attractiveness of cryptocurrencies after bankruptcy
Following this, some senior market economists announced that the leader of the cryptocurrency market owes its $10,000 rise to the investors’ view of this market. Of course, in the meantime, its effect on Ethereum should not be neglected. Also, referring to the trading process of this market in 2020, they announced that the record price of Bitcoin in the said year happened right when Bitcoin crossed the price of 20 thousand dollars and followed by an influx of buyers. This event caused this asset to reach the 60 thousand dollar channel. Predictions indicate that with the continuation of the trading trend of this market, Bitcoin and Ethereum will register the price of $40,000 and $2,500, respectively. But the question is, will this be possible? In response to this question, two scenarios should be mentioned by the analysts. Some of them believe that at the beginning of the new trading week, the dollar index will go up due to the possible increase in interest rates by the authorities. This event will follow the downward trend of the cryptocurrency and gold market in the coming week. Although the above markets will face a slight decline, this trend will not continue. This issue can be mentioned in one of the reports of “Economic World” in recent days, which was related to the speech of Christopher Waller, a member of the Federal Reserve Committee.
The report stated: “Monetary policy should be tightened given the capacity of the labor market as well as the strong levels of inflation,” Waller said citing the US jobs report in March. In his speech, he emphasized that his words are the opinions of all the members of the Federal Reserve Committee and that they support raising interest rates again in the coming months. This gives a negative signal to investors that the global dollar will remain strong for a short period of time, after which global markets will return to their former positions. On the other hand, some others believe that the tenth interest rate increase will not be more than 0.25 percentage points and this amount cannot have a significant impact on the trend of the dollar index. Therefore, it seems that at the beginning of the new trading week, Bitcoin and gold will face a slight decrease for a short period of time. We will have to wait until the next Federal Reserve meeting in May to understand this more precisely. But in the midst of this, it is also necessary to mention that with the continuation of the upward trend of Bitcoin, its losses of the past year will not be compensated in a short period of time, and assuming the continuation of the upward trend, it needs more time to compensate the losses of the last year.
