Have already spent more than two weeks since the collapse of the prices of cryptocurrencies. Today, the market appears optimistic, with the price of the criptoactivos increasing, but… what Will remain so for a long time? Here in CriptoTendencia we tell you what to expect in the market of Bitcoin and Ethereum.
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A bit of context: the collapse
On September 24, chaos reigned in the market criptoactivos. In a matter of hours the price of Bitcoin fell from 9718 dollars per BTC until the 8.364, continuing the descent the following day. This even led to the fear that a fall below $ 7,000. Quote of Bitcoin in the last 2 weeks The drop in price was motivated by the maturity of the futures contracts of Bitcoin of the Chicago Mercantile Exchange (CME). More than half of these derivatives had as the date of execution on Friday, 27 September. This generated an incentive to speculation in major players in the market. Which, they began to offer large amounts of Bitcoins. Which led to an excess of supply, which was not in line with the natural demand, bringing down prices and making the BTC to come down. And being the Bitcoin the main criptomoneda of the market, and a reference value of the crypto world, its collapse has affected the whole system. So, we saw currencies such as Ethereum that were going through a very good time, came down along with BTC.
The price of Bitcoin
However, and as mentioned here in CriptoTendencia, this decline was not to last long. And that, once they are expired contracts of the CME missed the incentive to speculation in the crypto market. Allowing the laws of supply and demand return to decide the value of Bitcoin and other cryptocurrencies. All this is positive for BTC. Because, as I have commented the analyst of the house, the prospects of Bitcoin to the end of this year and early next, seem pretty solid. And in fact, the increase of 800% of the future contracts on Bitcoin of Bakkt, it seems to be a confirmation of this analysis. In spite of which, there is an element which is likely to delay the recovery of Bitcoin in the short term. Since, the Bitcoin is an asset, a store of value, i.e. an asset that are looking for investors in times of economic and political uncertainty. Therefore, the announcement of a possible partial understanding between China and the united States, could diminish the interest of investors in this market. Which allows us to explain also the variations in the price of BTC, which from the day of yesterday, seems to have arrested its progress. Graph of Bitcoin in the last 24 hours
The price of Ethereum
For its part, Ethereum seems to be the big loser in the collapse of the Bitcoin. Therefore, although the market for cryptocurrencies is recovering little by little your quote. In the case of the ETH, this recovery seems to be tied to Bitcoin, and have nothing to do with its previous boom. And is that, during the increase in prices prior to the collapse of September 24, several commentators came to believe that Ethereum could have become independent of Bitcoin. Not being tied to your quotation from that point forward, the movements in the market of BTC. However, the movements in the market of ETH in the last few days seem to be under the influence of Bitcoin once more. Stopping his ascent just at the moment that the Bitcoin did. Staying well, within the range of prices considered normal previously. That is to say, around 180 dollars. A trend that does not seem that they will break so soon, if there is a change in the conditions of the crypto world. Graph of Ethereum for the last 48 hours The following two tabs change content below. Student of International Studies, interested in issues of economy and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and the cryptocurrencies in particular.