Key takeaways:
- The bitcoin price has slightly rebounded to just over USD 64,000.
- The ether price briefly broke through USD 1,700.
- Experts wonder whether it is worth investing in cryptocurrencies again.
Bitcoin price after a series of declines
Ether increased in price to USD 1,725, but the declines have returned – currently, 1 ETH costs USD 1,656, which means that the price fell by 2% in 24 h and 17% in 7 days.
The rebound on ether was predicted by Ali Charts, who in one of his recent posts indicated that the “buy signal” for ETH was on.
He also notes that “historically, Bitcoin has tended to create major lows when over 10 million coins are held at a loss,” and “that threshold has now been reached, with 10.46 million BTC currently underwater.”
I believe this is an important signal because selling pressure often begins to fade when fewer investors are willing to realize losses, increasing the likelihood of a market bottom.
– he concluded.
Ether or Bitcoin?
Why has ether been performing worse than bitcoin for years? More and more people are asking this question and it’s good that it’s finally being asked out loud. ETH has a more serious problem than just a worse price. The competition is biting off larger and larger pieces of the market, projects are running away to where it is cheaper, and each new token appears on several networks at the same time because the creators are simply looking for the cheapest transfer.
– he pointed.
In his opinion, “subsequent improvements to the protocol paradoxically shift traffic to second-order layers instead of driving the value of ETH itself.”
The network is becoming more and more technically efficient, but this does not translate into the burning of tokens or the deflationary dynamics that everyone was waiting for. Instead, we have a growing supply and fewer and fewer reasons to hold ETH for ETH’s sake. In addition, Ethereum has been consistently focusing on product development at the expense of marketing for years, and this also has a significant impact on the price
– warns.
Summarizing his thought, he added that “the technology (Ethereum) is really solid and the ecosystem is huge, but the market rewards narrative, not just code, and for now it is voting with its feet.”
So is it worth buying ether right now? Or maybe just bet on bitcoin? The optimal solution is probably to diversify your portfolio and famously not put all your eggs in one basket.
