BTC and ETH heading for best month since 2021
29 Jul 2022
Bitcoin and Ether are on course for their best months since last year, on a revival of risk appetite within global markets and upbeat sentiment surrounding an upgrade to the Ethereum network.
Bitcoin, the world’s largest cryptocurrency, is up 28% in July, whilst the second largest, Ether, has risen 72% so far this month. That said, the rallies hesitated on Friday.
The economic slowdown in the United States is fuelling bets the Federal Reserve will have finished hiking rates by the end of the year, and move to slashing borrowing costs in 2023, resulting in a more favourable liquidity scenario for speculative assets, Money Control reports.
“Signs the Fed may be nearing the end of their hiking cycle have lifted all risk assets, and crypto has also benefited,” stated Venn Link Partners CEO, Cici Lu. “Liquidation of leveraged positions seems to be over,” she added, and “markets may have found the bottom.”
Cryptocurrencies are attempting to recover from losing more than 50% off the MVIS CryptoCompare Digital Assets 100 index this year.
The Ethereum blockchain is set to move to a more energy efficient system, which has bolstered native token, Ether recently. The crypto could move toward the $1,915 - $2,000 level in the coming days, says Fundstrat head of technical strategy, Mark Newton.
“Ethereum looks more attractive technically than Bitcoin in the short run, so pullbacks into mid-August should be buyable,” he said.
The move will see the second-largest blockchain radically reduce its energy consumption, and could see Ethereum require 99% less electricity by adopting the proof-of-stake consensus algorithm and ditching proof-of-work, reports U Today.
At the time of writing, Bitcoin is priced at $23,957, whilst Ethereum is trading at $1,715.