Bitcoin, Ethereum Jump 7% as Crypto Market Rebounds
On Jun 06, 2022
After a few weeks of losses, the crypto market has rebounded with Bitcoin and Ethereum both jumping 7%. While it is unclear whether this rebound will be sustained, analysts are hopeful that this could be the start of a new bull run. Despite the recent volatility in the market, many investors remain bullish on cryptos and believe that they are still undervalued. As more institutions enter the market, it is likely that we will see even more growth in the coming months. For now, investors should continue to monitor the market closely and be prepared for more volatility in the future.
Bitcoin and Ethereum have been on an extended downtrend since October 2022. Despite a recent spike, their value still remains down more than 34%. The Fear & Greed Index is currently at 13, which corresponds to “extreme worry.” This shows that there is still a lot of uncertainty and fear in the market.
The cryptocurrency market has seen a corrective rally over the past few days, with Ether leading the charge. Against the US dollar, Ether has surged by more than 24 percent from $500 to $623. This is the first noteworthy corrective rally for Ether since April 7. The total value of all cryptocurrencies has also increased significantly in the same period. It remains to be seen if this rally can be sustained or not. Traders and investors are keeping a close eye on Bitcoin’s next move, as it could provide clues about the future direction of the markets.
Paul CIO of BlockTower Capital said, “Custody isn’t binary. It’s not like Coinbase custody will launch and suddenly every pension will throw $100m into BTC. It takes time for custody solutions to gain trustworthiness. But…I think we’ll have solid third party custody by September of this year.”
The cryptocurrency market has rebounded in the past few days, with Bitcoin and Ethereum both reaching new highs in the past week. This rebound is being attributed to the entrance of institutional investors into the market. Ari Paul stated that these investors are expected to take at least three to six months before they make any significant moves. He also noted that it is still uncertain whether or not the market will be able to reach its former $800 billion value. Despite this uncertainty, most investors remain optimistic about the mid-term trend of cryptocurrencies.
Despite the wild fluctuations in prices, don’t let a sudden price increase or decrease alter your long-term investment strategy for cryptocurrencies. Financial advisor Ric Edelman urges investors to remember that cryptocurrencies are still in their very early innings. In other words, there is still plenty of time for prices to go up (or down). So make sure you’re buying crypto because you believe in the technology and its potential, not just because the price is rising (or falling).